This
Prospectus contains essential information for anyone considering an investment
in the Funds. Please read this document carefully and retain it for future
reference.
The
securities and exchange commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. any representation to
the contrary is a criminal offense.
As
of the date of this prospectus, Class A Shares, Class C Shares and
Investor Class Shares of the Meridian Growth Fund and the Meridian Small
Cap Growth Fund are not offered to the public, except in limited circumstances.
MERIDIAN
FUND, INC.®
Table
of Contents
|
|
|
| |
|
|
|
1 |
|
| |
|
|
|
1 |
|
| |
|
|
|
9 |
|
| |
|
|
|
16 |
|
| |
|
|
|
24 |
|
| |
|
|
|
| |
| |
|
|
|
32 |
|
| |
|
|
|
32 |
|
| |
|
|
|
33 |
|
| |
|
|
|
33 |
|
| |
|
|
|
34 |
|
| |
|
|
|
35 |
|
| |
|
|
|
35 |
|
| |
|
|
|
36 |
|
| |
|
|
|
42 |
|
| |
|
|
|
42 |
|
| |
|
|
|
42 |
|
| |
|
|
|
42 |
|
| |
|
|
|
43 |
|
| |
|
|
|
45 |
|
| |
|
|
|
45 |
|
| |
|
|
|
45 |
|
| |
|
|
|
46 |
|
| |
|
|
|
46 |
|
| |
|
|
|
54 |
|
| |
|
|
|
55 |
|
| |
|
|
|
57 |
|
| |
|
|
|
60 |
|
| |
|
|
|
61 |
|
| |
|
|
|
62 |
|
| |
|
|
|
62 |
|
| |
|
|
|
65 |
|
| |
|
|
|
65 |
|
| |
|
|
|
66 |
|
| |
|
|
|
68 |
|
FUND
SUMMARY
MERIDIAN
GROWTH FUND
Investment
Objective
The
MERIDIAN GROWTH FUND seeks
long-term growth of capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund.
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees
(fees
paid directly from your investment) |
|
|
Class A Shares |
1 |
|
|
Class C Shares |
1 |
|
|
Investor Class
Shares |
1,2 |
|
|
| |
Maximum
Sales Charge (Load) on Purchases |
|
|
5.75% |
|
|
|
NONE |
|
|
|
NONE |
|
|
|
| |
Maximum
Deferred Sales Charge (Load) |
|
|
NONE |
|
|
|
1.00% |
|
|
|
NONE |
|
|
|
| |
Redemption
Fee (as a percentage of amount redeemed, if you sell or exchange your
shares within 60 days of purchase) |
|
|
2.00% |
|
|
|
NONE |
|
|
|
2.00% |
|
|
|
| |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Management
Fees |
|
|
0.76% |
|
|
|
0.76% |
|
|
|
0.76% |
|
|
|
| |
Distribution
(Rule 12b‑1) Fees |
|
|
0.25% |
|
|
|
1.00% |
|
|
|
0.00% |
|
|
|
| |
Other
Expenses |
|
|
0.11% |
|
|
|
0.13% |
|
|
|
0.18% |
|
|
|
| |
Total
Annual Fund Operating Expenses3,4 |
|
|
1.12% |
|
|
|
1.89% |
|
|
|
0.94% |
|
1 |
As
of the date of this prospectus, Class A, Class C and Investor
Class shares of the Meridian Growth Fund are no longer offered to the
public, except in limited circumstances.
|
2 |
You
may be required to pay commissions and/or other forms of compensation to a
broker for transactions in Investor Class shares, which are not
reflected in the tables or examples below.
|
3 |
The
Investment Adviser has agreed to waive a portion of the investment
advisory and/or administration fees and/or reimburse other expenses of the
Meridian Growth Fund so that the ratio of expenses to average net assets
of the Meridian Growth Fund (excluding Acquired Fund Fees and Expenses,
brokerage expenses, dividend expenses on securities sold short and
interest expenses on short sales, taxes, and extraordinary expenses) does
not exceed 1.30% for Class A, 2.05% for Class C and 1.05% for
Investor Class. These expense limitations may not be amended or withdrawn
until one year
after the date of this prospectus without the consent of
the Board of Directors. |
4 |
For
a period not to exceed three (3) years on which a waiver of
reimbursement in excess of the expense limitation is made by the
Investment Adviser, the Fund will carry forward, and may repay the
Investment Adviser such amounts; provided, however, that such recapture
payments do not cause the Fund’s expense ratio (after recapture) to exceed
the lesser of (i) the expense limitation in effect at the time of the
waiver or (ii) the expense limitation in effect at the time of the
recapture. |
Example
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in Class A shares, Class C shares or Investor
Class shares of 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, the Fund’s operating expenses remain the
same and the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and Recoupment shown above will only be in place for the
length of the current commitment. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
Class A Shares |
|
$ |
683 |
|
|
$ |
911 |
|
|
$ |
1,157 |
|
|
$ |
1,860 |
|
|
|
|
| |
Class C Shares |
|
$ |
292 |
|
|
$ |
594 |
|
|
$ |
1,021 |
|
|
$ |
1,917 |
|
|
|
|
| |
Investor Class Shares |
|
$ |
96 |
|
|
$ |
300 |
|
|
$ |
520 |
|
|
$ |
1,155 |
|
You
would pay the following expenses if you did not redeem your shares of the Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
|
Class A Shares |
|
|
$ |
683 |
|
|
$ |
911 |
|
|
$ |
1,157 |
|
|
$ |
1,860 |
|
|
|
|
| |
|
Class C Shares |
|
|
$ |
192 |
|
|
$ |
594 |
|
|
$ |
1,021 |
|
|
$ |
1,917 |
|
|
|
|
| |
|
Investor Class Shares |
|
|
$ |
96 |
|
|
$ |
300 |
|
|
$ |
520 |
|
|
$ |
1,155 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the Fund’s
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the Example, affect the Fund’s performance.
For the fiscal year ended June 30, 2023, the Fund’s portfolio turnover rate
was 47% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks long-term growth of capital by investing primarily in a diversified
portfolio of publicly traded common stocks of U.S. companies. Under normal
circumstances, the Fund emphasizes small- and mid‑capitalization growth
companies that the Investment Adviser believes may have prospects for
above-average growth in revenues and earnings because of many factors, including
high sales growth, high unit growth, industry growth, high or improving returns
on assets and equity and a strong balance sheet. The Fund may invest in
securities of companies with any capitalization across a broad range of
industries, though it typically emphasizes small- and mid‑capitalization
companies. These may include companies that are relatively small in terms of
total assets, revenues and earnings. The mix of the Fund’s investments at any
time will depend on the industries and types of securities the Investment
Adviser believes hold the most potential for
achieving
the Fund’s investment objective. The Fund may invest up to 25% of its total
assets, calculated at the time of purchase, in securities of foreign companies,
including emerging market companies. The Fund generally sells investments when
the Investment Adviser concludes that better investment opportunities exist in
other securities, the security is fully valued, or the issuer’s circumstances or
the political or economic outlook have changed.
Principal
Investment Risks
There
are risks involved with any investment. The principal risks associated with an
investment in the Fund, which could adversely affect its net asset value, yield
and return, are set forth below. Please see the section “Further Information
About Principal Risks” in this Prospectus for a more detailed discussion of
these risks and other factors you should carefully consider before deciding to
invest in the Fund.
An investment in the Fund may lose money and
is not a deposit of a bank or insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency.
Equity Securities Risk — Equity securities
fluctuate in price and value in response to many factors including historical
and prospective earnings of the issuer and its financial condition, the value of
its assets, general economic conditions, interest rates, investors’ perceptions,
market liquidity, natural disasters and the spread of infectious disease or
other public health issues.
The
impact of COVID‑19, (and the variants of such virus) and other epidemics and
pandemics that may arise in the future, could affect the economies of many
nations, individual companies, their securities (including equity and debt), and
the market in general in ways that cannot necessarily be foreseen at the present
time. Health crises caused by the recent coronavirus outbreak may exacerbate
other pre‑existing political, social, financial, and economic risks in certain
countries. The impact of the outbreak may last for an extended period of time.
Small and Medium Company Risk — Generally, the
smaller the capitalization of a company, the greater the risk associated with an
investment in the company. The stock prices of small- and mid‑capitalization and
newer companies tend to fluctuate more than those of larger capitalized and/or
more established companies and generally have a smaller market for their shares
than do large capitalization companies.
Large Company Risk — Larger, more established
companies may be unable to respond quickly to new competitive challenges such as
changes in consumer tastes or innovative smaller competitors. Also, large‑cap
companies are sometimes unable to attain the high growth rates of successful,
smaller companies, especially during extended periods of economic expansion.
Growth Securities Risk — Because growth
securities typically trade at a higher multiple of earnings than other types of
securities, the market values of growth securities may be more sensitive to
changes in current or expected earnings than the market values of other types of
securities. In addition, growth securities, at times, may not perform as well as
value securities or the stock market in general, and may be out of favor with
investors for varying periods of time.
Investment Strategy Risk — The Investment
Adviser uses the Fund’s principal investment strategies and other investment
strategies to seek to achieve the Fund’s investment objective of long-term
growth of
capital.
There is no assurance that the Investment Adviser’s investment strategies or
securities selection method will achieve that investment objective.
Market Risk — The value of the Fund’s
investments will fluctuate in response to the activities of individual companies
and general stock market and economic conditions. As a result, the value of your
investment in the Fund may be more or less than your purchase price.
Securities Lending Risk — The Fund may engage
in securities lending. Securities lending involves the risk that the Fund may
lose money because the borrower of the loaned securities fails to return the
securities in a timely manner or at all. The Fund could also lose money in the
event of a decline in the value of collateral provided for loaned securities or
a decline in the value of any investments made with cash collateral. These
events could also trigger adverse tax consequences for the Fund.
Sector Concentration Risk — The Fund may
concentrate its investments in companies that are in a single sector or related
sector. Concentrating investments in a single sector may make the Fund more
susceptible to adverse economic, business, regulatory or other developments
affecting that sector. If an economic downturn occurs in a sector in which the
Fund’s investments are concentrated, the Fund may perform poorly during that
period. The Fund anticipates it will typically invest a significant portion of
its assets in the industrials sector and the healthcare sector and, therefore,
the Fund’s performance could be negatively impacted by events affecting these
sectors.
The
industrials sector may be adversely affected by, among other things, changes in
the supply of and demand for products and services, product obsolescence, claims
for environmental damage or product liability and general economic conditions.
Healthcare Sector Risk — The Fund anticipates
it will typically invest a significant portion of its assets in the healthcare
sector and, therefore, the Fund’s performance could be negatively impacted by
events affecting the healthcare sector. The health care sector is subject to
extensive government regulation and its profitability can be adversely affected
by, among other things, restrictions on government reimbursement for medical
expenses, rising costs of medical products and services, and increased emphasis
on the delivery of healthcare through outpatient services.
Foreign Securities Risk — Investments in
foreign securities may be subject to more risks than those associated with U.S.
investments, including currency fluctuations, political and economic instability
and differences in accounting, auditing and financial reporting standards.
Foreign securities may be less liquid than domestic securities so that the Fund
may, at times, be unable to sell foreign securities at desirable times or
prices. In addition, emerging market securities involve greater risk and more
volatility than those of companies in more developed markets. Significant levels
of foreign taxes are also a risk related to foreign investments.
Performance
The bar chart and
table below show the Fund’s historical performance and provide an indication of
the risks of investing in the Fund. The bar chart shows changes in the
performance of the Fund’s Investor Class shares from
year‑to‑year. The performance of the Fund’s other share classes
would have differed from the Investor Class shares only to the extent that
such classes have higher expenses than the Investor Class shares, which
would have resulted in lower performance.
The table shows how the Fund’s
average annual returns compare with those of the Russell 2500® Growth
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
for the Fund may be obtained by visiting www.arrowmarkpartners.com/meridian
or by calling 1‑800‑446‑6662.
Year‑by‑Year
Total Returns as of 12/31
During
the period covered by this bar chart, the Fund’s Investor Class shares
highest
quarterly return was 32.96% (for the quarter
ended June 30, 2020); and the
lowest
quarterly return was –30.46% (for the
quarter ended March 31, 2020).
For
the period January 1, 2023 through September 30, 2023, the
total
return of the Fund’s Investor Class shares was
3.73%.
Average
Annual Total Returns
(For
the year ended December 31, 2022)
|
|
|
|
|
|
|
|
|
|
|
| |
MERIDIAN
GROWTH FUND
Investor
Class Shares (11/15/13) |
|
1 Year |
|
|
5 Year |
|
|
Life of Class |
|
|
|
| |
Return
Before Taxes |
|
|
(29.31 |
)% |
|
|
3.81% |
|
|
|
7.24% |
|
|
|
| |
Return
After Taxes on Distributions |
|
|
(31.69 |
)% |
|
|
1.00% |
|
|
|
4.67% |
|
|
|
| |
Return
After Taxes on Distributions and Sale of Fund Shares1 |
|
|
(16.18 |
)% |
|
|
2.68% |
|
|
|
5.27% |
|
|
|
| |
Class A
Shares (11/15/13) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Return
Before Taxes |
|
|
(29.46 |
)% |
|
|
3.54% |
|
|
|
6.92% |
|
|
|
| |
Class C
Shares (07/01/15) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Return
Before Taxes |
|
|
(29.97 |
)% |
|
|
2.81% |
|
|
|
5.45% |
|
Russell
2500® Growth Index
(reflects no deductions for fees, expenses or taxes) |
|
|
(26.21 |
)% |
|
|
5.97% |
|
|
|
7.73% |
|
1 |
The
Fund’s returns after taxes on distributions and sale of Fund shares may be
higher than its returns after taxes on distributions because it includes
the effect of a tax benefit an investor may receive resulting from the
capital losses that would have been incurred on the sale of the
shares. |
After‑tax
returns are calculated using the historical highest individual federal marginal
income tax rates for the character of income in question (as ordinary income or
long-term gain) and do not reflect the impact of state and local taxes.
Actual
after‑tax returns depend on an investor’s tax situation and may differ from
those shown. After‑tax returns shown are not relevant to investors who hold
their Fund shares through tax‑advantaged arrangements such as 401(k) plans or
individual retirement accounts.
Management
ArrowMark
Colorado Holdings, LLC
Portfolio
Managers
Chad
Meade serves as a Co‑Portfolio Manager of the Fund. Mr. Meade, who joined
the Investment Adviser in 2013, has served as a Co‑Portfolio Manager of the Fund
since September 5, 2013.
Brian
Schaub, CFA, serves as a Co‑Portfolio Manager of the Fund. Mr. Schaub, who
joined the Investment Adviser in 2013, has served as a Co‑Portfolio Manager of
the Fund since September 5, 2013.
Purchase
and Sale of Fund Shares
The
Meridian Growth Fund no longer accepts offers to purchase Investor Class,
Class A and Class C shares of the Fund, unless the purchase is made
pursuant to or by:
• |
|
Current
Investor Class, Class A, and Class C shareholders;
|
• |
|
Financial
intermediaries and advisors investing on behalf of clients currently
invested in the Fund; |
• |
|
Sponsors
of wrap programs or model portfolios who include the Fund as part of a
discretionary fee‑based program or model portfolio on behalf of current
and new clients with pre‑approval by the Adviser;
|
• |
|
Existing
and new participants in employer-sponsored retirement plans that currently
offer the Fund as an investment option; or |
• |
|
Investment
consultants with clients currently invested in the Fund or an exception
request for a new client opportunity has been pre‑approved by the Adviser.
|
The
Board of Directors (the “Board”) reserves the right to re‑open the Investor
Class, Class A and Class C shares of the Fund to new investors at any
time or to modify the extent to which future sales of shares are limited. The
Fund reserves the right to permit the establishment of new accounts under
circumstances not identified above, and to reject any purchase order or rescind
any exception listed above that the Board determines does not benefit the Fund
and its shareholders.
The
following table shows the minimum investment amounts for purchasing share
classes of the Meridian Growth Fund.
|
|
|
|
|
| |
Class |
|
Minimum Initial Investment |
|
Minimum Subsequent Investment |
|
Distribution Fee |
|
|
| |
Class A Shares |
|
$2,5001 |
|
$50 |
|
0.25% |
|
|
| |
Class C Shares |
|
$2,5001 |
|
$50 |
|
1.00% |
|
|
| |
Investor Class Shares |
|
$2,500 |
|
$50 |
|
NONE |
1 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
The
Fund reserves the right to change the amount of these minimums from time to time
or to waive them in whole or in part if, in the Investment Adviser’s or the
Fund’s opinion, the investor has adequate intent and availability of assets to
reach a future level of investment in the Fund that is equal to or greater than
the minimum. Shareholders will be notified of any changes to the Fund’s
investment minimums via a supplement to the Fund’s prospectus.
You
may purchase, redeem or exchange shares of the Funds on any business day, which
is any day the New York Stock Exchange is open for business. Generally, you
may purchase, redeem or exchange shares only through institutional channels,
such as financial intermediaries and retirement platforms. The minimum
investment for Class A shares, Class C shares, and Investor
Class shares is $2,500 per Fund account for non‑retirement accounts.
Certain tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to
a $500 minimum. Investors in a defined contribution plan through a third-party
administrator should refer to their plan document or contact their plan
administrator for additional information. Accounts that are a part of certain
wrap programs may not be subject to these minimums. Investors should refer to
their intermediary for additional information.
Tax
Information
Any
distributions you receive from a Fund may be taxable as ordinary income, capital
gains, qualified dividend income, or section 199A dividends, except when your
investment is in an IRA, 401(k) or other tax advantaged investment plan.
Withdrawals from such a tax‑advantaged investment plan are subject to special
tax rules.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of a Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related entities 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 advisor to recommend the Fund or one share class over
another investment or share class, as applicable. Ask your advisor or financial
intermediary for more information.
FUND
SUMMARY
MERIDIAN
CONTRARIAN
FUND
Investment
Objective
The
MERIDIAN CONTRARIAN FUND seeks
long-term growth of capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder Fees (fees paid directly from
your investment) |
|
|
Class A Shares |
|
|
|
Class C Shares |
|
|
|
Investor Class
Shares |
1 |
|
|
| |
Maximum
Sales Charge (Load) on Purchases |
|
| 5.75% |
|
|
| NONE |
|
|
| NONE |
|
|
|
| |
Maximum
Deferred Sales Charge (Load) |
|
| NONE |
|
|
| 1.00% |
|
|
| NONE |
|
|
|
| |
Redemption
Fee (as a percentage of amount redeemed, if you sell or exchange your
shares within 60 days of purchase) |
|
| 2.00% |
|
|
| NONE |
|
|
| 2.00% |
|
|
|
| |
|
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Management
Fees |
|
| 1.00% |
|
|
| 1.00% |
|
|
| 1.00% |
|
|
|
| |
Distribution
(Rule 12b‑1) Fees |
|
| 0.25% |
|
|
| 1.00% |
|
|
| 0.00% |
|
|
|
| |
Other
Expenses |
|
| 0.21% |
|
|
| 0.23% |
|
|
| 0.19% |
|
|
|
| |
Total
Annual Fund Operating Expenses |
| |
1.46% |
|
| |
2.23% |
|
| |
1.19% |
|
1 |
You may be required to pay commissions
and/or other forms of compensation to a broker for transactions in
Investor Class shares, which are not reflected in the tables or
examples below. |
2 |
The
Investment Adviser has agreed to waive a portion of the investment
advisory and/or administration fees and/or reimburse other expenses of the
Meridian Contrarian Fund so that the ratio of expenses to average net
assets of the Meridian Contrarian Fund (excluding Acquired Fund Fees and
Expenses, brokerage expenses, dividend expenses on securities sold short
and interest expenses on short sales, taxes, and extraordinary expenses)
does not exceed 1.50% for Class A, 2.25% for Class C and 1.25%
for Investor Class. These expense limitations may not be amended or
withdrawn until one year
after the date of this prospectus without the consent of
the Board of
Directors. |
3 |
For
a period not to exceed three (3) years on which a waiver of
reimbursement in excess of the expense limitation is made by the
Investment Adviser, the Fund will carry forward, and may repay the
Investment |
|
|
|
| |
|
| 9 |
| Meridian Contrarian Fund |
| Adviser
such amounts; provided, however, that such recapture payments do not cause
the Fund’s expense ratio (after recapture) to exceed the lesser of
(i) the expense limitation in effect at the time of the waiver or
(ii) the expense limitation in effect at the time of the
recapture. |
Example
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in Class A shares, Class C shares or Investor
Class shares of 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, the Fund’s operating expenses remain the
same and the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and Recoupment shown above will only be in place for the
length of the current commitment. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
Class A Shares |
| $ |
715 |
|
| $ |
1,010 |
|
| $ |
1,326 |
|
| $ |
2,222 |
|
|
|
|
| |
Class C Shares |
| $ |
326 |
|
| $ |
697 |
|
| $ |
1,195 |
|
| $ |
2,279 |
|
|
|
|
| |
Investor Class Shares |
| $ |
121 |
|
| $ |
378 |
|
| $ |
655 |
|
| $ |
1,445 |
|
You
would pay the following expenses if you did not redeem your shares of the
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
Class A Shares |
| $ |
715 |
|
| $ |
1,010 |
|
| $ |
1,326 |
|
| $ |
2,222 |
|
|
|
|
| |
Class C Shares |
| $ |
226 |
|
| $ |
697 |
|
| $ |
1,195 |
|
| $ |
2,279 |
|
|
|
|
| |
Investor Class Shares |
| $ |
121 |
|
| $ |
378 |
|
| $ |
655 |
|
| $ |
1,445 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the Fund’s
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the Example, affect the Fund’s performance.
For the fiscal year ended June 30, 2023, the Fund’s portfolio turnover rate
was 54% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks long-term growth of capital by investing primarily in a diversified
portfolio of publicly traded common stocks of U.S. companies. Under normal
circumstances, the Fund invests in the stocks of businesses that are likely to
have recently underperformed their peers, or the market due to what the
Investment Adviser deems to be temporary operational issues. The Fund then
emphasizes stocks which the Investment Adviser believes are undervalued in
relation to the business’ (or issuer’s) long-term earnings power or asset value,
or the stock market in general. Securities in which the Fund invests may be
undervalued because
|
|
|
| |
Meridian
Contrarian Fund |
| 10 |
| |
of
many factors, including market decline, poor economic conditions, tax‑loss
selling or actual or anticipated unfavorable developments affecting the issuer
of the security. The Fund may invest in securities of companies with any
capitalization across a broad range of industries. The Fund intends to invest at
least 65% of its total assets in common stocks and equity-related securities
(such as convertible debt securities and warrants). The Fund may invest up to
35% of its total assets in debt or fixed income securities, including higher
yield, higher risk, lower rated or unrated corporate bonds commonly referred to
as “junk bonds.” These are bonds that are rated Ba or below by Moody’s or BB or
below by S&P. The Fund may invest up to 10% of its total assets in
securities rated Ca or below by Moody’s Investors Service, Inc. (“Moody’s”) or C
or below by Standard and Poor’s Ratings Services (“S&P”) or unrated but
considered by the Investment Adviser to be of comparable quality. The Fund may
also invest up to 25% of its total assets, calculated at the time of purchase,
in securities of foreign companies, including emerging market companies. The
Fund generally sells investments when (i) the Investment Adviser concludes
that the company’s fundamentals are not meeting expectations; (ii) better
investment opportunities exist; and/or (iii) the company’s business has
improved and this, in the Investment Adviser’s opinion, is reflected in the
share price.
Principal
Investment Risks
There
are risks involved with any investment. The principal risks associated with an
investment in the Fund, which could adversely affect its net asset value, yield
and return, are set forth below. Please see the section “Further Information
About Principal Risks” in this Prospectus for a more detailed discussion of
these risks and other factors you should carefully consider before deciding to
invest in the Fund.
An investment in the Fund may lose money and
is not a deposit of a bank or insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental
agency.
Equity Securities Risk — Equity securities
fluctuate in price and value in response to many factors including historical
and prospective earnings of the issuer and its financial condition, the value of
its assets, general economic conditions, interest rates, investors’ perceptions,
market liquidity, natural disasters and the spread of infectious disease or
other public health issues.
The
impact of COVID‑19, (and the variants of such virus) and other epidemics and
pandemics that may arise in the future, could affect the economies of many
nations, individual companies, their securities (including equity and debt), and
the market in general in ways that cannot necessarily be foreseen at the present
time. Health crises caused by the recent coronavirus outbreak may exacerbate
other pre‑existing political, social, financial, and economic risks in certain
countries. The impact of the outbreak may last for an extended period of
time.
Large Company Risk — Larger, more established
companies may be unable to respond quickly to new competitive challenges such as
changes in consumer tastes or innovative smaller competitors. Also, large‑cap
companies are sometimes unable to attain the high growth rates of successful,
smaller companies, especially during extended periods of economic
expansion.
Small and Medium Company Risk — Generally, the
smaller the capitalization of a company, the greater the risk associated with an
investment in the company. The stock prices of small- and mid‑capitalization and
newer companies tend to fluctuate more than those of larger capitalized and/or
more established companies and generally have a smaller market for their shares
than do large capitalization companies.
|
|
|
| |
|
| 11 |
| Meridian Contrarian Fund |
Value Securities Risk — The market value of a
value security may take longer than anticipated to rise, may decline or may fail
to meet the Investment Adviser’s assessment of its potential value. In addition,
value securities, at times, may not perform as well as growth securities or the
stock market in general, and may be out of favor with investors for varying
periods of time.
Investment Strategy Risk — The Investment
Adviser uses the Fund’s principal investment strategies and other investment
strategies to seek to achieve the Fund’s investment objective of long-term
growth of capital. There is no assurance that the Investment Adviser’s
investment strategies or securities selection method will achieve that
investment objective.
Market Risk — The value of the Fund’s
investments will fluctuate in response to the activities of individual companies
and general stock market and economic conditions. As a result, the value of your
investment in the Fund may be more or less than your purchase
price.
Securities Lending Risk — The Fund may engage
in securities lending. Securities lending involves the risk that the Fund may
lose money because the borrower of the loaned securities fails to return the
securities in a timely manner or at all. The Fund could also lose money in the
event of a decline in the value of collateral provided for loaned securities or
a decline in the value of any investments made with cash collateral. These
events could also trigger adverse tax consequences for the
Fund.
Sector Concentration Risk — The Fund may
concentrate its investments in companies that are in a single sector or related
sector. Concentrating investments in a single sector may make the Fund more
susceptible to adverse economic, business, regulatory or other developments
affecting that sector. If an economic downturn occurs in a sector in which the
Fund’s investments are concentrated, the Fund may perform poorly during that
period.
Foreign Securities Risk — Investments in
foreign securities may be subject to more risks than those associated with U.S.
investments, including currency fluctuations, political and economic instability
and differences in accounting, auditing and financial reporting standards.
Foreign securities may be less liquid than domestic securities so that the Fund
may, at times, be unable to sell foreign securities at desirable times or
prices. In addition, emerging market securities involve greater risk and more
volatility than those of companies in more developed markets. Significant levels
of foreign taxes are also a risk related to foreign
investments.
Debt Securities Risk — Debt securities are
subject to credit risk, interest rate risk and liquidity risk. Credit risk is
the risk that the entity that issued a debt security may become unable to make
payments of principal and interest when due and includes the risk of default.
Interest rate risk is the risk of losses due to changes in interest rates.
Liquidity risk is the risk that the Fund may not be able to sell portfolio
securities because there are too few buyers for
them.
High Yield Bond Risk — Debt securities that are
rated below investment grade (commonly referred to as “junk bonds”) involve a
greater risk of default or price declines than investment grade securities. The
market for high-yield, lower rated securities may be smaller and less active,
causing market price volatility and limited liquidity in the secondary market.
This may limit the ability of a Fund to sell these securities at their fair
market values either to meet redemption requests, or in response to changes in
the economy or the financial markets.
|
|
|
| |
Meridian
Contrarian Fund |
| 12 |
| |
Performance
The bar chart and
table below show the Fund’s historical performance and provide an indication of
the risks of investing in the Fund. The bar chart shows changes in the
performance of the Fund’s Investor Class shares from
year‑to‑year. The performance of the Fund’s other share classes
would have differed from the Investor Class shares only to the extent that
such classes have higher expenses than the Investor Class shares, which
would have resulted in lower performance.
The table shows how the Fund’s
average annual returns compare with those of the Russell 2500® Index and the Russell
2500® Value
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
for the Fund may be obtained by visiting www.arrowmarkpartners.com/meridian
or by calling 1‑800‑446‑6662.
Year‑by‑Year
Total Returns as of 12/31
During
the period covered by this bar chart, the Fund’s Investor Class shares
highest
quarterly return was 29.41% (for the quarter
ended June 30, 2020); and the
lowest
quarterly return was –30.94% (for the
quarter ended March 31,
2020).
For
the period January 1, 2023 through September 30, 2023, the
total
return of the Fund’s Investor Class shares was
3.22%.
|
|
|
| |
|
| 13 |
| Meridian Contrarian Fund |
Average
Annual Total Returns
(For
the year ended December 31, 2022)
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
MERIDIAN
CONTRARIAN FUND
Investor
Class Shares (11/15/13) |
|
1
Year |
|
|
5
Year |
|
| Life of Class |
|
|
|
| |
Return
Before Taxes |
|
| (16.86 |
)% |
|
| 8.19% |
|
|
| 9.40% |
|
|
|
| |
Return
After Taxes on Distributions |
|
| (18.90 |
)% |
|
| 5.22% |
|
|
| 6.56% |
|
|
|
| |
Return
After Taxes on Distributions and Sale of Fund Shares1 |
|
| (8.50 |
)% |
|
| 6.05% |
|
|
| 6.98% |
|
|
|
| |
Class A
Shares (11/15/13) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Return
Before Taxes |
|
| (17.04 |
)% |
|
| 7.92% |
|
|
| 9.12% |
|
|
|
| |
Class C
Shares (07/01/15) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Return
Before Taxes |
|
| (17.66 |
)% |
|
| 7.18% |
|
|
| 8.58% |
|
|
|
| |
Russell
2500® Index
(reflects no deductions for fees, expenses or taxes) |
|
| (18.37 |
)% |
|
| 5.89% |
|
|
| 8.09% |
|
|
|
| |
Russell
2500® Value Index
(reflects no deduction for fees, expenses or taxes) |
|
| (13.09 |
)% |
|
| 4.75% |
|
|
| 10.81% |
|
1 |
The
Fund’s returns after taxes on distributions and sale of Fund shares may be
higher than its returns after taxes on distributions because it includes
the effect of a tax benefit an investor may receive resulting from the
capital losses that would have been incurred on the sale of the
shares. |
After‑tax
returns are calculated using the historical highest individual federal marginal
income tax rates for the character of income in question (as ordinary income or
long-term gain) and do not reflect the impact of state and local
taxes. Actual
after‑tax returns depend on an investor’s tax situation and may differ from
those shown. After‑tax returns shown are not relevant to investors who hold
their Fund shares through tax‑advantaged arrangements such as 401(k) plans or
individual retirement accounts.
Management
ArrowMark
Colorado Holdings, LLC
Portfolio
Managers
James
England, CFA, serves as Portfolio Manager of the Fund. Mr. England, who
joined the Investment Adviser in 2013 when it acquired the asset management
business of the previous investment adviser to the Fund, where he worked as an
investment professional since 2001, has served as a Portfolio Manager of the
Fund since December 2003.
Purchase
and Sale of Fund Shares
The
following table shows the minimum investment amounts for purchasing share
classes of the Meridian Contrarian Fund.
|
|
|
|
|
| |
Class |
|
Minimum Initial Investment |
|
Minimum Subsequent Investment |
|
Distribution Fee |
|
|
| |
Class A Shares |
|
$2,5001 |
|
$50 |
|
0.25% |
|
|
| |
Class C Shares |
|
$2,5001 |
|
$50 |
|
1.00% |
|
|
| |
Investor Class Shares |
|
$2,500 |
|
$50 |
|
NONE |
1 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
|
|
|
| |
Meridian
Contrarian Fund |
|
14 |
|
|
The
Fund reserves the right to change the amount of these minimums from time to time
or to waive them in whole or in part if, in the Investment Adviser’s or the
Fund’s opinion, the investor has adequate intent and availability of assets to
reach a future level of investment in the Fund that is equal to or greater than
the minimum. Shareholders will be notified of any changes to the Fund’s
investment minimums via a supplement to the Fund’s prospectus.
You
may purchase, redeem or exchange shares of the Funds on any business day, which
is any day the New York Stock Exchange is open for business. Generally, you
may purchase, redeem or exchange shares only through institutional channels,
such as financial intermediaries and retirement platforms. The minimum
investment for Class A shares, Class C shares, and Investor
Class shares is $2,500 per Fund account for non‑retirement accounts.
Certain tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to
a $500 minimum. Investors in a defined contribution plan through a third-party
administrator should refer to their plan document or contact their plan
administrator for additional information. Accounts that are a part of certain
wrap programs may not be subject to these minimums. Investors should refer to
their intermediary for additional information.
Tax
Information
Any
distributions you receive from a Fund may be taxable as ordinary income, capital
gains, qualified dividend income, or section 199A dividends, except when your
investment is in an IRA, 401(k) or other tax advantaged investment plan.
Withdrawals from such a tax‑advantaged investment plan are subject to special
tax rules.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of a Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related entities 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 advisor to recommend the Fund or one share class over
another investment or share class, as applicable. Ask your advisor or financial
intermediary for more information.
|
|
|
| |
| |
15 |
|
Meridian Contrarian Fund |
FUND
SUMMARY
MERIDIAN
HEDGED EQUITY FUND (formerly,
Meridian Enhanced Equity Fund)
Investment
Objective
The
MERIDIAN HEDGED EQUITY
FUND seeks long-term growth of
capital.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees
(fees
paid directly from your investment) |
|
|
Class A
Shares |
|
|
|
Class C Shares |
|
|
|
Investor Class Shares |
1 |
|
|
| |
Maximum
Sales Charge (Load) on Purchases |
|
| 5.75% |
|
|
| NONE |
|
|
| NONE |
|
|
|
| |
Maximum
Deferred Sales Charge (Load) |
|
| NONE |
|
|
| 1.00% |
|
|
| NONE |
|
|
|
| |
Redemption
Fee (as a percentage of amount redeemed, if you sell or exchange your
shares within 60 days of purchase) |
|
| 2.00% |
|
|
| NONE |
|
|
| 2.00% |
|
|
|
| |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Management
Fees |
|
| 0.88% |
|
|
| 0.88% |
|
|
| 0.88% |
|
|
|
| |
Distribution
(Rule 12b‑1) Fees |
|
| 0.25% |
|
|
| 1.00% |
|
|
| 0.00% |
|
|
|
| |
Other
Expenses |
|
| 0.51% |
|
|
| 0.39% |
|
|
| 0.45% |
|
|
|
| |
Acquired
Fund Fees and Expenses |
|
| 0.01% |
|
|
| 0.01% |
|
|
| 0.01% |
|
|
|
| |
Total
Annual Fund Operating Expenses |
| |
1.65% |
|
| |
2.28% |
|
| |
1.34% |
|
|
|
| |
Fee
Waivers and/or Expense Reimbursements and Recoupment |
|
| (0.14% |
) |
|
| (0.02% |
) |
|
| (0.08% |
) |
|
|
| |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement and Recoupment2,3 |
| |
1.51% |
|
| |
2.26% |
|
| |
1.26% |
|
1 |
You
may be required to pay commissions and/or other forms of compensation to a
broker for transactions in Investor Class shares, which are not
reflected in the tables or examples
below. |
2 |
The
Investment Adviser has agreed to waive a portion of the investment
advisory and/or administration fees and/or reimburse other expenses of the
Meridian Hedged Equity Fund so that the ratio of expenses to average net
assets of the Meridian Hedged Equity Fund (excluding Acquired Fund Fees
and Expenses, brokerage expenses, dividend expenses on securities sold
short and interest expenses on short sales, taxes, and extraordinary
expenses) does not exceed 1.50% for Class A, 2.25% for Class C
and 1.25% for Investor Class. These expense limitations may not be amended
or withdrawn until one year
after the date of this prospectus without the consent of
the Board of Directors. |
|
|
|
| |
Meridian
Hedged Equity Fund |
| 16 |
| |
3 |
For
a period not to exceed three (3) years on which a waiver of
reimbursement in excess of the expense limitation is made by the
Investment Adviser, the Fund will carry forward, and may repay the
Investment Adviser such amounts; provided, however, that such recapture
payments do not cause the Fund’s expense ratio (after recapture) to exceed
the lesser of (i) the expense limitation in effect at the time of the
waiver or (ii) the expense limitation in effect at the time of the
recapture. |
Example
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in Class A shares, Class C shares or Investor
Class shares of 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, the Fund’s operating expenses remain the
same and the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and Recoupment shown above will only be in place for the
length of the current commitment. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
Class A Shares |
| $ |
720 |
|
| $ |
1,053 |
|
| $ |
1,409 |
|
| $ |
2,407 |
|
|
|
|
| |
Class C Shares |
| $ |
329 |
|
| $ |
710 |
|
| $ |
1,218 |
|
| $ |
2,382 |
|
|
|
|
| |
Investor Class Shares |
| $ |
128 |
|
| $ |
417 |
|
| $ |
727 |
|
| $ |
1,606 |
|
You
would pay the following expenses if you did not redeem your shares of the
Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
Class A Shares |
| $ |
720 |
|
| $ |
1,053 |
|
| $ |
1,409 |
|
| $ |
2,407 |
|
|
|
|
| |
Class C Shares |
| $ |
229 |
|
| $ |
710 |
|
| $ |
1,218 |
|
| $ |
2,382 |
|
|
|
|
| |
Investor Class Shares |
| $ |
128 |
|
| $ |
417 |
|
| $ |
727 |
|
| $ |
1,606 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the Fund’s
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the Example, affect the Fund’s performance.
For the fiscal year ended June 30, 2023, the Fund’s portfolio turnover rate
was 43% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to maximize total return by investing primarily in a diversified
portfolio of equity securities of U.S. companies that have the potential for
capital appreciation. Under normal circumstances, the Fund
|
|
|
| |
|
| 17 |
| Meridian Hedged Equity
Fund |
will
invest at least 80% of its net assets in long or short positions in equity
securities. Equity securities include, but are not limited to, common and
preferred stocks as well as convertible securities, such as options, in domestic
and foreign companies. The Fund often sells exchange traded call options against
40% to 60% of the underlying equity holdings. This hedging strategy seeks to use
the option premiums collected, cash flow and income to the Fund, to reduce risk
and volatility associated with typical long-only equity investment strategies.
The Fund may invest in securities of companies with any capitalization across a
broad range of industries. These may include companies that are relatively small
in terms of assets, revenues and earnings. The mix of the Fund’s investments at
any time will depend on the industries and types of securities the Investment
Adviser believes hold the most potential for achieving the Fund’s investment
objective. The Fund may invest up to 25% of its total assets, calculated at the
time of purchase, in securities of foreign companies, including emerging market
companies. The Fund may also invest its assets in debt or fixed income
securities including higher yield, higher risk, lower rated or unrated corporate
bonds commonly referred to as “junk bonds.” These are bonds that are rated Ba or
below by Moody’s Investors Service, Inc. (“Moody’s”) or BB or below by Standard
and Poor’s Ratings Services (“S&P”) or are in default or unrated but of
comparable quality as determined by the Investment Adviser. The Fund generally
sells investments when the Investment Adviser concludes that the long-term
growth prospects of the company have deteriorated, or the issuer’s circumstances
or the political or economic outlook relative to the security have changed, and
better investment opportunities exist in other
securities.
Principal
Investment Risks
There
are risks involved with any investment. The principal risks associated with an
investment in the Fund, which could adversely affect its net asset value, yield
and return, are set forth below. Please see the section “Further Information
About Principal Risks” in this Prospectus for a more detailed discussion of
these risks and other factors you should carefully consider before deciding to
invest in the Fund.
An investment in the Fund may lose money and
is not a deposit of a bank or insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental
agency.
Equity Securities Risk — Equity securities
fluctuate in price and value in response to many factors including historical
and prospective earnings of the issuer and its financial condition, the value of
its assets, general economic conditions, interest rates, investors’ perceptions,
market liquidity, natural disasters and the spread of infectious disease or
other public health issues.
The
impact of COVID‑19, (and the variants of such virus) and other epidemics and
pandemics that may arise in the future, could affect the economies of many
nations, individual companies, their securities (including equity and debt), and
the market in general in ways that cannot necessarily be foreseen at the present
time. Health crises caused by the recent coronavirus outbreak may exacerbate
other pre‑existing political, social, financial, and economic risks in certain
countries. The impact of the outbreak may last for an extended period of
time.
Small and Medium Company Risk — Generally, the
smaller the capitalization of a company, the greater the risk associated with an
investment in the company. The stock prices of small- and mid‑capitalization and
newer companies tend to fluctuate more than those of larger capitalized and/or
more established companies and generally have a smaller market for their shares
than do large capitalization companies.
|
|
|
| |
Meridian
Hedged Equity Fund |
| 18 |
| |
Large Company Risk — Larger, more established
companies may be unable to respond quickly to new competitive challenges such as
changes in consumer tastes or innovative smaller competitors. Also, large‑cap
companies are sometimes unable to attain the high growth rates of successful,
smaller companies, especially during extended periods of economic
expansion.
Investment Strategy Risk — The Investment
Adviser uses the Fund’s principal investment strategies and other investment
strategies to seek to achieve the Fund’s investment objective of long-term
growth of capital along with income as a component of total return. There is no
assurance that the Investment Adviser’s investment strategies or securities
selection method will achieve that investment
objective.
Market Risk — The value of the Fund’s
investments will fluctuate in response to the activities of individual companies
and general stock market and economic conditions. As a result, the value of your
investment in the Fund may be more or less than your purchase
price.
Securities Lending Risk — The Fund may engage
in securities lending. Securities lending involves the risk that the Fund may
lose money because the borrower of the loaned securities fails to return the
securities in a timely manner or at all. The Fund could also lose money in the
event of a decline in the value of collateral provided for loaned securities or
a decline in the value of any investments made with cash collateral. These
events could also trigger adverse tax consequences for the
Fund.
Sector Concentration Risk — The Fund may
concentrate its investments in companies that are in a single sector or related
sector. Concentrating investments in a single sector may make the Fund more
susceptible to adverse economic, business, regulatory or other developments
affecting that sector. If an economic downturn occurs in a sector in which the
Fund’s investments are concentrated, the Fund may perform poorly during that
period. The Fund anticipates it will typically invest a significant portion of
its assets in the information technology (IT) sector and, therefore, the Fund’s
performance could be negatively impacted by events affecting this
sector.
The
information technology sector includes, for example, internet, semiconductor,
software, hardware, and technology equipment companies. The IT sector may be
adversely affected by, among other things, the supply and demand for specific
products and services, the pace of technological development, and government
regulation.
Options Risk — The success of the Fund’s
investment in options depends upon many factors, such as the price of the
options, which is a function of interest rates, volatility, dividends, the
exercise price, stock price and other market factors. These factors may change
rapidly over time.
The
principal risk associated with writing put options, is that the Fund assumes the
risk that it will have to purchase the underlying security at an exercise price
that may be higher than the market price of the security. If the market price of
the underlying security declines, the Fund would expect to suffer a loss.
However, the premium the Fund received for writing the put should offset a
portion of the decline.
The
principal risk associated with purchasing options is that price valuations or
market movements may not justify purchasing the options, or, if purchased, the
options may expire unexercised, causing the Fund to lose the premium paid (i.e., incur the cost of the options but not
the attendant benefits).
|
|
|
| |
|
| 19 |
| Meridian Hedged Equity
Fund |
The
principal risk associated with writing covered call options is that the Fund
will be required to sell the underlying security (i.e., have the security “called”) and,
therefore, will not participate in gains if the stock price exceeds the exercise
price generally at the expiration date of the
option.
The
Fund’s investment in options may also result in reduced flexibility in purchases
and sales of portfolio securities. Because the Fund may hold the securities
underlying the options held or sold by the Fund, the Fund may be less likely to
sell such securities in its portfolio to take advantage of new investment
opportunities.
Foreign Securities Risk — Investments in
foreign securities may be subject to more risks than those associated with U.S.
investments, including currency fluctuations, political and economic instability
and differences in accounting, auditing and financial reporting standards.
Foreign securities may be less liquid than domestic securities so that the Fund
may, at times, be unable to sell foreign securities at desirable times or
prices. In addition, emerging market securities involve greater risk and more
volatility than those of companies in more developed markets. Significant levels
of foreign taxes are also a risk related to foreign
investments.
Debt Securities Risk — Debt securities are
subject to credit risk, interest rate risk and liquidity risk. Credit risk is
the risk that the entity that issued a debt security may become unable to make
payments of principal and interest when due and includes the risk of default.
Interest rate risk is the risk of losses due to changes in interest rates.
Liquidity risk is the risk that the Fund may not be able to sell portfolio
securities because there are too few buyers for
them.
High Yield Bond Risk — Debt securities that are
rated below investment grade (commonly referred to as “junk bonds”) involve a
greater risk of default or price declines than investment grade securities. The
market for high-yield, lower rated securities may be smaller and less active,
causing market price volatility and limited liquidity in the secondary market.
This may limit the ability of a Fund to sell these securities at their fair
market values either to meet redemption requests, or in response to changes in
the economy or the financial markets.
Income Risk — The Fund may not be able to pay
distributions or may have to reduce its distribution level if the amount of
dividends and/or interest received by the Fund on the securities it holds
declines or is insufficient to pay such distributions.
|
|
|
| |
Meridian
Hedged Equity Fund |
| 20 |
| |
Performance
The bar chart and
table below show the Fund’s historical performance and provides an indication of
the risks of investing in the Fund. The bar chart shows changes in the
performance of the Fund’s Investor Class shares from
year‑to‑year. The performance of the Fund’s other share classes
would have differed from the Investor Class shares only to the extent that
such classes’ shares have higher expenses than the Investor Class shares,
which would have resulted in lower
performance.
The table shows how the Fund’s
average annual returns compare with those of the Fund’s benchmark, the S&P
500®
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
for the Fund may be obtained by visiting www.arrowmarkpartners.com/meridian
or by calling 1‑800‑446‑6662.
Year‑by‑Year
Total Returns as of 12/31
During
the period covered by this bar chart, the Fund’s Investor Class shares
highest
quarterly return was 21.54% (for the quarter
ended June 30, 2020); and the
lowest
quarterly return was –18.51% (for the
quarter ended December 31,
2018).
For
the period January 1, 2023 through September 30, 2023, the
total
return of the Fund’s Investor Class shares was
9.16%.
|
|
|
| |
|
| 21 |
| Meridian Hedged Equity
Fund |
Average
Annual Total Returns
(For
the year ended December 31, 2022)
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
MERIDIAN
HEDGED EQUITY FUND
Investor
Class Shares (11/15/13) |
|
1
Year |
|
|
5
Year |
|
| Life of Class |
|
|
|
| |
Return
Before Taxes |
|
| (16.62 |
)% |
|
| 11.69% |
|
|
| 11.15% |
|
|
|
| |
Return
After Taxes on Distributions |
|
| (18.71 |
)% |
|
| 6.53% |
|
|
| 7.58% |
|
|
|
| |
Return
After Taxes on Distributions and Sale of Fund Shares1 |
|
| (9.03 |
)% |
|
| 8.21% |
|
|
| 8.22% |
|
|
|
| |
Class A
Shares (11/15/13) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Return
Before Taxes |
|
| (16.85 |
)% |
|
| 11.39% |
|
|
| 10.86% |
|
|
|
| |
Class C
Shares (07/01/15) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
Return
Before Taxes |
|
| (17.21 |
)% |
|
| 10.92% |
|
|
| 11.24% |
|
|
|
| |
S&P
500® Index
(reflects no deduction for fees, expenses, or taxes) |
|
| (18.11 |
)% |
|
| 9.42% |
|
|
| 6.79% |
|
|
|
| |
Cboe
S&P 500 BuyWrite Index (BXM) |
|
| (11.37 |
)% |
|
| 2.73% |
|
|
| 4.84% |
|
1 |
The
Fund’s returns after taxes on distributions and sale of Fund shares may be
higher than its returns after taxes on distributions because it includes
the effect of a tax benefit an investor may receive resulting from the
capital losses that would have been incurred on the sale of the
shares. |
After‑tax
returns are calculated using the historical highest individual federal marginal
income tax rates for the character of income in question (as ordinary income or
long-term gain) and do not reflect the impact of state and local
taxes. Actual
after‑tax returns depend on an investor’s tax situation and may differ from
those shown. After‑tax returns shown are not relevant to investors who hold
their Fund shares through tax‑advantaged arrangements such as 401(k) plans or
individual retirement accounts.
Management
ArrowMark
Colorado Holdings, LLC
Portfolio
Manager
Clay
Freeman serves as Portfolio Manager of the Fund. Mr. Freeman, who joined
the Investment Adviser in 2008, has served as Portfolio Manager of the Fund
since September 3, 2019.
Purchase
and Sale of Fund Shares
The
following table shows the minimum investment amounts for purchasing share
classes of the Meridian Hedged Equity Fund.
|
|
|
|
|
| |
Class |
|
Minimum Initial Investment |
|
Minimum Subsequent Investment |
|
Distribution Fee |
|
|
| |
Class A Shares |
|
$2,5001 |
|
$50 |
|
0.25% |
|
|
| |
Class C Shares |
|
$2,5001 |
|
$50 |
|
1.00% |
|
|
| |
Investor Class Shares |
|
$2,500 |
|
$50 |
|
NONE |
1 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
|
|
|
| |
Meridian
Hedged Equity Fund |
|
22 |
|
|
The
Fund reserves the right to change the amount of these minimums from time to time
or to waive them in whole or in part if, in the Investment Adviser’s or the
Fund’s opinion, the investor has adequate intent and availability of assets to
reach a future level of investment in the Fund that is equal to or greater than
the minimum. Shareholders will be notified of any changes to the Fund’s
investment minimums via a supplement to the Fund’s prospectus.
You
may purchase, redeem or exchange shares of the Funds on any business day, which
is any day the New York Stock Exchange is open for business. Generally, you
may purchase, redeem or exchange shares only through institutional channels,
such as financial intermediaries and retirement platforms. The minimum
investment for Class A shares, Class C shares, and Investor
Class shares is $2,500 per Fund account for non‑retirement accounts.
Certain tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to
a $500 minimum. Investors in a defined contribution plan through a third-party
administrator should refer to their plan document or contact their plan
administrator for additional information. Accounts that are a part of certain
wrap programs may not be subject to these minimums. Investors should refer to
their intermediary for additional information.
Tax
Information
Any
distributions you receive from a Fund may be taxable as ordinary income, capital
gains, qualified dividend income, or section 199A dividends, except when your
investment is in an IRA, 401(k) or other tax advantaged investment plan.
Withdrawals from such a tax‑advantaged investment plan are subject to special
tax rules.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of a Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related entities 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 advisor to recommend the Fund or one share class over
another investment or share class, as applicable. Ask your advisor or financial
intermediary for more information.
|
|
|
| |
| |
23 |
|
Meridian Hedged Equity
Fund |
FUND
SUMMARY
MERIDIAN
SMALL CAP GROWTH
FUND
Investment
Objective
The
MERIDIAN SMALL CAP
GROWTH FUND seeks long-term growth of capital by
investing primarily in equity securities of small capitalization companies.
Fees
and Expenses of the Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund.
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees
(fees
paid directly from your investment) |
|
|
Class A Shares |
1 |
|
|
Class C Shares |
1 |
|
|
Investor Class Shares |
1,2 |
|
|
| |
Maximum
Sales Charge (Load) on Purchases |
|
|
5.75% |
|
|
|
NONE |
|
|
|
NONE |
|
|
|
| |
Maximum
Deferred Sales Charge (Load) |
|
|
NONE |
|
|
|
1.00% |
|
|
|
NONE |
|
|
|
| |
Redemption
Fee (as a percentage of amount redeemed, if you sell or exchange your
shares within 60 days of purchase) |
|
|
2.00% |
|
|
|
NONE |
|
|
|
2.00% |
|
|
|
| |
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Management
Fees |
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
|
|
| |
Distribution
(Rule 12b‑1) Fees |
|
|
0.25% |
|
|
|
1.00% |
|
|
|
0.00% |
|
|
|
| |
Other
Expenses |
|
|
0.25% |
|
|
|
0.23% |
|
|
|
0.24% |
|
|
|
| |
Total
Annual Fund Operating Expenses3,4,5 |
|
|
1.50% |
|
|
|
2.23% |
|
|
|
1.24% |
|
1 |
As of the date of this prospectus,
Class A, Class C and Investor Class shares of the Meridian
Small Cap Growth Fund are no longer offered to the public, except in
limited circumstances. |
2 |
You may be required to pay commissions
and/or other forms of compensation to a broker for transactions in
Investor Class shares, which are not reflected in the tables or
examples below. |
3 |
Please
note that Total Annual Fund Operating Expenses in the table above may not
correlate to the ratio of Operating Expenses Before
Waivers/Reimbursements/Reductions to Average Net Assets found in the
“Financial Highlights” section of this prospectus since the latter
reflects the operating expenses of the Fund and does not include Acquired
Fund Fees and Expenses (if
any). |
4 |
The
Investment Adviser has agreed to waive a portion of the investment
advisory and/or administration fees and/or reimburse other expenses of the
Meridian Small Cap Growth Fund so that the ratio of expenses to average
net assets of the Meridian Small Cap Growth Fund (excluding Acquired Fund
Fees and Expenses, brokerage expenses, dividend expenses on securities
sold short and interest expenses on short sales, taxes, and extraordinary
expenses) does not exceed 1.50% for Class A, 2.25% for Class C
and 1.25% for Investor Class. These expense limitations may not be amended
or withdrawn until one year
after the date of this prospectus without the consent of
the Board of Directors. |
|
|
|
| |
Meridian
Small Cap Growth Fund |
|
24 |
|
|
5 |
For
a period not to exceed three (3) years on which a waiver of
reimbursement in excess of the expense limitation is made by the
Investment Adviser, the Fund will carry forward, and may repay the
Investment Adviser such amounts; provided, however, that such recapture
payments do not cause the Fund’s expense ratio (after recapture) to exceed
the lesser of (i) the expense limitation in effect at the time of the
waiver or (ii) the expense limitation in effect at the time of the
recapture. |
Example
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in Class A shares, Class C shares or Investor
Class shares of 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, the Fund’s operating expenses remain the
same and the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and Recoupment shown above will only be in place for the
length of the current commitment. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
|
Class A Shares |
|
|
$ |
719 |
|
|
$ |
1,022 |
|
|
$ |
1,346 |
|
|
$ |
2,262 |
|
|
|
|
| |
|
Class C Shares |
|
|
$ |
326 |
|
|
$ |
697 |
|
|
$ |
1,195 |
|
|
$ |
2,294 |
|
|
|
|
| |
|
Investor Class Shares |
|
|
$ |
126 |
|
|
$ |
393 |
|
|
$ |
680 |
|
|
$ |
1,500 |
|
You
would pay the following expenses if you did not redeem your shares of the Fund:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Class |
|
|
1
Year |
|
|
3
Years |
|
|
5
Years |
|
|
10
Years |
|
|
|
|
| |
|
Class A Shares |
|
|
$ |
719 |
|
|
$ |
1,022 |
|
|
$ |
1,346 |
|
|
$ |
2,262 |
|
|
|
|
| |
|
Class C Shares |
|
|
$ |
226 |
|
|
$ |
697 |
|
|
$ |
1,195 |
|
|
$ |
2,294 |
|
|
|
|
| |
|
Investor Class Shares |
|
|
$ |
126 |
|
|
$ |
393 |
|
|
$ |
680 |
|
|
$ |
1,500 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when the Fund’s
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the Example, affect the Fund’s performance.
For the fiscal year ended June 30, 2023, the Fund’s portfolio turnover rate
was 53% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks long-term growth of capital by investing, under normal circumstances,
at least 80% of its net assets, including the amount of any borrowings for
investment purposes, in equity securities (including common stocks, preferred
stocks and securities convertible into common and preferred stocks) of U.S.
small capitalization companies. In the view of the Investment Adviser, small
capitalization companies are defined as
|
|
|
| |
| |
25 |
|
Meridian Small Cap Growth
Fund |
companies
whose total market capitalization falls within the range of companies included
in the Russell 2000®
Growth Index or the S&P SmallCap 600® Index at the time of
purchase. Both indices are broad indices of small capitalization stocks. As of
September 30, 2023, the market capitalization of the companies in these
indices ranged from approximately $26 million to $15 billion. The Fund
may also invest up to 20% of its net assets in securities of companies of any
market capitalization.
The
portfolio managers apply a “bottom up” fundamental research process in selecting
investments. In other words, the portfolio managers analyze individual companies
to determine if a company presents an attractive investment opportunity and if
it is consistent with the Fund’s investment strategies and policies. The Fund
generally sells investments when the Investment Adviser concludes that better
investment opportunities exist in other securities, the security is fully
valued, or the issuer’s circumstances or the political or economic outlook have
changed.
Principal
Investment Risks
There
are risks involved with any investment. The principal risks associated with an
investment in the Fund, which could adversely affect its net asset value, yield
and return, are set forth below. Please see the section “Further Information
About Principal Risks” in this Prospectus for a more detailed discussion of
these risks and other factors you should carefully consider before deciding to
invest in the Fund.
An investment in the Fund may lose money and
is not a deposit of a bank or insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency.
Equity Securities Risk — Equity securities
fluctuate in price and value in response to many factors including historical
and prospective earnings of the issuer and its financial condition, the value of
its assets, general economic conditions, interest rates, investors’ perceptions,
market liquidity, natural disasters and the spread of infectious disease or
other public health issues.
The
impact of COVID‑19, (and the variants of such virus) and other epidemics and
pandemics that may arise in the future, could affect the economies of many
nations, individual companies, their securities (including equity and debt), and
the market in general in ways that cannot necessarily be foreseen at the present
time. Health crises caused by the recent coronavirus outbreak may exacerbate
other pre‑existing political, social, financial, and economic risks in certain
countries. The impact of the outbreak may last for an extended period of time.
Small Company Risk — Generally, the smaller the
capitalization of a company, the greater the risk associated with an investment
in the company. The stock prices of small capitalization and newer companies
tend to fluctuate more than those of larger capitalized and/or more established
companies and generally have a smaller market for their shares than do large
capitalization companies.
Growth Securities Risk — Because growth
securities typically trade at a higher multiple of earnings than other types of
securities, the market values of growth securities may be more sensitive to
changes in current or expected earnings than the market values of other types of
securities. In addition, growth securities, at times, may not perform as well as
value securities or the stock market in general, and may be out of favor with
investors for varying periods of time.
|
|
|
| |
Meridian
Small Cap Growth Fund |
|
26 |
|
|
Investment Strategy Risk — The Investment
Adviser uses the Fund’s principal investment strategies and other investment
strategies to seek to achieve the Fund’s investment objective of long-term
growth of capital by investing primarily in equity securities of small
capitalization companies. There is no assurance that the Investment Adviser’s
investment strategies or securities selection method will achieve that
investment objective.
Market Risk — The value of the Fund’s
investments will fluctuate in response to the activities of individual companies
and general stock market and economic conditions. As a result, the value of your
investment in the Fund may be more or less than your purchase price.
Securities Lending Risk — The Fund may engage
in securities lending. Securities lending involves the risk that the Fund may
lose money because the borrower of the loaned securities fails to return the
securities in a timely manner or at all. The Fund could also lose money in the
event of a decline in the value of collateral provided for loaned securities or
a decline in the value of any investments made with cash collateral. These
events could also trigger adverse tax consequences for the Fund.
Sector Concentration Risk — The Fund may
concentrate its investments in companies that are in a single sector or related
sector. Concentrating investments in a single sector may make the Fund more
susceptible to adverse economic, business, regulatory or other developments
affecting that sector. If an economic downturn occurs in a sector in which the
Fund’s investments are concentrated, the Fund may perform poorly during that
period. The Fund anticipates it will typically invest a significant portion of
its assets in the industrials sector and the health care sector and, therefore,
the Fund’s performance could be negatively impacted by events affecting these
sectors.
Industrials Sector Risk — The Fund anticipates
it will typically invest a significant portion of its assets in the industrials
sector and, therefore, the Fund’s performance could be negatively impacted by
events affecting the industrials sector. The industrials sector may be adversely
affected by, among other things, changes in the supply of and demand for
products and services, product obsolescence, claims for environmental damage or
product liability and general economic conditions.
Healthcare Sector Risk — The Fund anticipates
it will typically invest a significant portion of its assets in the healthcare
sector and, therefore, the Fund’s performance could be negatively impacted by
events affecting the healthcare sector. The health care sector is subject to
extensive government regulation and its profitability can be adversely affected
by, among other things, restrictions on government reimbursement for medical
expenses, rising costs of medical products and services, and increased emphasis
on the delivery of healthcare through outpatient services.
|
|
|
| |
| |
27 |
|
Meridian Small Cap Growth
Fund |
Performance
The bar chart
and table below show the Fund’s historical performance and provide an indication
of the risks of investing in the Fund. The bar chart shows changes in the
performance of the Fund’s Investor Class shares from
year‑to‑year. The performance of the Fund’s other share classes
would have differed from the Investor Class shares only to the extent that
such classes have higher expenses than the Investor Class shares, which
would have resulted in lower performance.
The
Fund’s Benchmark is the Russell 2000® Growth Index. Updated
performance information for the Fund may be obtained by visiting www.arrowmarkpartners.com/meridian
or by calling 1‑800‑446‑6662.
Year‑by‑Year
Total Returns as of 12/31
During
the period covered by this bar chart, the Fund’s Investor Class shares
highest
quarterly return was 33.61% (for the quarter
ended June 30, 2020); and the
lowest
quarterly return was –31.61% (for the
quarter ended March 31, 2020).
For
the period January 1, 2023 through September 30, 2023, the
total
return of the Fund’s Investor Class shares was
0.38%.
|
|
|
| |
Meridian
Small Cap Growth Fund |
|
28 |
|
|
Average
Annual Total Returns
(For
the year ended December 31, 2022)
|
|
|
|
|
|
|
|
|
|
|
| |
MERIDIAN
SMALL CAP GROWTH
FUND
Investor
Class Shares (12/16/13) |
|
1
Year |
|
|
5
Year |
|
|
Life of Class |
|
|
|
| |
Return
Before Taxes |
|
|
(24.79 |
)% |
|
|
4.41% |
|
|
|
8.83% |
|
|
|
| |
Return
After Taxes on Distributions |
|
|
(27.06 |
)% |
|
|
1.18% |
|
|
|
6.59% |
|
|
|
| |
Return
After Taxes on Distributions and Sale of Fund Shares1 |
|
|
(13.08 |
)% |
|
|
3.23% |
|
|
|
6.88% |
|
|
|
| |
Class A
Shares (12/16/13) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Return
Before Taxes |
|
|
(24.95 |
)% |
|
|
4.15% |
|
|
|
8.55% |
|
|
|
| |
Class C
Shares (07/01/15) |
|
|
|
| |
|
|
| |
|
| |
|
|
| |
Return
Before Taxes |
|
|
(25.53 |
)% |
|
|
3.41% |
|
|
|
5.60% |
|
|
|
| |
Russell
2000® Growth Index
(reflects no deductions for fees, expenses or taxes) |
|
|
(26.36 |
)% |
|
|
3.51% |
|
|
|
6.43% |
|
1 |
The
Fund’s returns after taxes on distributions and sale of Fund shares may be
higher than its returns after taxes on distributions because it includes
the effect of a tax benefit an investor may receive resulting from the
capital losses that would have been incurred on the sale of the
shares. |
After‑tax
returns are calculated using the historical highest individual federal marginal
income tax rates for the character of income in question (as ordinary income or
long-term gain) and do not reflect the impact of state and local
taxes. Actual
after‑tax returns depend on an investor’s tax situation and may differ from
those shown. After‑tax returns shown are not relevant to investors who hold
their Fund shares through tax‑advantaged arrangements such as 401(k) plans or
individual retirement accounts.
Management
ArrowMark
Colorado Holdings, LLC
Portfolio
Managers
Chad
Meade serves as a Co‑Portfolio Manager of the Fund. Mr. Meade, who joined
the Investment Adviser in 2013, has served as a Co‑Portfolio Manager of the Fund
since its inception in December 2013.
Brian
Schaub, CFA, serves as a Co‑Portfolio Manager of the Fund. Mr. Schaub, who
joined the Investment Adviser in 2013, has served as a Co‑Portfolio Manager of
the Fund since its inception in December 2013.
Purchase
and Sale of Fund Shares
The
Meridian Small Cap Growth Fund no longer accepts offers to purchase
Class A, Class C, and Investor Class shares of the Fund, unless
the purchase is made pursuant to or by:
• |
|
Current
Class A, Class C, and Investor
Class shareholders; |
• |
|
Financial
intermediaries and advisors investing on behalf of clients currently
invested in the Fund; |
|
|
|
| |
|
| 29 |
| Meridian Small Cap Growth
Fund |
• |
|
Sponsors
of wrap programs or model portfolios who include the Fund as part of a
discretionary fee‑ based program or model portfolio on behalf of current
and new clients with pre‑approval by the ArrowMark Colorado Holdings, LLC
(the “Adviser”); |
• |
|
Existing
and new participants in employer-sponsored retirement plans that currently
offer the Fund as an investment option; |
• |
|
Investment
consultants with clients currently invested in the Fund or an exception
request for a new client opportunity has been pre‑approved by the
Adviser. |
The
Fund will continue to offer Institutional Class shares as described in the
Fund’s prospectus and statement of additional information for that share class.
The Fund’s Legacy Class shares will continue to be closed to new investors
as described in the Fund’s prospectus and statement of additional information
for that share class.
The
Board of Directors (the “Board”) reserves the right to re‑open the Class A,
Class C, and Investor
Class shares
of the Fund to new investors at any time or to modify the extent to which future
sales of shares are limited. The Fund reserves the right to permit the
establishment of new accounts under circumstances not identified above, and to
reject any purchase order or rescind any exception listed in this supplement
that the Board determines does not benefit the Fund and its shareholders.
The
following table shows the minimum investment amounts for purchasing share
classes of the Meridian Small Cap Growth Fund.
|
|
|
|
|
| |
Class |
| Minimum Initial Investment |
| Minimum Subsequent Investment |
| Distribution Fee |
|
|
| |
Class A Shares |
| $2,5001 |
| $50 |
| 0.25% |
|
|
| |
Class C Shares |
| $2,5001 |
| $50 |
| 1.00% |
|
|
| |
Investor Class Shares |
| $2,500 |
| $50 |
| NONE |
1 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
The
Fund reserves the right to change the amount of these minimums from time to time
or to waive them in whole or in part if, in the Investment Adviser’s or the
Fund’s opinion, the investor has adequate intent and availability of assets to
reach a future level of investment in the Fund that is equal to or greater than
the minimum. Shareholders will be notified of any changes to the Fund’s
investment minimums via a supplement to the Fund’s prospectus.
You
may purchase, redeem or exchange shares of the Funds on any business day, which
is any day the New York Stock Exchange is open for business. Generally, you may
purchase, redeem or exchange shares only through institutional channels, such as
financial intermediaries and retirement platforms. The minimum investment for
Class A shares, Class C shares and Investor Class shares is
$2,500 per Fund account for non‑retirement accounts. Certain tax‑advantaged
retirement accounts or UGMA/UTMA accounts are subject to a $500 minimum.
Investors in a defined contribution plan through a third-party administrator
should refer to their plan document or contact their plan administrator for
additional information. Accounts that are a part of certain wrap programs may
not be subject to these minimums. Investors should refer to their intermediary
for additional information.
|
|
|
| |
Meridian
Small Cap Growth Fund |
| 30 |
| |
Tax
Information
Any
distributions you receive from a Fund may be taxable as ordinary income, capital
gains, qualified dividend income, or section 199A dividends, except when your
investment is in an IRA, 401(k) or other tax advantaged investment plan.
Withdrawals from such a tax‑advantaged investment plan are subject to special
tax rules.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of a Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related entities 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 advisor to recommend the Fund or one share class over
another investment or share class, as applicable. Ask your advisor or financial
intermediary for more information.
|
|
|
| |
|
| 31 |
| Meridian Small Cap Growth
Fund |
FURTHER
INFORMATION ABOUT THE FUNDS’ INVESTMENT
OBJECTIVES
AND PRINCIPAL INVESTMENT STRATEGIES
GENERAL
In
selecting investments to achieve each Funds’ investment objective, the
Investment Adviser considers issuer-specific criteria as well as the economic
outlook and political conditions. Such issuer-specific criteria include the
issuer’s growth relative to its price-earnings ratio, its financial strength and
management practices and abilities, including its competitive position, the
quality of its balance sheet and earnings, its future prospects, and the
potential for growth and stock appreciation, other enterprise and market
valuation criteria as well as the value of the investments relative to other
comparable investment alternatives.
The
proportions of a Fund’s assets invested in equity securities or cash
equivalents, particular industries, and specific securities will shift from time
to time in accordance with the Investment Adviser’s judgment. Each Fund’s
investment policies other than those listed as “fundamental” in the Statement of
Additional Information (“SAI”) may be changed by the Funds’ Board of Directors
(the “Board”) without shareholder approval. The investment policy of the
Meridian Small Cap Growth Fund concerning 80% of its “net assets, including the
amount of any borrowings for investment purposes,” and Meridian Hedged Equity
Fund concerning 80% of its “net assets” may also be changed by the Board without
shareholder approval, but shareholders would be given at least 60 days’ notice.
Each Fund’s investment objective is non‑fundamental and may be changed by the
Board without shareholder approval. Shareholders will receive at least 60 days’
prior notice of any change to a Fund’s investment objective. Any such changes
may result in a Fund having investment objectives or policies different from
those which
you
considered appropriate at the time you invested in the Fund.
Securities
are determined by the Investment Adviser to be “U.S.” (or “Non‑U.S.”) based on
the consideration of an issuer’s domicile, its principal place of business, its
primary stock exchange listing, the source of its revenue, the location of its
assets, its exposure to economic fortunes and risks of countries or geographic
regions outside the United States and other relevant factors.
An
investment or type of security specifically identified in the prospectus
generally reflects a principal investment (i.e., an investment in which a Fund generally
invests, or may invest, 10% or more of its total assets). Each Fund also may use
certain types of investments and investing techniques that are described in more
detail in the SAI. An investment or type of security only identified in the SAI
typically is treated as a non‑principal investment (i.e., an investment in which a Fund generally
invests less than 10% of its total assets).
The
Investment Adviser may actively trade portfolio securities, which may lead to
higher transaction costs that may affect a Fund’s performance. In addition,
active trading of portfolio securities may lead to higher taxes if your shares
are held in a taxable account.
The
Funds are authorized to engage in short sales to the maximum extent permissible
under applicable law. However, it is not anticipated that short sales will be a
material investment activity for any Fund.
32
MERIDIAN
GROWTH FUND
INVESTMENT
OBJECTIVE
The
MERIDIAN GROWTH FUND seeks
long-term growth of capital.
INVESTMENT
STRATEGIES
The
Fund seeks long-term growth of capital by investing primarily in a diversified
portfolio of publicly traded common stocks of U.S. companies. Under normal
circumstances, the Fund emphasizes small- and mid‑capitalization growth
companies that the Investment Adviser believes may have prospects for
above-average growth in revenues and earnings because of many factors, including
high sales growth, high unit growth, industry growth, high or improving returns
on assets and equity and a strong balance sheet. These may include companies
that are relatively small in terms of total assets, revenues and earnings. The
Fund may also invest in companies not meeting these criteria if the Investment
Adviser believes they represent favorable investment opportunities for the
Fund.
The
Fund may invest in securities of companies with any capitalization across a
broad range of industries, though it typically emphasizes small- and
mid‑capitalization companies. The Fund may also invest in debt and
equity-related securities (including convertible debt securities and warrants),
bonds rated A or better by Moody’s (or, if unrated, are considered by the
Investment Adviser to be of comparable quality), and securities of foreign
companies (denominated in U.S. dollars or foreign currencies), including
emerging market companies. The Fund may invest up to 25% of its total assets,
calculated at the time of purchase, in securities of foreign companies,
including emerging market companies.
The
mix of the Fund’s investments at any time will depend on the industries and
types of securities the
Investment
Adviser believes hold the most potential for achieving the investment objective
within the Fund’s investment strategies.
MERIDIAN
CONTRARIAN FUND
INVESTMENT
OBJECTIVE
The
MERIDIAN CONTRARIAN FUND seeks
long-term growth of capital.
INVESTMENT
STRATEGIES
The
Fund seeks long-term growth of capital by investing primarily in a diversified
portfolio of publicly traded common stocks of U.S. companies. Under normal
circumstances, the Fund invests in the stocks of businesses that are likely to
have recently underperformed their peers, or the market due to what the
Investment Adviser deems to be temporary operational issues. The Fund then
emphasizes stocks which the Investment Adviser believes are undervalued in
relation to the business’ (or issuer’s) long-term earnings power or asset value,
or the stock market in general. Securities in which the Fund invests may be
undervalued because of many factors, including market decline, poor economic
conditions, tax‑loss selling or actual or anticipated unfavorable developments
affecting the issuer of the security. Any or all of these factors may provide
buying opportunities at attractive prices compared to historical or current
market price-earnings ratios, book value, underlying asset value, or the
long-term earnings prospects of the company. In addition, the Fund’s policy of
investing in securities that may be temporarily out of favor differs from the
investment approach followed by many other mutual funds with a similar
investment objective, including the Meridian Growth Fund. Many such mutual funds
typically do not invest in securities that have declined sharply in price, are
not widely followed, or are issued by companies that have reported poor earnings
or have
33
suffered
a downturn in business. The Investment Adviser believes, however, that the
securities of companies that may be temporarily out of favor due to earnings
declines or other adverse developments may offer good investment opportunities
for the Fund.
The
Fund may invest in securities of companies with any capitalization across a
broad range of industries. The Fund may also invest in debt and equity-related
securities (such as convertible debt securities, bonds and warrants) and
securities of foreign companies (denominated in U.S. dollars or foreign
currencies), including emerging market companies. The Fund may invest up to 25%
of its total assets, calculated at the time of purchase, in securities of
foreign companies, including emerging market companies.
The
mix of the Fund’s investments at any time will depend on the industries and
types of securities the Investment Adviser believes hold the most potential for
achieving the Fund’s investment objective within the Fund’s investment
strategies. The Fund intends to invest at least 65% of its total assets in
common stocks and equity-related securities (such as convertible debt securities
and warrants).
The
Fund may invest up to 35% of its total assets in debt or fixed income
securities, including higher yield, higher risk, lower rated or unrated
corporate bonds, commonly referred to as “junk bonds.” These are bonds that are
rated Ba or below by Moody’s or BB or below by S&P, or are unrated but of
comparable quality as determined by the Investment Adviser. The Fund may invest
up to 10% of its total assets in securities rated below Ca by Moody’s or C by
S&P, or are unrated but of comparable quality as determined by the
Investment Adviser.
The
Fund may purchase high yield bonds that the Investment Adviser believes will
increase in value due to improvements in their credit quality or ratings,
anticipated declines in interest rates or improved business conditions for the
issuers.
MERIDIAN
HEDGED EQUITY FUND
INVESTMENT
OBJECTIVE
The
MERIDIAN HEDGED EQUITY
FUND seeks long-term growth of capital along with income as a
component of total return.
INVESTMENT
STRATEGIES
The
Fund seeks to maximize total return by investing primarily in a diversified
portfolio of equity securities. Under normal circumstances, these securities
will primarily be equity securities of U.S. companies that have the potential
for capital appreciation. In addition to common stocks, equity securities may
include, among other instruments, preferred stock as well as securities
convertible into common stock, such as options. The Fund may also invest in
securities of foreign companies (denominated in U.S. dollars or foreign
currencies), including emerging market companies. The Fund may invest up to 25%
of its total assets, calculated at the time of purchase, in securities of
foreign companies, including emerging market companies. The Fund often sells
exchange traded call options against 40% to 60% of the underlying equity
holdings. This hedging strategy seeks to use the option premiums collected, cash
flow and income to the Fund, to reduce risk and volatility associated with
typical long-only equity investment strategies.
Under
normal circumstances, the Fund will invest at least 80% of its net assets in
long or short positions in equity securities. Shareholders will receive at least
60 days’ prior notice of any change to the principal investment strategies
relating to the type of securities in which 80% of the value of the Fund’s net
assets must be invested. The Fund may invest in securities of companies with any
capitalization across a broad range of industries. The Fund may also invest a
portion of its assets in debt or fixed income securities, including higher
yield, higher risk, lower rated or unrated corporate bonds,
34
commonly
referred to as “junk bonds.” These are bonds that are rated Ba or below by
Moody’s or BB or below by S&P, are in default or are unrated but of
comparable quality as determined by the Investment Adviser.
The
mix of the Fund’s investments at any time will depend on the industries and
types of securities the Investment Adviser believes hold the most potential for
achieving the investment objective within the Fund’s investment strategy.
MERIDIAN
SMALL CAP GROWTH
FUND
INVESTMENT
OBJECTIVE
The
MERIDIAN SMALL CAP
GROWTH FUND seeks long-term growth of capital by
investing primarily in equity securities of small capitalization
companies.
INVESTMENT
STRATEGIES
The
Fund seeks long-term growth of capital by investing, under normal circumstances,
at least 80% of its net assets, including the amount of any borrowings for
investment purposes, in U.S. equity securities (including common stocks,
preferred stocks and securities convertible into common and preferred stocks) of
small capitalization companies. In the view of the Investment Adviser, small
capitalization companies are defined as companies whose total market
capitalization falls within the range of companies included in the Russell
2000® Growth Index or the
S&P SmallCap 600®
Index at the time of purchase. Both indices are broad indices of small
capitalization stocks. At September 30, 2023, the market capitalization of
the companies in these indices ranged from approximately $26 million to
$15 billion. The Fund may also invest up to 20% of its net assets in
securities of companies of any market capitalization.
The
portfolio managers apply a “bottom up” fundamental research process in selecting
investments. In other words, the portfolio managers analyze individual companies
to determine if a company presents an attractive investment opportunity and if
it is consistent with the Fund’s investment strategies and policies. The Fund
generally sells investments when the Investment Adviser concludes that better
investment opportunities exist in other securities, the security is fully
valued, or the issuer’s circumstances or the political or economic outlook have
changed.
TEMPORARY
INVESTMENTS
When
the Investment Adviser concludes, on the basis of its analyses of the economy,
political conditions, or its own valuation guidelines and standards, that
general market or other conditions warrant the reduction of some or all of a
Fund’s equity securities holdings, the Fund may adopt a temporary defensive
posture to preserve capital and, if possible, to achieve positive returns in
defensive type investments. Similarly, a Fund may also temporarily depart from
its investment strategies in order to manage large cash inflows, maintain
liquidity necessary to meet shareholder redemptions or for other reasons (e.g., when the Fund is implementing a revised
investment strategy). During such periods, a Fund may hold a portion or all of
its assets in cash, money market instruments or corporate debt obligations, or
take other investment positions that depart from its ordinary investment
strategies. This may cause a Fund to temporarily forego greater investment
returns, and the Fund may not achieve its investment objective during such
periods.
35
FURTHER
INFORMATION ABOUT PRINCIPAL RISKS
|
|
|
|
|
|
|
| |
|
| Meridian Funds |
|
|
|
| |
|
| Growth Fund |
| Contrarian Fund |
| Hedged Equity Fund |
| Small Cap Growth Fund |
|
|
|
| |
Debt
Securities Risk |
| |
| ✓ |
| ✓ |
| |
|
|
|
| |
Equity
Securities Risk |
| ✓ |
| ✓ |
| ✓ |
| ✓ |
|
|
|
| |
Foreign
Securities Risk |
| ✓ |
| ✓ |
| ✓ |
| |
|
|
|
| |
Growth
Securities Risk |
| ✓ |
| |
| |
| ✓ |
|
|
|
| |
Healthcare
Sector Risk |
| ✓ |
| |
| |
| ✓ |
|
|
|
| |
High
Yield Bond Risk |
| |
| ✓ |
| ✓ |
| |
|
|
|
| |
Income
Risk |
| |
| |
| ✓ |
| |
|
|
|
| |
Industrial
Sector Risk |
| |
| |
| |
| ✓ |
|
|
|
| |
Investment
Strategy Risk |
| ✓ |
| ✓ |
| ✓ |
| ✓ |
|
|
|
| |
Large
Company Risk |
| ✓ |
| ✓ |
| ✓ |
| |
|
|
|
| |
Market
Risk |
| ✓ |
| ✓ |
| ✓ |
| ✓ |
|
|
|
| |
Options
Risk |
| |
| |
| ✓ |
| |
|
|
|
| |
Sector
Concentration Risk |
| ✓ |
| ✓ |
| ✓ |
| ✓ |
|
|
|
| |
Securities
Lending Risk |
| ✓ |
| ✓ |
| ✓ |
| ✓ |
|
|
|
| |
Small and Medium Company Risk |
| ✓ |
| ✓ |
| ✓ |
| |
|
|
|
| |
Small
Company Risk |
| |
| |
| |
| ✓ |
|
|
|
| |
Value
Securities Risk |
| |
| ✓ |
| |
| |
DEBT
SECURITIES RISK
Each
Fund may invest in debt securities of both governmental and corporate issuers. A
decline in prevailing levels of interest rates generally increases the value of
debt securities in a Fund’s portfolio, while an increase in rates usually
reduces the value of those securities. The value of a Fund’s debt securities,
including bonds and convertible securities, are affected by movements in
interest rates; if interest rates rise, the value of these securities may fall.
Generally, the longer the average maturity of a debt security, the greater the
change in its value. As a result, to the extent that a Fund invests in debt
securities, interest rate fluctuations will affect the Fund’s net asset value,
but not the income it receives from debt securities it owns. Debt
secu-
rities
are also subject to credit, liquidity risk and prepayment and extension risk.
Credit risk is the risk that the entity that issued a debt security may become
unable to make payments of principal and interest, and includes the risk of
default. Liquidity risk is the risk that a Fund may not be able to sell
portfolio securities because there are too few buyers for them. Prepayment and
extension risk is the risk that a loan, bond or other security might be called
or otherwise converted, prepaid or redeemed before maturity. If a loan or
security is converted, prepaid or redeemed before maturity, particularly during
a time of declining interest rates or spreads, the portfolio managers may not be
able to invest the proceeds in securities or loans providing as high a level of
income, resulting in a reduced yield to a Fund. Conversely, as interest rates
rise or spreads
36
widen,
the likelihood of prepayment decreases. The portfolio managers may be unable to
capitalize on securities with higher interest rates or wider spreads because a
Fund’s investments are locked in at a lower rate for a longer period of
time.
EQUITY
SECURITIES RISK
The
value of a Fund’s stock investments will fluctuate in response to the activities
of individual companies, general stock market and economic conditions, natural
disasters and the spread of infectious disease or other public health issues.
The stock prices of smaller capitalized and newer companies tend to fluctuate
more than those of larger capitalized and/or more established companies and may
have a smaller market for their shares than do large capitalization companies.
Convertible securities may offer less market risk than owning common shares, but
the potential for capital gain may be less than a common stock investment.
Preferred stock is a hybrid security that combines features of both common stock
and bonds. It is equity, not debt, and is thus riskier than bonds. Whereas bond
interest is a contractual expense of the issuer, preferred dividends, although
payable before common dividends, are not assured (e.g., if earnings are low).
COVID‑19
Risks — An outbreak of respiratory disease caused by a novel coronavirus was
first detected in December 2019 and spread globally. This coronavirus has
resulted in closing borders, enhanced health screenings, partial population
vaccination, healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, government
sponsored fiscal stimulus programs, various moratoria on the applicability of
certain laws and regu
lations,
as well as general concern and uncertainty. The impact of this coronavirus, (and
the variants of such virus) and other epidemics and pandemics that may arise in
the future, could affect the economies
of
many nations, individual companies, their securities (including equity and
debt), and the market in general in ways that cannot necessarily be foreseen at
the present time. In addition, the impact of infectious diseases in developing
or emerging market countries may be greater due to less established health care
systems. Health crises caused by the recent coronavirus outbreak may exacerbate
other pre‑existing political, social, financial, and economic risks in certain
countries. The impact of the outbreak may last for an extended period of
time.
FOREIGN
SECURITIES RISK
Investments
in foreign securities may be subject to more risks than those associated with
U.S. investments, including currency fluctuations, political and economic
instability and differences in accounting, auditing and financial reporting
standards. Foreign securities may be less liquid than domestic securities so
that a Fund may, at times, be unable to sell foreign securities at desirable
times or prices. In addition, emerging market securities involve greater risk
and more volatility than those of companies in more developed markets.
Significant levels of foreign taxes, including potentially confiscatory levels
of taxation and withholding taxes, are also a risk related to foreign
investments.
In
addition, foreign companies may not be subject to uniform accounting, auditing
and financial reporting standards and practices, or regulatory requirements
comparable to those applicable to U.S. companies. Emerging market securities, in
particular, involve greater risk and may be more volatile than those companies
in more developed markets. For example, political and economic structures in
less developed countries may change rapidly, which may cause instability; their
securities markets may be underdeveloped; and emerging market countries are also
more likely to experience high levels of inflation, deflation or currency
fluctuations, which
37
could
adversely affect their economies and securities markets. In general, there may
be less public information available about non‑U.S. companies. Additionally,
specific local political and economic factors must be evaluated in making these
investments, including trade balances and imbalances, and related economic
policies; expropriation or confiscatory levels of taxation and withholding;
limitations on the removal of funds or other assets; political or social
instability; the diverse structure and liquidity of the various securities
markets; and nationalization policies of governments around the world.
Securities of non‑U.S. issuers may be denominated in currencies other than the
U.S. dollar. If the currency in which a security is denominated appreciates
against the U.S. dollar, the dollar value of the security will increase.
Conversely, a decline in the exchange rate of the currency would adversely
affect the value of the security expressed in dollars. The value of currencies
may fluctuate in a manner unrelated to the investment performance of the
securities denominated in those currencies.
GROWTH
SECURITIES RISK
Growth
securities typically trade at a higher multiple of earnings than other types of
equity securities. Accordingly, the market values of growth securities may be
more sensitive to adverse economic or other circumstances or changes in current
or expected earnings than the market values of other types of securities. In
addition, growth securities, at times, may not perform as well as value
securities or the stock market in general, and may be out of favor with
investors for varying periods of time. If the Investment Adviser’s perception of
a company’s growth potential is not realized, the securities purchased may not
perform as expected, reducing a Fund’s returns. A mutual fund investing
principally in growth securities may at times underperform other mutual funds
that invest more broadly or that have different investment styles.
HEALTHCARE
SECTOR RISK
The
Fund anticipates it will typically invest a significant portion of its assets in
the healthcare sector and, therefore, the Fund’s performance could be negatively
impacted by events affecting the healthcare sector. The health care sector is
subject to extensive government regulation and its profitability can be
adversely affected by, among other things, restrictions on government
reimbursement for medical expenses, rising costs of medical products and
services, and increased emphasis on the delivery of healthcare through
outpatient services.
HIGH
YIELD BOND RISK
High-yield,
high risk bonds (i.e., “junk bonds”), in
which only the MERIDIAN HEDGED
EQUITY FUND and the MERIDIAN
CONTRARIAN FUND may invest, are speculative and
are subject to greater volatility and risk of loss through default than
investment grade securities, particularly in deteriorating economic conditions.
High-yield bond values tend to reflect short-term corporate, economic and market
developments and investor perceptions of the issuer’s credit quality to a
greater extent than lower yielding, higher-rated bonds. In addition, it may be
more difficult to dispose of, or to determine the value of, high-yield,
high-risk bonds. Bonds rated Ca are described by Moody’s as “highly speculative
and are likely in, or very near, default, with some prospect of recovery of
principal and interest.” Bonds rated BB+ by S&P are considered the highest
speculative grade by market participants. See Exhibit A to the SAI for a
complete description of the bond ratings.
INCOME
RISK
The
amount of the distributions paid by a Fund generally depends on the amount of
dividends and/or interest received by the Fund on the securities it holds. A
Fund may not be able to pay distributions or may have to reduce its distribution
level if the
38
dividends
and/or interest the Fund receives from its investments decline or are
insufficient to pay such distributions.
INDUSTRIALS
SECTOR RISK
The
Fund anticipates it will typically invest a significant portion of its assets in
the industrials sector and, therefore, the Fund’s performance could be
negatively impacted by events affecting the industrials sector. The industrials
sector may be adversely affected by, among other things, changes in the supply
of and demand for products and services, product obsolescence, claims for
environmental damage or product liability and general economic
conditions.
INVESTMENT
STRATEGY RISK
The
Investment Adviser’s investment strategies and securities selection method may
fail to produce the intended results or achieve a Fund’s investment objective.
In addition, the Investment Adviser’s investment approach may be out of favor at
times, causing a Fund to underperform funds that also seek such investment
objectives but use different approaches to the stock selection and portfolio
construction process. A Fund’s shares, as a result, may lose value and/or
underperform other funds with similar investment objectives. Accordingly, there
is no assurance that a Fund will meet its investment objective or that the value
of your investment will not decline.
LARGE
COMPANY RISK
Larger,
more established companies may be unable to respond quickly to new competitive
challenges such as changes in consumer tastes or innovative smaller competitors.
Also, large‑cap companies are sometimes unable to attain the high growth rates
of successful, smaller companies, especially during extended periods of economic
expansion.
MARKET
RISK
Market
risk refers to the possibility that the market values of securities or other
investments that a Fund holds will fall, sometimes rapidly or unpredictably, or
fail to rise. Security values may fall or fail to rise because of a variety of
factors affecting (or the market’s perception of) individual companies or other
issuers (e.g., an unfavorable earnings
report), industries or sectors, or the market as a whole, reducing the value of
an investment in a Fund. Accordingly, an investment in the Fund could lose money
over short or even long periods. The market values of the securities the Fund
holds also can be affected by changes (or perceived changes) in U.S. or foreign
economies and financial markets, and the liquidity of these securities, among
other factors. In general, equity securities tend to have greater price
volatility than debt securities. In addition, stock prices may be sensitive to
rising interest rates, as the cost of capital rises and borrowing costs
increase. As a result, the value of your investments in a Fund may be more or
less than the value of your purchase price.
OPTIONS
RISK
Investments
in options involve risks different from, and possibly greater than, investing
directly in the underlying security, asset or other reference, including, among
others, the risk that the counterparty to an option may not perform or may be
unable to perform in accordance with the terms of the instrument, the potential
that, at times, there may not be a liquid secondary market for the options (as
described above), and the risk of imperfect correlation between any movement in
the price or value of options and their underlying security, asset or other
reference. Such events, as well as circumstances under which a Fund is required
to purchase the underlying asset at a disadvantageous price, may result in
losses to the Fund. In addition, options also may involve a small initial
investment relative to the risk assumed, which could result in losses that are
greater than the amount originally invested.
39
Special
risks are presented by internationally traded options. Because of time
differences between the United States and various foreign countries, and because
different holidays are observed in different countries, foreign options markets
may be open for trading during hours or on days when U.S. markets are closed. As
a result, option premiums may not reflect the current prices of the underlying
interest in the United States.
SECTOR
CONCENTRATION RISK
Because
the Fund may at times have a significant portion of its assets concentrated in
one or more related sectors of the economy, more risks may be present than if
the Fund were broadly diversified over numerous sectors of the economy. A
“sector” is a broader economic segment that may include many different
industries. As the percentage of the Fund’s assets invested in a particular
sector increases, so does the potential for fluctuation in the value of the
Fund’s shares. The Meridian Hedged Equity Fund anticipates it will typically
invest a significant portion of its assets in the information technology (IT)
sector and, therefore, the Fund’s performance could be negatively impacted by
events affecting the IT sector.
The
information technology sector includes, for example, internet, semiconductor,
software, hardware, and technology equipment companies. The IT sector may be
adversely affected by, among other things, the supply and demand for specific
products and services, the pace of technological development, and government
regulation. Each of the Meridian Growth Fund and the Meridian Small Cap Growth
Fund anticipate investing a significant portion of assets in the industrials
sector and health care sector and, therefore, such Funds’ performance could be
negatively impacted by events affecting these sectors. The industrials sector
may be adversely affected by, among other things, changes in the supply of and
demand for products and serv-
ices,
product obsolescence, claims for environmental damage or product liability and
general economic conditions. The health care sector is subject to extensive
government regulation and its profitability can be adversely affected by, among
other things, restrictions on government reimbursement for medical expenses,
rising costs of medical products and services, and increased emphasis on the
delivery of healthcare through outpatient services.
SECURITIES
LENDING RISK
The
Funds may engage in securities lending for the purpose of realizing additional
income. Generally, any such loan of portfolio securities will be continuously
secured by collateral in accordance with applicable SEC requirements and at
least equal to the value of the security loaned. Such collateral will be in the
form of cash, marketable securities issued or guaranteed by the U.S. Government
or its agencies, or a standby letter of credit issued by qualified banks. The
risks in lending portfolio securities, as with other extensions of secured
credit, consist of a decline in the value of collateral provided for loaned
securities or a decline in the value of any investments made with cash
collateral, as well as possible delay in receiving additional collateral or in
the recovery of the securities or possible loss of rights in the collateral
should the borrower fail financially.
SMALL
AND MEDIUM COMPANY
RISK
A
Fund’s portfolio may include securities of smaller and medium capitalization
companies and less-seasoned companies that have limited operating histories and
may not yet be profitable. These may include companies classified as small-,
mid‑ and micro-capitalization. Investments in these companies offer
opportunities for capital gain, but involve significant risks, including limited
product lines, markets or financial resources, dependence on
40
a
key group of managers, the absence of a ready market for the securities (or
securities which trade less frequently or in a limited volume, or only in the
over‑the‑counter market or on a regional stock exchange), volatility of the
stock price, and, in the case of unseasoned companies, the untested long-term
viability of the firms’ operations. In addition, some smaller capitalization
companies may not be widely followed by the investment community, which can
lower the demand for their stocks.
SMALL
COMPANY RISK
A
Fund’s portfolio may include securities of smaller capitalization companies and
less-seasoned companies that have limited operating histories and may not yet be
profitable. These may include companies classified as small- and
micro-capitalization. Investments in these companies offer opportunities for
capital gain, but involve significant risks, including limited product lines,
markets or financial resources, dependence on a key group of managers, the
absence of a ready market for the securities (or securities which trade less
frequently or in a limited volume, or only in the over‑the‑counter market or on
a regional stock
exchange),
volatility of the stock price, and, in the case of unseasoned companies, the
untested long-term viability of the firms’ operations. In addition, some smaller
capitalization companies may not be widely followed by the investment community,
which can lower the demand for their stocks.
VALUE
SECURITIES RISK
Value
securities are securities of companies that may have experienced, for example,
adverse business, industry or other developments or may be subject to special
risks that have caused the securities to be out of favor and, in turn,
potentially undervalued. The market value of a portfolio security may not meet
the Investment Adviser’s future value assessment of that security, may take
longer than anticipated to rise to the believed value or may decline. In
addition, value securities, at times, may not perform as well as growth
securities or the stock market in general, and may be out of favor with
investors for varying periods of time. A mutual fund investing principally in
value securities may at times underperform other mutual funds that invest more
broadly or that have different investment styles.
41
ORGANIZATION
AND MANAGEMENT
MERIDIAN
FUND, INC.
Meridian
Fund, Inc.® (“Meridian”)
is an open‑end management investment company consisting of four separate series,
which includes the Meridian Growth Fund, the Meridian Contrarian Fund, the
Meridian Hedged Equity Fund and the Meridian Small Cap Growth Fund (each, a
“Fund” and collectively, the “Funds”), each of which is classified as a
“diversified” investment company under the Investment Company Act of 1940, as
amended (the “1940 Act”).
THE
INVESTMENT ADVISER
ArrowMark
Colorado Holdings, LLC located at 100 Fillmore St., Suite 325, Denver, CO
80206, serves as the investment adviser to the Funds. The Investment Adviser, an
investment adviser registered with the Securities and Exchange Commission
(“SEC”) since 2009 and privately owned by its principals, manages the
investments of the Funds’ portfolios, provides administrative services and
manages Meridian’s other business affairs. These services are subject to general
oversight by the Board. Pursuant to an Investment Management Agreement and
Service Agreement between Meridian, on behalf of the Funds, and the Investment
Adviser, (the “Management Agreement”), the Investment Adviser provides
investment advisory services to each Fund.
PORTFOLIO
MANAGERS
James
England, CFA
Portfolio
Manager of Meridian Contrarian Fund.
Employed
by the Investment Adviser as an investment management professional since 2013.
Mr. England was formerly employed with the Pre-
vious
Investment Adviser since 2001. Before that, Mr. England was an equities
derivatives trader with TD Securities from 2000 to 2001.
Chad
Meade
Co‑Portfolio
Manager of Meridian Growth Fund and Meridian Small Cap Growth Fund.
Employed
by the Investment Adviser as an investment management professional since 2013.
Mr. Meade previously served as a co‑portfolio manager and Executive Vice
President of the Janus Triton Fund and the Janus Venture Fund. He has
20 years of experience in the financial industry and focused on small and
mid‑capitalization stocks in the health care and industrials sectors as an
equity research analyst at Janus Capital Management LLC from 2001 to 2011. Prior
to starting with Janus in August 2001, Mr. Meade was a financial analyst
for Goldman Sachs’ global investment research team. He graduated summa cum laude
from Virginia Tech with a Bachelor’s degree in Finance and was a member of the
Omicron Delta Kappa Honor Society.
Brian
Schaub, CFA
Co‑Portfolio
Manager of Meridian Growth Fund and Meridian Small Cap Growth Fund.
Employed
by the Investment Adviser as an investment management professional since 2013.
Mr. Schaub previously served as a co‑portfolio manager and Executive Vice
President of the Janus Triton Fund and the Janus Venture Fund. He has
19 years of experience. Mr. Schaub served as an equity research
analyst at Janus Capital Management LLC from 2000 to 2011, focused on small and
mid‑capitalization stocks in the communications sector. He graduated cum laude
from Williams College with a Bachelor’s degree in Economics.
42
Mr. Schaub
also holds a Chartered Financial Analyst designation.
Clay
Freeman
Portfolio
Manager of Meridian Hedged Equity Fund.
Employed
by the Investment Adviser as an investment research analyst since 2008.
Mr. Freeman has 16 years of experience in the financial industry and
focused on larger capitalization stocks within the communications industry as an
equity research analyst at Janus Capital Management LLC from 2004-2007. He
graduated Phi Beta Kappa from the University of Colorado and also earned an MBA
with a Finance concentration from the Daniels College of Business at Denver
University.
The
SAI provides additional information about James England, Chad Meade, Brian
Schaub, and Clay Freeman including their compensation structure, other accounts
they manage and their ownership of securities in each Fund they manage.
MANAGEMENT
FEES AND OTHER
EXPENSES
Management Fees. Meridian Growth Fund pays the
Investment Adviser an annual fee of 1.00% of the first $50 million of the
Fund’s average daily net assets and 0.75% of the Fund’s average daily net assets
in excess of $50 million. Meridian Contrarian Fund pays the Investment
Adviser an annual fee of 1.00% of the first $750 million of the Fund’s
average daily net assets, 0.75% of the next $50 million of the Fund’s
average daily net assets, 0.70% of the next $50 million of the Fund’s
average daily net assets, 0.65% of the next $50 million of the Fund’s
average daily net assets, 0.60% of the next $50 million of the Fund’s
average daily net assets, 0.55% of the next $50 million of the Fund’s
average daily net assets, and 0.50% of the Fund’s average daily net assets in
excess of $1 billion. Meridian Hedged Equity Fund pays the Investment
Adviser
an
annual fee of 1.00% of the first $10 million of the Fund’s average daily
net assets, 0.90% of the next $20 million of the Fund’s average daily net
assets, 0.80% of the next $20 million of the Fund’s average daily net
assets and 0.70% of the Fund’s average daily net assets in excess of
$50 million. Meridian Small Cap Growth Fund pays the Investment Adviser an
annual fee of 1.00% of the Fund’s average daily net assets. The management fees
are computed daily and paid monthly.
For
the fiscal year ended June 30, 2023 the Investment Adviser received an
investment advisory fee of 0.76% of the average daily net assets for the
Meridian Growth Fund, 1.00% of the average daily net assets for the Meridian
Contrarian Fund, 0.88% of the average daily net assets for the Meridian Hedged
Equity Fund and 1.00% of the average daily net assets for the Meridian Small Cap
Growth Fund. A discussion regarding the basis for the Board’s approval of the
Investment Management Agreement between the Investment Adviser and Meridian on
behalf of the Meridian Growth Fund, the Meridian Contrarian Fund, the Meridian
Hedged Equity Fund and the Meridian Small Cap Growth Fund is currently available
in the Semi-annual report to shareholders.
Expenses. Expenses common to the Funds are
generally allocated to each Fund in proportion to its relative net assets.
Expenses arising in connection with a Fund are charged directly to that Fund.
Expenses directly attributable to a specific class of shares of a Fund are
charged to that share class.
The
Investment Adviser has agreed to waive a portion of the investment advisory
and/or administration fees and/or reimburse other expenses of the Meridian
Growth Fund so that the ratio of expenses to average net assets of the Meridian
Growth (excluding Acquired Fund Fees and Expenses, brokerage expenses, dividend
expenses on securities sold short and interest expenses on short sales, taxes,
and extraordinary expenses) does not exceed 1.30% for Class A,
2.05%
43
for
Class C and 1.05% for Investor Class shares. These expense limitations
may not be amended or withdrawn until October 31, 2024 without the consent of
the Board of Directors.
The
Investment Adviser has agreed to waive a portion of the investment advisory
and/or administration fees and/or reimburse other expenses of the Meridian
Contrarian Fund so that the ratio of expenses to average net assets of the
Meridian Contrarian Fund (excluding Acquired Fund Fees and Expenses, brokerage
expenses, dividend expenses on securities sold short and interest expenses on
short sales, taxes, and extraordinary expenses) does not exceed 1.50% for
Class A, 2.25% for Class C and 1.25% for Investor Class. These expense
limitations may not be amended or withdrawn until October 31, 2024 without
the consent of the Board of Directors.
The
Investment Adviser has agreed to waive a portion of the investment advisory
and/or administration fees and/or reimburse other expenses of the Meridian
Hedged Equity Fund so that the ratio of expenses to average net assets of the
Meridian Hedged Equity Fund (excluding Acquired Fund Fees and Expenses,
brokerage expenses, dividend expenses on securities sold short and interest
expenses on short sales, taxes, and extraordinary expenses) will not exceed
1.50% for Class A, 2.25% for Class C and 1.25% for Investor Class.
These expense limitations may not be amended or withdrawn until October 31,
2024 without the consent of the Board of Directors.
Lastly,
the Investment Adviser has agreed to waive a portion of the investment advisory
and/or administration fees and/or reimburse other expenses of the Meridian Small
Cap Growth Fund so that the ratio of expenses to average net assets of the
Meridian Small Cap Growth Fund (excluding Acquired Fund Fees and Expenses,
brokerage expenses, dividend expenses on securities sold short and interest
expenses on short sales, taxes, and extraordinary
expenses)
does not exceed 1.50% for Class A, 2.25% for Class C and 1.25% for
Investor Class shares. These expense limitations may not be amended or
withdrawn until October 31, 2024 without the consent of the Board of
Directors.
For
a period not to exceed three (3) years from the date on which a waiver or
reimbursement in excess of the expense limitation is made by the Adviser, the
Funds will carry forward, and may repay the Adviser such amounts; provided,
however, that such recapture payments do not cause the Fund’s expense ratio
(after recapture) to exceed the lesser of (i) the expense limitation in
effect at the time of the waiver or (ii) the expense limitation in effect
at the time of the recapture. Any reimbursement or repayment will be on a
monthly basis, subject to year‑end adjustment. During the fiscal year ended
June 30, 2023, the Investment Adviser agreed to reimburse certain expenses
of the Growth Fund, the Contrarian Fund, the Hedged Equity Fund and the Small
Cap Growth Funds in order to limit aggregate operating expenses of their
Class A and Investor Class shares from exceeding the amounts listed
below.
|
|
|
| |
|
| Expense Limitation |
|
| |
Growth
Fund |
|
|
| |
| |
Class A |
|
| 1.55 |
% |
| |
Class C |
|
| 2.25 |
% |
| |
Investor
Class |
|
| 1.30 |
% |
| |
Contrarian
Fund |
|
|
| |
| |
Class A |
|
| 1.60 |
% |
| |
Class C |
|
| 2.20 |
% |
| |
Investor
Class |
|
| 1.35 |
% |
| |
Hedged
Equity Fund |
|
|
| |
| |
Class A |
|
| 1.60 |
% |
| |
Class C |
|
| 2.00 |
% |
| |
Investor
Class |
|
| 1.35 |
% |
| |
Small
Cap Growth Fund |
|
|
| |
| |
Class A |
|
| 1.60 |
% |
| |
Class C |
|
| 2.25 |
% |
| |
Investor
Class |
|
| 1.35 |
% |
44
With
respect to these limits, the Investment Adviser reimbursed the following amounts
for Class A, Class C and Investor Class shares during the fiscal
year ended June 30, 2023.
|
|
|
| |
Growth
Fund |
|
|
| |
| |
Class A |
| $ |
— |
|
| |
Class C |
| $ |
— |
|
| |
Investor
Class |
| $ |
— |
|
| |
Contrarian
Fund |
|
|
| |
| |
Class A |
| $ |
— |
|
| |
Class C |
| $ |
135 |
|
| |
Investor
Class |
| $ |
— |
|
| |
Hedged
Equity Fund |
|
|
| |
| |
Class A |
| $ |
258 |
|
| |
Class C |
| $ |
136 |
|
| |
Investor
Class |
| $ |
— |
|
| |
Small
Cap Growth Fund |
|
|
| |
| |
Class A |
| $ |
— |
|
| |
Class C |
| $ |
— |
|
| |
Investor
Class |
| $ |
— |
|
With
respect to repayment of reimbursed expenses, the Adviser did not recoup any of
the Funds expenses during the fiscal year ended June 30, 2023.
THE
DISTRIBUTOR
ALPS
Distributors, Inc., located at 1290 Broadway, Suite 1000, Denver, Colorado 80203
(the “Distributor”), has entered into a distribution
agreement
with Meridian. The Distributor and its affiliates may pay commissions,
distribution fees and/or other compensation to entities for selling Fund shares
and providing certain distribution-related services to the Funds’ shareholders.
The Distributor also may receive, and may direct to other eligible financial
intermediaries, compensation for providing directly or indirectly,
personal/liaison and related shareholder support services to Fund shareholders,
and may be reimbursed for providing account services, as further described in
the section of the prospectus entitled “Shareholder Information — Distribution
and Networking, Sub‑Accounting and Administrative Services”.
THE
TRANSFER, REDEMPTION AND
DISBURSING AGENT
BNY
Mellon Investment Servicing (US) Inc. serves as Transfer Agent, redemption,
dividend disbursing agent for each Fund and may, in certain circumstances, also
serve as shareholder servicing agent for each Fund. BNY Mellon Investment
Servicing (US) Inc. is located at 103 Bellevue Parkway, Wilmington, DE
19809.
THE
CUSTODIAN
The
Bank of New York Mellon is located at 240 Greenwich Street, New York, New
York, 10286, and serves as custodian of all securities and funds owned by the
Funds.
45
SHAREHOLDER
INFORMATION
CHOOSING
A SHARE CLASS
Each
Fund offers the Class A, Class C and Investor Class shares, each
representing an interest in the same portfolio but with differing features, such
as fees and eligibility requirements. It is important to consider carefully
and/or consult with your advisor, broker, dealer, bank, insurance company or
other entity (each, generally referred to as a “financial intermediary” and,
collectively, as “financial intermediaries”) for additional information on which
classes of shares of the Funds, if any, are an appropriate investment choice
based on your investment objectives and needs. Certain financial intermediaries
may not sell all classes of shares of the Funds and all of such classes may not
be available to all investors. Contact your financial intermediary or refer to
your plan documents for instructions on how to purchase, redeem or exchange Fund
shares.
If
your financial intermediary sells more than one class of shares of a Fund, you
should carefully consider which class (or classes) of shares is most appropriate
for your investment objectives and needs. Certain classes have higher expenses
than others, which may lower the return on your investment. The differential
between classes also will vary depending on the actual investment return for any
given investment period. We encourage you to consult with your financial
intermediary who can help you with your investment decisions. For further
details, please see the SAI.
Conversion of Class C shares
to Class A shares. Class C shares of each
Fund may automatically convert into Class A shares of the same Fund after
they have been held for a certain number of years dependent on intermediary
policy. Investors holding Class C shares of the Funds through a financial
intermediary in “street name” may be subject to
different
eligibility requirements regarding the holding of Class C shares of the
Funds. In this regard, a financial intermediary may sponsor and/or control
accounts, programs or platforms that impose a different conversion schedule or
different eligibility requirements for the conversion of Class C shares
into Class A shares. In these cases, Class C shares of the Funds may
be converted to Class A shares under the policies of the financial
intermediary and the conversion may be structured as an exchange of Class C
shares for Class A shares of the Funds. Financial intermediaries will be
responsible for making such exchanges in those circumstances. Please consult
with your financial intermediary if you have any questions regarding your
shares’ conversion from Class C shares to Class A shares. To the
extent a financial intermediary’s policies provide for no such conversion,
investors holding Class C shares through such financial intermediary may be
disadvantaged relative to investors holding Class C shares either at the
Funds’ transfer agent or through another financial intermediary. Because
Class C shares pay higher ongoing asset-based distribution and shareholder
servicing fees than Class A shares, financial intermediaries may have a
conflict of interest in establishing their relevant conversion schedules and
eligibility requirements. Additional information can be found in
“Intermediary-Defined Sales Charge Waiver Policies,” contained in the Funds’
Prospectus and Statement of Additional Information.
Below
is a summary of certain eligibility requirements and features, including fees,
of Class A, Class C and Investor Class shares of the Funds. The
Class A share class imposes a 5.75% maximum front end sales charge and
employs a traditional breakpoint discount based on the amount of the initial
investment. A Contingent Deferred Sales
46
Charge
(“CDSC”) of 1.00% will be deducted with respect to Class C shares redeemed
within 12 months of purchase, unless a waiver applies. Each class of shares
of the Funds is subject to minimum investment amounts, which may vary by class.
Such minimum investment amounts are set forth in the chart that follows the
summary of
share
class eligibility requirements below. There is a $500,000 maximum on any single
purchase of Class C shares. For investors who wish to purchase more than
the $500,000 maximum worth of shares, the sales charge and expense structure of
Class A shares may be more advantageous.
Eligible
Investors
Class A Shares
Class A
shares are generally available for purchase through financial intermediary
platforms including, but not limited to, traditional brokerage platforms,
self-directed brokerage accounts, mutual fund wrap fee programs, bank trust
platforms and retirement platforms. Class A shares sales charges are as
follows:
|
| |
| |
Class A
Shares Sales Charge: |
| |
| |
Initial
sales charge on purchases |
|
Up
to 5.75%1
Reduction
for purchases of $50,000 or more
Waived
for purchases of $1 million or more |
| |
Deferred
sales charge |
| None |
| |
Minimum
initial investment |
| $2,5002 |
| |
Maximum
purchase |
| None |
| |
Minimum
aggregate account balance |
| None |
| |
Rule
12b‑1 fee |
| Up to 0.25% annual distribution
fee |
1 |
May
be waived under certain circumstances. |
2 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
The
initial sales charge imposed on the purchase of Class A shares is based on
the amount invested, as set forth in the table below. The proceeds of any
applicable sales charge are allocated between the Distributor and your financial
intermediary. The table below sets forth the amount of the applicable sales
charge as a percentage of offering price and net amount invested. The dollar
amount of your initial sales charge is calculated as the difference between the
public offering price and the NAV of those shares. Since the offering price is
calculated to two decimal places using standard rounding criteria, the number of
shares purchased and the dollar amount of your
47
sales
charge as a percentage of the offering price and of your net investment may be
higher or lower than the amounts set forth in the table depending on whether
there was a downward or upward rounding.
|
|
|
|
|
| |
|
| Class A Shares Sales Charge as a Percentage of: |
Amount
of Purchase at Offering Price |
| Offering Price |
| Net Amount Invested |
| Maximum Amount of Sales Charge Reallowed
to Financial Intermediaries as a
Percentage of Offering Price |
|
|
| |
Less
than $50,000 |
| 5.75% |
| 6.10% |
| 5.00% |
|
|
| |
$50,000
but less than $100,000 |
| 4.50% |
| 4.71% |
| 3.75% |
|
|
| |
$100,000
but less than $250,000 |
| 3.50% |
| 3.63% |
| 2.75% |
|
|
| |
$250,000
but less than $500,000 |
| 2.50% |
| 2.56% |
| 2.00% |
|
|
| |
$500,000
but less than $1,000,000 |
| 2.00% |
| 2.04% |
| 1.60% |
|
|
| |
$1,000,000
or more |
| None |
| None |
| None |
1 |
Offering
Price includes the initial sales charge. |
Class A
shares may be offered with a reduced or waived initial sales charge under
certain circumstances. For more information, please refer to the section herein
entitled “Qualifying for a Reduction or Waiver of Class A Shares Sales
Charge.” Class A shares allow for payment of up to 0.25% of net assets to
financial intermediaries for providing distribution, and/or other, shareholder
services to their clients. In addition, Class A shares allow for payment to
financial intermediaries for providing administrative services, including
recordkeeping, sub‑accounting, order processing for omnibus or networked
accounts or other shareholder services provided on behalf of their
clients.
Qualifying for a Reduction or Waiver of
Class A Shares Sales Charge
You
may be able to lower or eliminate your sales charge on Class A shares under
certain circumstances. For example, when purchasing new Class A or
Class C shares, you can combine Class A shares and Class C shares
you already own (either in this Fund or in certain other Meridian funds) with
your current purchase to take advantage of the breakpoints in the sales charge
schedule as set forth above. The circumstances under which you
may
combine such ownership of shares and purchases are described below. If you would
like more information on aggregating shares to take advantage of the
breakpoints, please contact your financial intermediary.
Class A
shares may be offered without an initial sales charge under any of the following
conditions:
• |
| purchases
for retirement and benefit plans made through financial intermediaries
that perform participant recordkeeping or other administrative services
for the plans and that have entered into special arrangements with the
Fund and/or the Distributor specifically for such purchases (may be
subject to a CDSC); |
• |
| purchases
made by or on behalf of financial intermediaries for clients that pay the
financial intermediaries fees in connection with a fee‑based advisory
program, provided that the
financial intermediaries or their trading agents have entered into special
arrangements with the Fund and/or the Distributor specifically for such
purchases; |
• |
|
purchases
by investors maintaining a self-directed brokerage account with a
registered broker-dealer that has entered into an agreement with the Fund
and/or the Distributor to offer Class A
shares |
48
|
|
through
a load-waived network or platform, which may or may not charge transaction
fees; |
• |
| purchases
by insurance companies and/or their separate accounts to fund variable
insurance contracts, provided that
the insurance company provides recordkeeping and related administrative
services to the contract owners and has entered into special arrangements
with the Fund and/or the Distributor specifically for such
purchases; |
• |
| registered
representatives and other employees of financial intermediaries that have
selling agreements with the Fund and/or the Distributor to sell
Class A shares; |
• |
| purchases
by trustees or custodians of any pension or profit sharing plan or payroll
deduction IRA for the employees of any consenting securities dealer having
a sales agreement with the Fund and/or the Distributor;
and |
• |
| purchases
by (i) directors, officers and employees of Meridian Fund, Inc. and
ArrowMark and each of their affiliates, (ii) trustees and officers of
the Fund, and (iii) directors and officers of any sub‑adviser to a
Meridian Fund, Inc., including retired persons who formerly held such
positions and immediate family members of such purchasers. (Immediate
family members are defined as spouses, domestic partners, parents and
children.) |
To
receive a reduced or waived front‑end sales charge, you must let your financial
intermediary know at the time of your purchase of Fund shares that you believe
you qualify for a discount. These other accounts may include the accounts
described under “Aggregating Accounts.” It is possible that your financial
intermediary will require documentation, such as an account statement, to prove
that the accounts are eligible for aggregation. The Letter of Intent described
below requires historical cost information in certain circumstances. You should
retain records necessary to show the price
you
paid to purchase Fund shares, as the Fund, its agents or your financial
intermediary may not retain this information.
Intermediary-Defined
Sales Charge Waiver Policies
The
availability of certain initial or deferred sales charge waivers and discounts
may depend on the particular financial intermediary or type of account through
which you purchase or hold Fund shares.
Intermediaries
may have different policies and procedures regarding the availability of
front‑end sales load waivers or contingent deferred (back‑end) sales load CDSC
waivers, which are discussed below. In all instances, it is the purchaser’s
responsibility to notify the fund or the purchaser’s financial intermediary at
the time of purchase of any relationship or other facts qualifying the purchaser
for sales charge waivers or discounts. For waivers and discounts not available
through a particular intermediary, shareholders will have to purchase fund
shares directly from the fund or through another intermediary to receive these
waivers or discounts.
Robert W. Baird & Co. (“Baird”)
Shareholders
purchasing fund shares through a Baird platform or account will only be eligible
for the following sales charge waivers (front‑end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in this
prospectus or the SAI.
Front‑End Sales Charge Waivers on
Class A‑shares Available at Baird
• |
| Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund |
• |
| Shares
purchase by employees and registered representatives of Baird or its
affiliate and their family members as designated by
Baird |
49
• |
| Shares
purchased using the proceeds of redemptions from a Fund, provided
(1) the repurchase occurs within 90 days following the redemption,
(2) the redemption and purchase occur in the same accounts, and
(3) redeemed shares were subject to a front‑end or deferred sales
charge (known as rights of reinstatement) |
• |
| A
shareholder in a Fund’s Class C Shares will have their share
converted at net asset value to Class A shares of the same Fund if
the shares are no longer subject to CDSC and the conversion is in line
with the policies and procedures of Baird |
• |
| Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage
account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension plans and defined
benefit plans. For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs or
SAR‑SEPs |
CDSC Waivers on Class A and C shares
Available at Baird
• |
| Shares
sold due to death or disability of the shareholder |
• |
| Shares
sold as part of a systematic withdrawal plan as described in this
Prospectus |
• |
| Shares
bought due to returns of excess contributions from an IRA
Account |
• |
| Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable Internal Revenue Service regulations as described in this
Prospectus |
• |
| Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird |
• |
| Shares
acquired through a right of reinstatement |
Front‑End Sales Charge Discounts Available at
Baird: Breakpoints and/or Rights of Accumulations
• |
| Breakpoints
as described in this Prospectus |
• |
| Rights
of accumulations which entitles shareholders to breakpoint discounts will
be automatically calculated based on the aggregated holding of Fund assets
held by accounts within the purchaser’s household at Baird. Eligible Fund
assets not held at Baird may be included in the rights of accumulations
calculation only if the shareholder notifies his or her financial advisor
about such assets |
• |
| Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated
purchases through Baird, over a 13‑month period of
time |
Morgan Stanley Wealth Management (“Morgan
Stanley”)
Shareholders
purchasing Fund shares through a Morgan Stanley Wealth Management transactional
brokerage account will be eligible only for the following front‑end sales charge
waivers with respect to Class A shares, which may differ from and may be
more limited than those disclosed elsewhere in this Fund’s Prospectus or
SAI.
Front‑end Sales Charge Waivers on
Class A Shares Available at Morgan Stanley
Wealth Management
• |
| Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs, SAR‑SEPs or Keogh
plans |
• |
| Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules |
50
• |
| Shares
purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same fund |
• |
| Shares
purchased through a Morgan Stanley self-directed brokerage
account |
• |
| Class C
(i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same
fund pursuant to Morgan Stanley Wealth Management’s share class conversion
program. |
• |
| Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same
account, and (iii) redeemed shares were subject to a front‑end or
deferred sales charge. |
Raymond James & Associates, Inc.,
Raymond James Financial Services, Inc. and each entity’s affiliates (“Raymond
James”)
Shareholders
purchasing fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, will be eligible only for the following load waivers (front‑end sales
charge waivers and contingent deferred, or back‑end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this fund’s
prospectus or SAI.
Front‑end sales load waivers on
Class A shares available at Raymond James
• |
| Shares
purchased in an investment advisory program. |
• |
| Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions. |
• |
| Employees
and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond James. |
• |
| Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end
or deferred sales load (known as Rights of
Reinstatement). |
• |
| A
shareholder in the Fund’s Class C shares will have their shares
converted at net asset value to Class A shares (or the appropriate
share class) of the Fund if the shares are no longer subject to a CDSC and
the conversion is in line with the policies and procedures of Raymond
James. |
CDSC Waivers on Class C shares available
at Raymond James
• |
| Death
or disability of the shareholder. |
• |
| Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus. |
• |
| Return
of excess contributions from an IRA Account. |
• |
| Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable Treasury Regulations as described in the fund’s
prospectus. |
• |
| Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James. |
• |
| Shares
acquired through a right of reinstatement. |
Front‑end load discounts available at Raymond
James: breakpoints, rights of accumulation, and/or letters of intent
• |
| Breakpoints
as described in this prospectus. |
51
• |
| Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Raymond James.
Eligible fund family assets not held at Raymond James may be included in
the calculation of rights of accumulation only if the shareholder notifies
his or her financial advisor about such assets. |
• |
| Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13‑month time period. Eligible fund
family assets not held at Raymond James may be included in the calculation
of letters of intent only if the shareholder notifies his or her financial
advisor about such assets. |
Waivers Specific to Stifel,
Nicolaus & Company, Incorporated (“Stifel”)
Shareholders
purchasing Fund shares through a Stifel platform or account or who own shares
for which Stifel or an affiliate is the broker-dealer of record are eligible for
the following additional sales charge waiver.
Front‑end Sales Load Waiver on Class A
Shares available at Stifel
• |
| Class C
shares that have been held for more than seven (7) years will be
converted to Class A shares of the same Fund pursuant to Stifel’s
policies and procedures |
• |
| All
other sales charge waivers and reductions described elsewhere in the Fund’
Prospectus or SAI still apply. |
Class C Shares
Class C
shares will generally be offered through financial intermediary platforms
including, but not limited to, traditional brokerage platforms, mutual fund wrap
fee programs, bank trust platforms and
retirement
platforms. Class C shares allow for the payment of up to 0.75% of net
assets to financial intermediaries for the provision of distribution services
and up to 0.25% of net assets for the provision of shareholder services on
behalf of their clients. Class C shares also allow for the payment of fees
to financial intermediaries for providing administrative services, including
recordkeeping, sub‑accounting, order processing for omnibus or networked
accounts, or other shareholder services provided on behalf of their
clients.
There
is a $500,000 maximum on any single purchase of Class C shares. For
investors who wish to purchase more than $500,000 worth of shares, the sales
charge and expense structure of Class A shares may be more
advantageous.
Commission on Class C shares
The
Distributor may pay to your financial intermediary a commission rate of 1.00% of
the NAV of the Class C shares purchased. Service providers to qualified
plans will not be eligible to receive this commission if they receive 12b‑1 fees
from the time of initial investment of qualified plan assets in Class C
shares.
Investor Class Shares
Investor
Class shares are available for purchase only to the following investors, or
any other investors specifically approved by the Investment Adviser:
• |
| qualified
retirement plans that are clients of third-party administrators that have
entered into agreements with the Distributor or the Investment Adviser and
offer institutional share class pricing (i.e., no sales charge or Rule 12b‑1
fees); |
• |
| bank
trust departments and trust companies that have entered into agreements
with the Distributor or the Investment Adviser and offer institutional
share class pricing to their clients; |
52
• |
| college
savings plans that qualify for tax‑exempt treatment under Section 529
of the Internal Revenue Code of 1986, as amended (the
“Code”); |
• |
| other
accounts or investment vehicles (e.g., a separate account) managed,
advised or offered by the Investment Adviser; |
• |
| investors
purchasing shares through an asset-based fee program which regularly
offers institutional share classes and which is sponsored by a financial
intermediary that has entered into an agreement with the Distributor or
the Investment Adviser; |
• |
| clients
of a financial representative who are charged a fee for consulting or
similar services; and |
• |
| corporations,
endowments, and foundations that have entered into an arrangement with the
Distributor or the Investment Adviser. |
Trust
companies or bank trust departments that purchased Investor Class shares
for trust accounts may transfer them to the beneficiaries of the trust accounts,
who may continue to hold them or exchange them for Investor Class shares of
other Funds.
MINIMUM
INVESTMENTS
The
following table shows the minimum investment amounts for purchasing share
classes of each Fund.
|
|
|
|
|
|
|
|
|
|
|
| |
Class |
| Minimum Initial
Investment |
|
| Minimum Subsequent
Investment |
|
| Distribution Fee |
|
|
|
| |
Class A Shares |
| $ |
2,500 |
1 |
| $ |
50 |
|
|
| 0.25 |
% |
|
|
| |
Class C Shares |
| $ |
2,500 |
1 |
| $ |
50 |
|
|
| 1.00 |
% |
|
|
| |
Investor Class Shares |
| $ |
2,500 |
|
| $ |
50 |
|
|
| NONE |
|
1 |
Certain
tax‑advantaged retirement accounts or UGMA/UTMA accounts are subject to a
$500 minimum. |
The
Funds reserve the right to change the amount of these minimums from time to time
or to waive them in whole or in part if, in the Investment Adviser’s or the
Fund’s opinion, the investor has adequate intent and availability of assets to
reach a future level of investment in the Fund that is equal to or greater than
the minimum. Shareholders will be notified of any changes to a Fund’s
investment minimums via a supplement to the Fund’s prospectus.
You
may purchase, redeem or exchange shares of the Funds on any business day, which
is any day the New York Stock Exchange is open for business. Generally, you may
purchase, redeem or exchange shares only through institutional channels, such
as
financial
intermediaries and retirement platforms. The minimum investment for Class A
shares, Class C shares and Investor Class shares is $2,500 per
Fund account for non‑retirement accounts. Certain tax‑advantaged retirement
accounts or UGMA/UTMA accounts are subject to a $500 minimum. Investors in a
defined contribution plan through a third-party administrator should refer to
their plan document or contact their plan administrator for additional
information. Accounts that are a part of certain wrap programs may not be
subject to these minimums. Investors should refer to their intermediary for
additional information.
53
DISTRIBUTION
AND NETWORKING,
SUB‑ACCOUNTING AND
ADMINISTRATIVE SERVICES
Distribution
Fees
In
accordance with Rule 12b‑1 of the Investment Company Act of 1940, as amended,
the Funds have adopted distribution plans for Class A shares and
Class C shares (the “Class A Plan,” and “Class C Plan”
respectively, or collectively the “Plans”). Under the terms of the distribution
plans, the Funds are authorized to make payments to the Distributor for
remittance to financial intermediaries, as compensation for distribution-related
services provided by such entities for their customers, or to be retained by the
Distributor for its performance of such services.
Such
financial intermediaries are required to meet certain conditions in order to be
eligible to receive distribution fees. The table below shows the annual
distribution fees (as a percentage of average daily net assets) applicable to
each share class of the Funds:
|
|
|
| |
Share Class |
| Distribution Fee |
|
| |
Class A Shares |
|
| 0.25 |
% |
| |
Class C Shares |
|
| 1.00 |
%* |
| |
Investor Class Shares |
|
| 0.00 |
% |
* |
Up
to 0.75% of this fee is for distribution services and up to 0.25% of this
fee is for shareholder services. |
Under
the terms of the Plans, the Funds are authorized to make payments to the
Distributor for remittance to retirement plan service providers, broker-dealers,
bank trust departments, financial advisors and other financial intermediaries,
as compensation for distribution and/or shareholder services performed by such
entities for their customers who are investors in the Funds.
Such
financial intermediaries may from time to time be required to meet certain
criteria in order to be eligible to receive 12b‑1 fees. Typically, under the
adopted Class C Plan, the Distributor retains all fees paid for the first
12 months pursuant to the Plan on any investment in Class C shares in
order to recoup prior expenses incurred with respect to the payment of a 1%
commission on sales of Class C shares to the financial intermediary.
Accordingly, financial intermediaries will become eligible for monthly
compensation under the Class C Plan beginning in the 13th month following
the purchase of Class C shares. However, certain financial intermediaries
may elect not to receive the initial 1% commission, in which case the
Distributor will pay the monthly 12b‑1 fees to such financial intermediary
beginning the first month following the purchase of Class C shares as such
fees accrue. The Class C shares for which a financial intermediary elects
not to receive the initial 1% commission will not be subject to a CDSC. The
Distributor is entitled to retain some or all fees payable under the Plan in
certain circumstances, including when there is no broker of record or when
certain qualification standards have not been met by the broker of record.
Because 12b‑1 fees are paid out of the Funds’ assets on an ongoing basis,
over time they will increase the cost of your investment and may cost you more
than paying other types of sales charges.
Networking,
Sub‑Accounting and Administrative Services Fees
Select
financial intermediaries may enter into arrangements with the Funds, or its
designees, to perform certain networking, recordkeeping, sub‑accounting and/or
administrative services for shareholders of the Funds. In consideration for
providing these services in an automated environment, such financial
intermediaries may receive compensation from the Funds. Any such compensation by
the Funds to these select financial
54
intermediaries
for the aforementioned services is in addition to, and distinct from, any Rule
12b‑1 related services provided to Fund shareholders.
Other
Financial Intermediary Compensation
The
Distributor, the Investment Adviser and their affiliates may make payments, from
their own resources, to financial intermediaries for marketing/sales support
services relating to the Funds (“Marketing Support Payments”). Marketing Support
Payments are in addition to Distribution Fees and Networking, Sub‑Accounting and
Administrative Services Fees that may be paid to eligible financial
intermediaries, including the Distributor, as appropriate. Such payments are
generally based upon one or more of the following factors: average net assets of
a Fund sold by the Distributor attributable to that financial intermediary,
gross sales of a Fund distributed by the Distributor attributable to that
financial intermediary, reimbursement of ticket charges (fees that a financial
intermediary charges its representatives for effecting transactions in Fund
shares) or a negotiated lump sum payment. While the financial arrangements may
vary for each financial intermediary, the Distributor, the Investment Adviser
and their affiliates may make increased payments on a basis other than those
described above when dealing with certain financial intermediaries. Such
increased payments may enable such financial intermediaries to offset credits
that they may provide to customers.
In
addition to the payments described above, the Distributor, the Investment
Adviser and their affiliates may make other payments or allow promotional
incentives to broker-dealers to the extent permitted by the SEC and the
Financial Industry Regulatory Authority rules and by other applicable laws and
regulations.
Amounts
paid by the Distributor, the Investment Adviser and their affiliates are paid
out of their own resources and do not increase the amount paid by
you
or the Funds. You can find further details in the SAI under “Other Financial
Intermediary Compensation” about the payments made by the Distributor, the
Investment Adviser and their affiliates, if any, to which the Distributor and
the Investment Adviser have agreed to make Marketing Support Payments.
Your
financial intermediary may charge you fees and commissions in addition to those
described in the prospectus. You should consult with your financial intermediary
and review carefully any disclosure your financial intermediary provides
regarding its services and compensation. Depending on the financial arrangement
in place at any particular time, a financial intermediary and its financial
advisors may have a financial incentive for recommending a Fund or a particular
share class over others.
PRICING
OF FUND SHARES
The
price you pay or receive when you buy, sell or exchange shares is a Fund’s next
determined net asset value (or “NAV”) per share for a given share class after
the Transfer Agent receives all required documents in good order (as described
below). NAV is computed as of the close of business of the New York Stock
Exchange (“NYSE”) each day that it is open for trading, which is typically at
4:00 p.m. Eastern Time. Orders received before the close of business are
typically priced at a Fund’s NAV per share as computed on that day. Orders
received after the close of business are typically priced at a Fund’s NAV per
share as computed on the next business day.
NAV
per share is determined by totaling the value of all portfolio securities, cash
and other assets, including accrued interest and dividends, attributable to a
class, and subtracting from that all liabilities, including accrued expenses,
attributable to a class. The total NAV is divided by the total number of
outstanding shares of the class to determine the NAV of each share.
55
Securities
in each Fund’s portfolio are valued primarily on market quotes, or, if quotes
are not available, by a method that the Board believes would accurately reflect
the securities’ fair value. Fair value pricing, for example, may be used for
high-yield debt securities when available pricing information is stale or is
determined for other reasons not to accurately reflect fair value.
All
equity securities are valued at the close of business of the NYSE, which is
usually 4:00 p.m. Eastern Time. Equity securities are valued at the closing
price or last sales price on the principal exchange or market on which they are
traded; or, if there were no sales that day, at the last reported bid price.
Foreign securities shall be valued in U.S. dollars utilizing spot exchange rates
at the close of regular trading on the NYSE. However, many securities markets
and exchanges outside the U.S. close prior to the close of the NYSE; therefore,
the closing prices for securities in such markets or on such exchanges may not
fully reflect events that occur after such close but before the close of the
NYSE. In those situations, foreign securities will be fair valued pursuant to
the policy adopted by the Board, including utilizing a third party pricing
service to determine these fair values (as described below).
Fixed
income (debt) securities with original or remaining maturities more than 60 days
are typically valued at the mean of their quoted bid and asked prices.
Short-term fixed income securities of sufficient credit quality with 60 days or
less to maturity are typically amortized to maturity based on their cost to a
Fund if acquired within 60 days of maturity or, if already held by a Fund on the
60th day, based on the value determined on the 61st day.
Securities
and other assets for which reliable market quotations are not readily available
will be valued at their fair value as determined by the Investment Adviser under
the policy and procedures adopted by, and under the general supervision of, the
Board. The Investment Adviser may determine that fair
value
pricing is appropriate for securities that, for example, are thinly traded or
illiquid, or where the Investment Adviser believes that the prices provided by a
pricing service are not accurate or where such prices are not available. When
fair valuation is employed, the prices of securities used by a Fund to calculate
its NAV may differ from quoted or published prices for the same security. For
example, a Fund may use fair value pricing if the value of a security it holds
has been materially affected by events occurring before the Fund’s pricing time
but after the close of the primary markets or exchange on which the security is
traded. This most commonly occurs with foreign securities, but may occur in
other cases as well. Significant events that may impact the value of securities
principally traded in foreign markets (e.g., movement in the U.S. securities
market, or other regional and local developments) may occur between the time
that foreign markets close and the time that a Fund calculates its NAV. Because
the frequency of significant events is not predictable, fair value pricing of
certain common stocks may or may not occur on a frequent basis. The fair value
prices of portfolio securities generally will be used when it is determined that
the use of such prices will have a material impact on the NAV of a Fund.
Fair
valuation may have the effect of reducing stale pricing arbitrage opportunities
presented by the pricing of Fund shares. However, when a Fund uses fair
valuation to price securities, it may value those securities higher or lower
than another fund would have priced the security. Also, the use of fair
valuation may cause a Fund’s performance to diverge to a greater degree from the
performance of various benchmarks used to compare the Fund’s performance because
benchmarks generally do not use fair valuation techniques. Because of the
judgment involved in fair valuation decisions, there can be no assurance that
the value ascribed to a particular security is accurate.
56
Shares
of a Fund will not be priced on the days on which the NYSE is closed for
trading, and on the following holidays or days on which the following holidays
are observed: New Year’s Day, Martin Luther King, Jr. Day, Washington’s
Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day, and Christmas Day.
ACCOUNT
RULES AND POLICIES
Mandatory
Redemption
If
your account in Class A or Class C of a Fund falls below $750 for any
reason other than market fluctuations, we will ask you to add to your account.
If your account balance is not brought up to the amount at which such mandatory
redemption would apply or you do not send us other instructions, we reserve the
right to redeem your shares and send you the proceeds. Before doing so, you will
be given at least 60 days’ notice to bring the account up to the applicable
amount.
Medallion
Signature Guarantee
Medallion
guarantees are only required for mailed redemption requests under the following
circumstances: (1) if the address on your account was changed within the
last 15 days; (2) if the amount of the redemption exceeds $100,000 and
includes bank account information that is not currently on file with Meridian or
if all of the owners of your Fund account are not included in the registration
of the bank account provided; or (3) if the redemption is made payable to a
third party. You can get a Medallion guarantee at a financial institution such
as a bank or brokerage house. We do not accept notarized signatures.
Other
Documents
Additional
documents may be required for purchases and redemptions when shares are
registered in the name of a corporation, partnership, association, agent,
fiduciary, trust, estate or other
organization.
For further information, please call 1‑800‑446‑6662.
Share
Transfers
You
may transfer shares of a Fund by delivering to the Transfer Agent: (1) a
letter of instructions, signed exactly as the shares are registered by each
registered owner, which identifies clearly the exact names in which the account
presently is registered, the account number, the number of shares to be
transferred, and the names, address and social security or tax identification
number of the account to which the shares are to be transferred, (2) stock
certificates, if any, which are the subject of the transfer, and (3) an
instrument of assignment (“stock power”), which should specify the total number
of shares to be transferred and on which the signatures of the registered owners
have been guaranteed. (See “Medallion Signature Guarantee.”) Additional
documents are required for transfers by corporations, executors, administrators,
trustees and guardians. If you have questions about the documents required, call
1‑800‑446‑6662. If the transfer establishes a new account, you must also submit
a new application. Meridian is not bound to record any transfer on the stock
transfer books maintained by the Transfer Agent until the Transfer Agent has
received all required documents.
Short-Term
Trading Policy
The
Funds are intended for long-term investors and not for those who wish to trade
frequently in their shares. The Funds are not
intended to accommodate frequent purchases and redemptions of shares by
shareholders. Short-term trading (sometimes known as “market timing”)
into and out of a Fund, particularly in larger amounts, may harm performance by
disrupting portfolio management strategies and by increasing expenses, including
brokerage and administrative costs, and may dilute the value of the holdings of
other shareholders of a Fund. Short-term trading may cause a Fund to
retain
57
more
cash than the portfolio manager would normally retain in order to meet
unanticipated redemptions or may force a Fund to sell portfolio securities at
disadvantageous times to raise the cash needed to meet those redemption or
exchange requests. With this in mind, the Board has adopted a Short-Term Trading
Policy (the “Policy”). Under the Policy, to
discourage short-term trading in Fund shares, each Fund imposes 2.00% short-term
redemption fee when shares of a Fund are redeemed (either by selling or
exchanging into another Fund) within 60 days of purchase. The Policy applies to
all shares of the Funds except for Class C shares.
The
short-term redemption fee does not apply to: (1) shares acquired through
reinvestment of dividends and other Fund distributions; (2) systematic
purchases and redemptions; (3) required distributions or return of excess
contributions from retirement accounts; (4) certain hardship situations
such as death or disability; (5) redemptions from certain accounts held
through intermediaries that have entered into an agreement with the Fund or its
Distributor, including (i) certain employer-sponsored retirement plans;
(ii) certain broker wrap fee and other fee‑based programs;
(iii) certain omnibus accounts where the omnibus account holder does not
have the operational capability to impose a redemption fee on its underlying
customers’ accounts; and (iv) certain intermediaries that do not have or
report to the Fund sufficient information to impose a redemption fee on their
customers’ accounts (e.g., certain omnibus accounts where redemptions cannot be
tracked to the individual shareholder); or (6) circumstances that may fall
within the Funds’ short-term trading prohibitions, but which a Fund may
determine in its sole discretion, including, but not limited to, limited waivers
of redemption fees in order to comply with the safe harbor for “qualified
investment alternatives” under the Pension Protection Act of 2006.
The
Policy specifies that shares will be redeemed in the following order: first,
shares acquired through reinvestment of dividends and other fund distributions;
second, shares held more than 60 days; and third, shares held for 60 days or
less (subject to a 2.00% short-term redemption fee). Holding periods are
determined based on a first‑in, first‑out method. Shareholders will normally
comply with the Funds’ policy regarding short-term trading by allowing 60 days
to pass after each investment before they sell or exchange a Fund’s shares.
Exchanges involve a redemption of shares and are subject to the redemption fee.
The Funds may take appropriate action if shares are held longer than
60 days if the trading is disruptive for other reasons such as unusually
large trade size. In addition, the Funds reserve the right to suspend or
terminate your ability to make further purchases at any time, and to impose
restrictions on purchases or exchanges on conditions that are more restrictive
than those that are otherwise stated in this Prospectus. The Funds reserve
the right to modify the terms of, or terminate, the short-term redemption fee at
any time. The Funds and their agent also reserve the right to refuse any
purchase order, at any time, by any investor or group of investors for any
reason. The Funds acknowledge that certain intermediaries may impose short-term
or frequent trading restrictions that differ from those of the Funds, including
such intermediary’s own restrictions or limitations to discourage short-term or
excessive trading. You should consult your financial intermediary to find out
what trading restrictions, including limitations on exchanges, may apply. The
Funds, and their service providers, encourage those financial intermediaries to
apply the Policy to their customers who invest indirectly in the Fund.
The
Policy is subject to limitations on the Funds’ ability to detect and curtail
short-term or disruptive trading practices. Shareholders seeking to engage in
short-term trading practices may use a variety of strategies to avoid detection.
Despite the best efforts
58
of
the Funds or their agents to prevent short-term or disruptive trading, there is
no guarantee that the Funds or their agents will be able to identify such
shareholders or curtail short-term trading practices. The Funds may receive
purchase and redemption orders through financial intermediaries and cannot
always identify or reasonably detect excessive short-term trading which may be
facilitated by these intermediaries or by the use of omnibus account
arrangements offered by these intermediaries to investors. The Transfer Agent
will attempt to monitor overall purchase and redemption activity in those
accounts to seek to identify patterns that may suggest excessive trading by the
underlying owners. If evidence of possible excessive trading activity is
observed by the Transfer Agent, the financial intermediary that is the
registered owner will be asked to review the account activity, and to confirm to
the Transfer Agent and the respective Fund that appropriate action has been
taken to curtail any excessive trading activity. Omnibus accounts are commonly
used by financial intermediaries and benefit plans. Omnibus accounts allow
multiple investors to aggregate their respective share ownership positions and
purchase, redeem and exchange Fund shares using a single account where the
identity of the individual shareholder(s) is not known to the Funds or their
agents. If an individual shareholder in an omnibus account can be identified,
they will be subject to the redemption fee.
Information
Sharing Agreements
As
required by Rule 22c‑2 under the 1940 Act, the Funds or certain of its service
providers will enter into information sharing agreements with financial
intermediaries, including participating life insurance companies and financial
intermediaries that sponsor or offer retirement plans through which shares of
the Funds are made available for purchase. Pursuant to Rule 22c‑2, financial
intermediaries are required, upon request, to: (i) provide shareholder
account and transaction information and (ii) execute
instructions
from the Funds to restrict or prohibit further purchases of Fund shares by
shareholders who have been identified by the Funds as having engaged in
transactions that violate the Funds’ excessive trading policies and
procedures.
Identity
Verification
Federal
law requires Meridian, and your financial intermediary, to obtain and record
specific personal information to verify your identity when you open an account.
This information may include your name, address, date of birth (for individuals)
and taxpayer or other government issued identification number (e.g., social security number or other taxpayer
identification number). Some financial intermediaries may also require that you
provide other documents to assist in verifying your identity.
Until
verification of your identity is made, the Funds may need to delay the date of
your purchase or may be unable to open your account, which may result in a
return of your investment monies. In addition, if the Funds are unable to verify
your identity after your account is open, the Funds reserve the right to close
your account or take other steps as deemed reasonable. The Funds will not be
liable for any loss resulting from any purchase delay, application rejection or
account closure due to a failure to provide proper identifying
information.
Your
financial intermediary may temporarily limit additional share purchases or even
close an account if they are unable to verify your identity. Please contact your
financial intermediary if you need assistance or would like to receive
additional information regarding identity verification.
Policy
Regarding Disclosure of Portfolio Holdings
A
description of the Funds’ policies regarding disclosure of the Funds’ portfolio
holdings can be found in the Funds’ SAI and on the Funds’ website at
www.arrowmarkpartners.com/meridian.
59
Householding
In
order to reduce shareholder expenses, we may, if prior consent has been
provided, mail only one copy of the Funds’ Prospectus and each annual and
semi-annual report to those addresses shared by two or more accounts. If you
wish to receive individual copies of these documents, please call
1‑800‑446‑6662. If your shares are held through a financial institution, please
contact them directly. We will begin sending your individual copies with the
next scheduled mailing.
HOW
TO PURCHASE SHARES
Generally,
purchases of Class A shares, Class C and Investor Class shares
may only be made through institutional channels such as financial intermediaries
and retirement accounts. Contact your financial intermediary or refer to your
plan documents for information on how to invest in the Funds, including
additional information on minimum initial or subsequent investment requirements.
Your financial intermediary may charge you a separate or additional fee for
processing purchases of shares. The Funds have only authorized certain financial
intermediaries to receive purchase orders on the Funds’ behalf. As discussed
above, pursuant to agreements with certain intermediaries, the Investment
Adviser and/or Distributor may pay commissions or fees to those intermediaries
for their role in the attraction and retention of shareholders to the Funds.
When considering Fund recommendations made by these intermediaries, you should
consider such arrangements.
Meridian
may, from time to time, accept telephone purchase orders from broker dealers and
institutions previously approved by Meridian. Meridian does not have a sales or
service charge but those broker dealers may charge you for their services.
Because
the Funds are not intended for frequent trading, the Funds reserve the right to
reject any purchase order, including exchange purchases, for
any
reason. For more information about the Funds’ policies on frequent trading,
refer to “Short Term Trading Policy”.
If
you are opening an account in the name of a legal entity (e.g., a partnership,
business trust, limited liability company, corporation, etc.), you may be
required to supply the identity of the beneficial owner or controlling person(s)
of the legal entity prior to the opening of your account. The Fund may request
additional information about you (which may include certain documents, such as
articles of incorporation for companies) to help the Transfer Agent verify your
identity.
Keeping
You Informed
As
a shareholder, you will be sent the following communications:
• |
| confirmation
statements; account statements (mailed after the close of each calendar
quarter); |
• |
| annual
and semi-annual reports (mailed approximately 60 days after June 30
and December 31); |
• |
| a
1099 tax form (mailed by the applicable deadline;
and |
• |
| a
copy of the Fund’s annually updated Prospectus (mailed to existing
shareholders in the fall of each year). |
Automatic Investment Plan. The automatic
investment plan provides a convenient method to have monies deducted directly
from your bank account for investment in a Fund, provided that your purchases
meet the applicable minimum subsequent investment requirement and that the plan
be available for shareholders of the Fund in which you are invested. To learn
more about the plan and to begin participating in this plan, please call
1‑800‑446‑6662. In addition, you may arrange for periodic purchases by
authorizing your financial intermediary to debit the amount of your investment
from your bank account on a day or days you
60
specify.
Contact your financial intermediary or a representative of the Distributor, if
applicable, for details. Not all financial intermediaries provide this plan. The
Funds may alter, modify or terminate this plan at any time.
Automated Clearing House Purchases. Current
shareholders may purchase additional shares via Automated Clearing House
(“ACH”). To have this option added to your account, please send a letter to the
Funds requesting this option and supply a voided check for the bank account.
Only bank accounts held at domestic institutions that are ACH members may be
used for these transactions.
You
may not use ACH transactions for your initial purchase of Fund shares. ACH
purchases will be effective at the closing price per share on the business day
after the order is placed. The Funds may alter, modify or terminate this
purchase option at any time.
Shares
purchased by check or via ACH will not be available for redemption until payment
for such shares has been received by the Fund. For shares purchased via check,
it may take up to 15 business days for a check to clear and the Fund to receive
payment. For shares purchased via ACH, it may take up to 60 days for the Fund to
receive payment.
EXCHANGES
BETWEEN FUNDS
In
general, you may exchange shares between Funds on any day the NYSE is open for
regular trading, subject to eligibility and other requirements. Contact your
financial intermediary or consult your plan documents for information on
exchanging into other Funds. As with any investment, be sure to read the
prospectus of any Fund(s) into which you are exchanging. An exchange from one
such fund to another is generally a taxable transaction (except for certain
tax‑advantaged accounts) and has the same tax consequences as ordinary purchases
and redemptions. The Funds and the Transfer Agent employ reasonable
procedures,
including
providing written confirmations, to confirm that the instructions received from
any person with appropriate account information are genuine. Exchange
redemptions and purchases are processed simultaneously at the Fund’s next
determined NAV per share after the exchange order is received in good order.
(See “Pricing of Fund Shares.”)
Exchanges
are subject to the following conditions:
• |
| You
may generally exchange shares of a Fund for shares of the same class of
any of the other Funds sold by or available through your financial
intermediary or qualified plan. |
• |
| The
Funds may change or cancel your right to make an exchange by giving the
amount of notice required by regulatory authorities (generally
60 days for a material change or cancellation). |
• |
| The
exchange privilege is not intended as a vehicle for short-term or frequent
trading. A Fund may suspend or terminate your exchange privilege if you
make more than one round trip in such Fund in a 30‑day period and may bar
future purchases in such Fund or the Funds. The Funds will work with
intermediaries to apply the Funds’ exchange limit. However, the Funds may
not always have the ability to monitor or enforce the trading activity in
such accounts. For more information about the Funds’ policy on frequent
trading, refer to “Short-Term Trading Policy.” |
• |
| Under
certain circumstances exchanges between certain classes of shares of the
same Fund may be permitted. Such exchanges may be subject to a CDSC, a
redemption fee or other fees, at the discretion of the Fund. Any such
exchange and any CDSC, redemption fee or other fees may be waived for
certain intermediaries that have entered into an agreement with the
Distributor. |
Exchange
services are available only in states where the Fund to be purchased may be
legally offered and may be terminated or modified at any time upon 60 days’
written notice.
61
EXCHANGES
BETWEEN SHARE CLASSES
Fund
shareholders may transfer shares between the Class A, Class C,
Investor Class shares and other share classes of a Fund. Share class
transfers must generally meet the minimum investment requirements described in
“Purchase and Sale of Fund Shares” in the applicable prospectuses, though the
Funds reserve the right to waive or change investment minimums. Such exchanges
may be subject to a CDSC, a redemption fee or other fees, at the discretion of
the Funds. Any such exchanges and any CDSC, redemption fee or other fees may be
waived for certain intermediaries that have entered into an agreement with the
Adviser. A share class transfer between shares of a single Fund is generally not
considered a taxable transaction and is not subject to a short-term redemption
fee, although certain tax reporting requirements may apply to significant
holders as discussed in the SAI under “FEDERAL INCOME TAXES — Transfers between
Classes of a Single Fund”. You may request a share class transfer by telephone
or by mail. Please call the Funds’ transfer agent, BNY Mellon Investment
Servicing (US) Inc., at 1‑800‑446‑6662 for more information.
Waiver
of Sales Charge
The
sales charge will be waived on any Class A shares received through an
exchange of Class A shares of any of the Funds, which includes the Legacy
Class shares and the Investor Class shares of the Funds. Class A
shares or Class C shares received through an exchange of Class A
shares or Class C shares, respectively, of another Fund will not be subject
to any applicable CDSC at the time of the exchange. Any CDSC applicable to
redemptions of Class A shares or Class C shares will continue to be
measured on the shares received by exchange from the date of your original
purchase. For more information about the CDSC, please refer to “How to Redeem.”
Unlike Class A
shares,
Class C shares do not have any front‑end sales charges; however, their
higher annual operating expenses mean that over time, you could end up paying
more than the equivalent of the maximum allowable front‑end sales charge.
HOW
TO REDEEM
Generally,
redemptions may only be effected through financial intermediaries, retirement
platforms and certain institutional investors, as applicable and described
above. It is possible that your financial intermediary charges a processing or
service fee in connection with the redemption of shares. Contact your financial
intermediary or refer to the appropriate plan documents for details.
Shares
of the Funds are redeemable on any day the NYSE Market is open. Redemptions are
duly processed at the NAV next calculated after receipt of the redemption order
by the Funds or their agents. Redemption proceeds, less any applicable CDSC for
Class A shares or Class C shares will typically be sent within one to
two business days following receipt of the redemption order but may take up to
seven days.
The
Funds reserve the right to postpone payment of redemption proceeds for up to
seven calendar days. Additionally, the right to require the Funds to redeem your
shares may be suspended, or the date of payment may be postponed beyond seven
calendar days, whenever: (i) trading on the NYSE is restricted, as
determined by the SEC, or the NYSE is closed (except for holidays and weekends);
(ii) the SEC permits such suspension and so orders; or (iii) an
emergency exists as determined by the SEC so that disposal of securities or
determination of NAV is not reasonably practicable.
Systematic
Withdrawal Plan
Once
you have established an account with $5,000 or more, you may automatically
receive funds from
62
your
account on a monthly, quarterly or semi‑annual basis (minimum withdrawal of
$100). The maximum annual rate, at which shares subject to a CDSC may be
redeemed, pursuant to a systematic withdrawal plan, without paying a CDSC, is
12% of the NAV of the account. Call 1‑800‑446‑6662 to request a form to start a
systematic withdrawal plan.
Redemption
Price and Conditions
All
shares of a Fund may be redeemed at the next NAV per share of the Fund
determined after receipt of a redemption request in good order received by the
Transfer Agent by mail or telephone as described above. Because the NAV of a
Fund’s shares will fluctuate as a result of changes in the market value of the
securities it owns, the amount you receive upon redemption may be more or less
than the amount you paid for the shares. (See “Pricing of Fund Shares.”) Payment
for shares redeemed in writing or by telephone, if in good order, will be made
promptly after receipt, but not later than seven business days after the
valuation date. Under normal conditions, each
Fund imposes a 2.00% short-term
redemption fee when shares of a Fund are
redeemed within 60 days of purchase (see “Short-Term Trading
Policy”). The Short Term Trading Policy
applies to all shares of the Funds except for Class C shares. Requests for
redemption which are subject to any special conditions or which specify an
effective date other than as provided in this Prospectus cannot be
accepted.
Although
the Funds generally intend to pay redemption proceeds in cash, a Fund may redeem
some or all of its shares in kind under certain circumstances such as to protect
the interests of remaining shareholders, to accommodate a request by a
particular shareholder that does not adversely affect the interests of the
remaining shareholders, in connection with the liquidation of a Fund, or a lack
of liquidity in the Fund’s portfolio to meet
redemptions.
This means that the redemption proceeds will be paid in assets from a Fund’s
portfolio by delivery of securities selected from its assets at the Fund’s
discretion. If a Fund redeems your shares in kind, you may bear transaction
costs and may bear market risks until such assets are converted into cash. In
kind redemption proceeds could include illiquid securities. As described in the
SAI, illiquid securities are those that a Fund cannot reasonably expect to
receive approximately the amount the Fund values those securities within seven
days.
Investment
dealers handling redemption transactions may charge you for the service.
Requests for redemptions will be honored but payment will be withheld until
checks (including certified checks) received for the shares purchased have
cleared, which can take as long as fifteen calendar days from date of
purchase.
Contingent
Deferred Sales Charge and Waivers
A
1.00% Contingent Deferred Sales Charge CDSC will be deducted with respect to
Class C shares redeemed within 12 months of purchase, unless a CDSC waiver
applies. The CDSC will be based on the lower of the original purchase price or
the value of the redemption of the Class C shares redeemed, as
applicable.
There
are certain cases in which you will be exempt from a CDSC charged to
Class C shares. Among others, these include:
• |
| The
death or disability of an account owner and to honor a qualified domestic
relationships order (QDRO); |
• |
| Retirement
plans and certain other accounts held through a financial intermediary
that has entered into an agreement with the Distributor to waive CDSCs for
such accounts; |
• |
| Retirement
accounts taking required minimum distributions; |
63
• |
| The
redemption of Class C shares acquired through reinvestment of Fund
dividends or distributions; |
• |
| The
portion of the redemption representing appreciation as a result of an
increase in NAV above the total amount of payments for Class C shares
during the period during which the CDSC applied; |
• |
| If
the Fund chooses to liquidate or involuntarily redeem shares in your
account; or |
• |
| If
a financial intermediary elects to not receive the initial 1% commission
and is receiving 12b‑1 fees beginning on the first month following the
purchase of Class C shares as such fees accrue, where an agreement is
in place between the financial intermediary and the
Distributor. |
To
keep the CDSC as low as possible, Class C shares not subject to any CDSC
will be redeemed first, followed by shares held longest.
Class A
Shares Reinstatement Privilege
After
you have redeemed Class A shares, you have a onetime right to reinvest the
proceeds within 90 days of the redemption date at the current NAV (without
an initial sales charge). You will not be reimbursed for any CDSC paid on your
redemption of Class A shares.
64
DISTRIBUTIONS
AND TAX STATUS
DISTRIBUTIONS
Each
Fund intends to declare and pay distributions from the Fund’s net investment
income, if any, annually. The amount depends on earnings, the financial
condition of the Fund and other factors. Each Fund will also distribute any net
realized capital gains to shareholders annually. A Fund may make additional
distributions of any net investment income or net realized capital gains near or
following the end of the calendar year. All distributions will be automatically
reinvested in additional shares unless you elect to receive payment in cash. The
NAV of shares will be reduced by the amount of your distributions.
If
you purchase Fund shares shortly before the record date for a distribution, you
will pay the full price for the shares and receive some portion of the price
back as a taxable distribution. Similarly, if you purchase shares of a Fund when
it holds appreciated securities, you will receive a taxable return of part of
your investment if and when the Fund sells the appreciated securities and
distributes the gain. The Funds have built up, or have the potential to build
up, high levels of unrealized appreciation, which may result in future taxable
distributions.
Undeliverable
Distribution Checks
If
you choose to receive distributions in cash and distribution checks are returned
and marked as “undeliverable” or remain uncashed for six months, your account
will be changed automatically so that all future distributions are reinvested in
your account. Checks that remain uncashed for six months will be cancelled and
the money reinvested in the Fund. No interest is paid during the time the check
is outstanding.
Cost
Basis Reporting
Mutual
funds are required to report to the Internal Revenue Service (“IRS”) holding
period information and the “cost basis” of shares acquired by a shareholder on
or after January 1, 2012 (“covered shares”) and subsequently redeemed,
along with holding period information, as well as the gross proceeds from the
sale of fund shares regardless of when acquired. These requirements do not apply
to investments through a tax‑advantaged arrangement, such as a 401(k) plan or an
individual retirement plan. The cost basis of a share is generally its purchase
price adjusted for returns of capital and other corporate actions. Cost basis is
used to determine whether a sale of the shares results in a gain or loss. If you
redeem covered shares during any year, then the Fund will report the cost basis
of such covered shares to the IRS and you on Form 1099‑B.
The
Funds will permit you to elect from among several IRS‑accepted cost basis
methods to calculate the cost basis of your covered shares. If you do not
affirmatively elect a cost basis method, then the Fund’s default cost basis
calculation method will be applied to your account(s). The cost basis method
elected or applied may not be changed after the settlement date of a sale of
Fund shares.
If
you hold Fund shares through a broker (or another nominee), please contact that
broker (nominee) with respect to the reporting of cost basis and available
elections for your account.
You
are encouraged to consult your tax advisor regarding the application of the cost
basis reporting rules and, in particular, which cost basis calculation method
you should elect.
65
FEDERAL
INCOME TAXES
This discussion regarding federal income taxes is
based on laws that were in effect as of the date of this Prospectus. It does not
describe issues that apply to shareholders in special situations, such as
tax‑exempt or foreign shareholders (as defined in the SAI) or those holding Fund
shares through a tax‑advantaged account, such as a 401(k) Plan or IRA,
shareholders holding investments through foreign institutions, broker-dealers,
shareholders holding shares as part of a larger integrated transaction,
shareholders who are subject to alternative minimum tax, financial institutions,
insurance companies, or pass-through entities such as entities taxed as
partnership or S corporations. This discussion summarizes only some of the
important federal income tax considerations that affect the Funds and you as a
shareholder. It is not intended as a substitute for careful tax planning. You
should consult your tax adviser about your specific tax situation, including the
federal, state, local and foreign tax consequences to you of an investment in a
Fund. Additional federal income tax considerations are discussed in the SAI.
Each
Fund intends to qualify each year as a “regulated investment company” under
Subchapter M of the Code. This discussion assumes that each Fund will so qualify
and will satisfy the distribution requirements under Subchapter M. There can be
no guarantee that these assumptions will be correct. By qualifying as a
regulated investment company, a Fund will not be subject to federal income taxes
to the extent that it distributes substantially all of its net investment income
and any realized capital gains. Each Fund intends to distribute to the Fund’s
shareholders substantially all of the Fund’s net investment income and net
realized capital gains, if any.
Distributions
Distributions
to you of a Fund’s ordinary income and net short-term capital gain, if any,
generally are
taxable
as ordinary income. Distributions to you of a Fund’s net long-term capital gain,
if any, generally are taxable to you as long-term capital gain regardless of how
long you have held your shares.
Currently,
an individual’s net long-term capital gain is subject to a maximum federal
income tax rate of 20% (in addition to the 3.8% Medicare tax described below).
Also, if you are an individual or other noncorporate Fund shareholder,
distributions attributable to dividends received by certain Funds from their
investments in U.S. and certain foreign corporations will result in qualified
dividend income, which is subject to tax rates applicable to long-term capital
gains if certain holding period requirements are met by you for your Fund shares
and by the Funds for their investments in the stock producing such dividends and
certain other requirements are satisfied.
In
general, distributions from a Fund are taxable to you when paid, whether you
take the distributions in cash or automatically reinvest them in additional Fund
shares. You will be notified in January of each year about the federal tax
status of distributions made by the Funds for the prior year.
If
a Fund invests in stock of a real-estate investment trust (a “REIT”), it may be
eligible to pay “section 199A dividends” to its shareholders with respect to
certain dividends received by it from its investment in REITs. For taxable years
beginning before 2026, section 199A dividends are taxable to individual and
other noncorporate shareholders at a reduced effective federal income tax rate,
provided that certain holding period requirements and other conditions are
satisfied.
Redeeming
and Exchanging Shares
Your
redemptions (including redemptions in‑kind) and exchanges of shares of different
Funds will ordinarily result in a taxable capital gain or loss, depending on the
amount you receive for your shares (or are deemed to have received in the
case
66
of
exchanges) and the amount you paid (or are deemed to have paid) for them. Such
gain or loss generally will be long-term capital gain or loss if you have held
your redeemed or exchanged Fund shares for more than one year at the time of
redemption or exchange, except that any loss realized on shares held for six
months or less will be treated as a long-term capital loss to the extent of any
capital gain dividends that were received on the shares. All or a portion of
capital losses realized on the redemption or exchange of Fund shares may be
disallowed if you invest (or agree to invest) in substantially identical
securities within 30 days before or after the redemption or exchange.
Foreign
Securities
The
Funds’ investments in foreign securities may increase or accelerate a Fund’s
recognition of ordinary income and may affect the timing or amount of a Fund’s
distributions. A Fund may hold securities in entities that are passive foreign
investment companies for U.S. federal income tax purposes. A Fund may make
certain tax elections with respect to an investment in a passive foreign
investment company, which may result in an acceleration of the recognition of
income and/or the recognition of ordinary income. For more information, see the
SAI under “FEDERAL INCOME TAXES — Taxation of Fund Investments.” The Funds may
incur foreign taxes in connection with some of their foreign investments. In
general, shareholders cannot deduct or claim a credit for these
taxes.
Surtax
on Net Investment Income
An
additional 3.8% Medicare tax will be imposed on certain net investment income
(including dividend income and capital gains received from a Fund as well as net
gains from redemptions or other taxable dispositions of Fund shares) of U.S.
individuals, estates and trusts to the extent that such person’s gross income as
adjusted exceeds a threshold amount.
Backup
Withholding
A
Fund may be required to “back‑up” withhold a portion of your distributions and
redemption proceeds if you have not provided the Fund your taxpayer
identification number in compliance with IRS rules and certified that you are
not subject to back‑up withholding. The backup withholding tax rate is currently
24%. To avoid back‑up withholding, make sure you provide your correct tax
identification number (Social Security number for most investors) and
appropriate certification on your account application. If you do not provide us
with a correct taxpayer identification number, you may be subject to IRS
penalties. The IRS may also instruct a Fund that you are subject to back‑up
withholding.
Investors
should consult with their tax advisers regarding the U.S. federal, foreign,
state and local tax consequences of an investment in the Fund.
67
FINANCIAL
HIGHLIGHTS
The
financial highlights table is intended to help you understand each Fund’s
financial history. Certain information reflects financial results for a single
Fund share. The total returns in the table represent the rate that an investor
would have earned (or lost) on an investment in each Fund (assuming reinvestment
of all distributions). Prior to July 1, 2015, Class A was known as the
Advisor Class. The information provided has been audited by Cohen &
Company, Ltd., the Funds’ independent registered public accounting firm, whose
report, along with the Funds’ financial statements, is included in the Funds’
annual reports and is available upon request and incorporated by reference in
the
SAI.
MERIDIAN
GROWTH FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class A |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
32.16 |
|
| $ |
53.12 |
|
| $ |
34.45 |
|
| $ |
38.38 |
|
| $ |
43.88 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.17 |
) |
|
| (0.34 |
) |
|
| (0.37 |
) |
|
| (0.16 |
) |
|
| (0.13 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 4.20 |
|
|
| (13.22 |
) |
|
| 19.46 |
|
|
| (0.22 |
) |
|
| 0.06 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 4.03 |
|
|
| (13.56 |
) |
|
| 19.09 |
|
|
| (0.38 |
) |
|
| (0.07 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.43 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.43 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
32.09 |
|
| $ |
32.16 |
|
| $ |
53.12 |
|
| $ |
34.45 |
|
| $ |
38.38 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 14.48 |
% |
|
| (29.43 |
)% |
|
| 55.62 |
% |
|
| (1.72 |
)%4 |
|
| 2.64 |
%4 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.52 |
)%5 |
|
| (0.75 |
)%5 |
|
| (0.82 |
)%5 |
|
| (0.45 |
)% |
|
| (0.32 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.08 |
%5 |
|
| 1.17 |
%5 |
|
| 1.16 |
%5 |
|
| 1.17 |
% |
|
| 1.15 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
3,414 |
|
| $ |
4,163 |
|
| $ |
6,045 |
|
| $ |
4,731 |
|
| $ |
6,707 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 47 |
% |
|
| 42 |
% |
|
| 30 |
% |
|
| 47 |
% |
|
| 35 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
4 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
5 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
68
MERIDIAN
GROWTH FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class C |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
30.73 |
|
| $ |
51.42 |
|
| $ |
33.60 |
|
| $ |
37.76 |
|
| $ |
43.56 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.39 |
) |
|
| (0.64 |
) |
|
| (0.66 |
) |
|
| (0.40 |
) |
|
| (0.43 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 3.95 |
|
|
| (12.65 |
) |
|
| 18.90 |
|
|
| (0.21 |
) |
|
| 0.06 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 3.56 |
|
|
| (13.29 |
) |
|
| 18.24 |
|
|
| (0.61 |
) |
|
| (0.37 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.43 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.43 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
30.19 |
|
| $ |
30.73 |
|
| $ |
51.42 |
|
| $ |
33.60 |
|
| $ |
37.76 |
|
|
|
| |
|
|
|
|
|
Total
return2 |
|
| 13.56 |
% |
|
| (29.91 |
)% |
|
| 54.49 |
% |
|
| (2.40 |
)%3 |
|
| 1.94 |
%3 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (1.30 |
)%4 |
|
| (1.44 |
)%4 |
|
| (1.53 |
)%4 |
|
| (1.15 |
)% |
|
| (1.08 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.84 |
%4 |
|
| 1.87 |
%4 |
|
| 1.87 |
%4 |
|
| 1.87 |
% |
|
| 1.87 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
961 |
|
| $ |
1,459 |
|
| $ |
2,899 |
|
| $ |
2,188 |
|
| $ |
2,914 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 47 |
% |
|
| 42 |
% |
|
| 30 |
% |
|
| 47 |
% |
|
| 35 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Excludes
the effects of any sales charges. |
3 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
4 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
69
MERIDIAN
GROWTH FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Investor Class |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
33.46 |
|
| $ |
54.83 |
|
| $ |
35.46 |
|
| $ |
39.29 |
|
| $ |
44.66 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.13 |
) |
|
| (0.23 |
) |
|
| (0.20 |
) |
|
| (0.05 |
) |
|
| (0.06 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 4.39 |
|
|
| (13.74 |
) |
|
| 19.99 |
|
|
| (0.23 |
) |
|
| 0.13 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 4.26 |
|
|
| (13.97 |
) |
|
| 19.79 |
|
|
| (0.28 |
) |
|
| 0.07 |
|
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net investment income |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| (0.01 |
) |
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.43 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (4.10 |
) |
|
| (7.40 |
) |
|
| (0.42 |
) |
|
| (3.55 |
) |
|
| (5.44 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
33.62 |
|
| $ |
33.46 |
|
| $ |
54.83 |
|
| $ |
35.46 |
|
| $ |
39.29 |
|
|
|
| |
|
|
|
|
|
Total
return |
|
| 14.61 |
% |
|
| (29.25 |
)% |
|
| 56.01 |
% |
|
| (1.42 |
)%3 |
|
| 2.95 |
%3 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.38 |
)%4 |
|
| (0.50 |
)%4 |
|
| (0.47 |
)%4 |
|
| (0.13 |
)% |
|
| (0.14 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 0.94 |
%4 |
|
| 0.92 |
%4 |
|
| 0.87 |
%4 |
|
| 0.86 |
% |
|
| 0.87 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
33,267 |
|
| $ |
40,639 |
|
| $ |
62,145 |
|
| $ |
280,414 |
|
| $ |
362,613 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 47 |
% |
|
| 42 |
% |
|
| 30 |
% |
|
| 47 |
% |
|
| 35 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Less
than $0.005 per share. |
3 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
4 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
70
MERIDIAN
CONTRARIAN FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class A |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
35.04 |
|
| $ |
48.85 |
|
| $ |
30.83 |
|
| $ |
34.94 |
|
| $ |
44.26 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment income (loss)1
|
|
| 0.05 |
|
|
| (0.17 |
) |
|
| (0.21 |
) |
|
| 0.01 |
|
|
| 0.05 |
|
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 4.96 |
|
|
| (7.17 |
) |
|
| 20.17 |
|
|
| (1.57 |
) |
|
| (1.60 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 5.01 |
|
|
| (7.34 |
) |
|
| 19.96 |
|
|
| (1.56 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net investment income |
|
| 0.00 |
|
|
| 0.00 |
|
|
| (0.82 |
) |
|
| (0.06 |
) |
|
| (0.37 |
) |
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (1.12 |
) |
|
| (2.49 |
) |
|
| (7.40 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (1.94 |
) |
|
| (2.55 |
) |
|
| (7.77 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.02 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
36.13 |
|
| $ |
35.04 |
|
| $ |
48.85 |
|
| $ |
30.83 |
|
| $ |
34.94 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 15.33 |
% |
|
| (17.40 |
)% |
|
| 66.22 |
% |
|
| (5.22 |
)% |
|
| (0.42 |
)% |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment income (loss) to average net assets |
|
| 0.13 |
% |
|
| (0.38 |
)% |
|
| (0.51 |
)% |
|
| 0.04 |
% |
|
| 0.12 |
% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.46 |
% |
|
| 1.46 |
% |
|
| 1.43 |
% |
|
| 1.48 |
% |
|
| 1.48 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
2,451 |
|
| $ |
2,057 |
|
| $ |
3,403 |
|
| $ |
1,648 |
|
| $ |
4,572 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 54 |
% |
|
| 57 |
% |
|
| 72 |
% |
|
| 76 |
% |
|
| 57 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
71
MERIDIAN
CONTRARIAN FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class C |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
33.56 |
|
| $ |
47.38 |
|
| $ |
30.13 |
|
| $ |
34.37 |
|
| $ |
43.77 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.20 |
) |
|
| (0.43 |
) |
|
| (0.53 |
) |
|
| (0.17 |
) |
|
| (0.18 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 4.72 |
|
|
| (6.91 |
) |
|
| 19.69 |
|
|
| (1.58 |
) |
|
| (1.60 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 4.52 |
|
|
| (7.34 |
) |
|
| 19.16 |
|
|
| (1.75 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net investment income |
|
| 0.00 |
|
|
| 0.00 |
|
|
| (0.79 |
) |
|
| 0.00 |
|
|
| (0.22 |
) |
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (1.12 |
) |
|
| (2.49 |
) |
|
| (7.40 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (1.91 |
) |
|
| (2.49 |
) |
|
| (7.62 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.01 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
34.16 |
|
| $ |
33.56 |
|
| $ |
47.38 |
|
| $ |
30.13 |
|
| $ |
34.37 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 14.50 |
% |
|
| (18.01 |
)% |
|
| 65.03 |
% |
|
| (5.86 |
)%4 |
|
| (1.06 |
)%4 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.59 |
)% |
|
| (1.06 |
)% |
|
| (1.27 |
)% |
|
| (0.55 |
)% |
|
| (0.50 |
)% |
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
expenses |
|
| 2.23 |
% |
|
| 2.19 |
% |
|
| 2.16 |
% |
|
| 2.17 |
% |
|
| 2.14 |
% |
|
|
| |
|
|
|
|
|
| |
After
fees waived5
|
|
| 2.20 |
% |
|
| 2.19 |
% |
|
| 2.16 |
% |
|
| 2.17 |
% |
|
| 2.14 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
583 |
|
| $ |
403 |
|
| $ |
193 |
|
| $ |
49 |
|
| $ |
49 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 54 |
% |
|
| 57 |
% |
|
| 72 |
% |
|
| 76 |
% |
|
| 57 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
4 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
5 |
See
Note 6 to Financial Statements as contained in the Annual Report to
shareholders for the fiscal year ended June 30,
2023. |
72
MERIDIAN
CONTRARIAN FUND FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Investor Class |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
35.89 |
|
| $ |
49.77 |
|
| $ |
31.37 |
|
| $ |
35.63 |
|
| $ |
44.90 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment income (loss)1
|
|
| 0.16 |
|
|
| (0.05 |
) |
|
| (0.11 |
) |
|
| 0.12 |
|
|
| 0.18 |
|
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 5.09 |
|
|
| (7.34 |
) |
|
| 20.54 |
|
|
| (1.61 |
) |
|
| (1.63 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 5.25 |
|
|
| (7.39 |
) |
|
| 20.43 |
|
|
| (1.49 |
) |
|
| (1.45 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net investment income |
|
| 0.00 |
|
|
| 0.00 |
|
|
| (0.91 |
) |
|
| (0.28 |
) |
|
| (0.42 |
) |
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (1.12 |
) |
|
| (2.49 |
) |
|
| (7.40 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (3.92 |
) |
|
| (6.49 |
) |
|
| (2.03 |
) |
|
| (2.77 |
) |
|
| (7.82 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
37.22 |
|
| $ |
35.89 |
|
| $ |
49.77 |
|
| $ |
31.37 |
|
| $ |
35.63 |
|
|
|
| |
|
|
|
|
|
Total
return |
|
| 15.65 |
% |
|
| (17.21 |
)% |
|
| 66.65 |
% |
|
| (4.96 |
)% |
|
| (0.11 |
)% |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment income (loss) to average net assets |
|
| 0.43 |
% |
|
| (0.11 |
)% |
|
| (0.28 |
)% |
|
| 0.37 |
% |
|
| 0.45 |
% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.19 |
% |
|
| 1.18 |
% |
|
| 1.19 |
% |
|
| 1.19 |
% |
|
| 1.18 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
16,487 |
|
| $ |
11,088 |
|
| $ |
5,690 |
|
| $ |
1,936 |
|
| $ |
3,484 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 54 |
% |
|
| 57 |
% |
|
| 72 |
% |
|
| 76 |
% |
|
| 57 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Less
than $0.005 per share. |
73
MERIDIAN
HEDGED EQUITY FUND
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class A |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
11.94 |
|
| $ |
17.48 |
|
| $ |
14.97 |
|
| $ |
18.31 |
|
| $ |
18.48 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.02 |
) |
|
| (0.10 |
) |
|
| (0.11 |
) |
|
| (0.08 |
) |
|
| (0.21 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.23 |
|
|
| (1.68 |
) |
|
| 4.76 |
|
|
| 2.61 |
|
|
| 1.59 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.21 |
|
|
| (1.78 |
) |
|
| 4.65 |
|
|
| 2.53 |
|
|
| 1.38 |
|
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.01 |
|
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
12.10 |
|
| $ |
11.94 |
|
| $ |
17.48 |
|
| $ |
14.97 |
|
| $ |
18.31 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 11.05 |
% |
|
| (13.80 |
)% |
|
| 32.78 |
% |
|
| 15.39 |
%4 |
|
| 10.87 |
%4 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.20 |
)% |
|
| (0.63 |
)% |
|
| (0.66 |
)% |
|
| (0.50 |
)% |
|
| (1.27 |
)% |
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
expenses |
|
| 1.62 |
% |
|
| 1.54 |
% |
|
| 1.60 |
% |
|
| 1.64 |
% |
|
| 2.00 |
% |
|
|
| |
|
|
|
|
|
| |
Before
fees waived and before fees waived and excluding recoupment of past waived
fees |
|
| 1.62 |
% |
|
| 1.53 |
% |
|
| 1.57 |
% |
|
| 1.64 |
% |
|
| 2.00 |
% |
|
|
| |
|
|
|
|
|
| |
After
fees waived and excluding recoupment of past waived fees5 |
|
| 1.60 |
% |
|
| 1.53 |
% |
|
| 1.57 |
% |
|
| 1.61 |
% |
|
| 2.00 |
% |
|
|
| |
|
|
|
|
|
| |
After
fees waived and excluding recoupment of past waived fees and interest and
dividend expenses5
|
|
| 1.60 |
% |
|
| 1.53 |
% |
|
| 1.57 |
% |
|
| 1.60 |
% |
|
| 1.55 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
1,414 |
|
| $ |
1,844 |
|
| $ |
2,117 |
|
| $ |
1,770 |
|
| $ |
3,200 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 43 |
% |
|
| 74 |
% |
|
| 96 |
% |
|
| 140 |
% |
|
| 47 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
4 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
5 |
See
Note 6 to Financial Statements as contained in the Annual Report to
shareholders for the fiscal year ended June 30,
2023. |
74
MERIDIAN
HEDGED EQUITY FUND
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class C |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
11.57 |
|
| $ |
17.13 |
|
| $ |
14.76 |
|
| $ |
18.17 |
|
| $ |
18.44 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.07 |
) |
|
| (0.15 |
) |
|
| (0.17 |
) |
|
| (0.11 |
) |
|
| (0.27 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.19 |
|
|
| (1.65 |
) |
|
| 4.68 |
|
|
| 2.58 |
|
|
| 1.55 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.12 |
|
|
| (1.80 |
) |
|
| 4.51 |
|
|
| 2.47 |
|
|
| 1.28 |
|
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
11.64 |
|
| $ |
11.57 |
|
| $ |
17.13 |
|
| $ |
14.76 |
|
| $ |
18.17 |
|
|
|
| |
|
|
|
|
|
Total
return2 |
|
| 10.60 |
% |
|
| (14.23 |
)% |
|
| 32.27 |
% |
|
| 15.08 |
% |
|
| 10.31 |
% |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.60 |
)% |
|
| (1.05 |
)% |
|
| (1.05 |
)% |
|
| (0.77 |
)% |
|
| (1.60 |
)% |
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
expenses |
|
| 2.25 |
% |
|
| 2.17 |
% |
|
| 2.20 |
% |
|
| 2.25 |
% |
|
| 2.35 |
% |
|
|
| |
|
|
|
|
|
| |
Before
fees waived and excluding recoupment of past waived fees |
|
| 2.25 |
% |
|
| 2.17 |
% |
|
| 2.20 |
% |
|
| 2.25 |
% |
|
| 2.32 |
% |
|
|
| |
|
|
|
|
|
| |
After
fees waived and excluding recoupment of past waived fees3 |
|
| 2.00 |
% |
|
| 2.00 |
% |
|
| 2.00 |
% |
|
| 2.02 |
% |
|
| 2.32 |
% |
|
|
| |
|
|
|
|
|
| |
After
fees waived and excluding recoupment of past waived fees and interest and
dividend expenses3
|
|
| 2.00 |
% |
|
| 2.00 |
% |
|
| 2.00 |
% |
|
| 2.00 |
% |
|
| 1.97 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
24 |
|
| $ |
58 |
|
| $ |
10 |
|
| $ |
30 |
|
| $ |
2 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 43 |
% |
|
| 74 |
% |
|
| 96 |
% |
|
| 140 |
% |
|
| 47 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Excludes
the effects of any sales charges. |
3 |
See
Note 6 to Financial Statements as contained in the Annual Report to
shareholders for the fiscal year ended June 30,
2023. |
75
MERIDIAN
HEDGED EQUITY FUND
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Investor Class |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
12.22 |
|
| $ |
17.76 |
|
| $ |
15.12 |
|
| $ |
18.40 |
|
| $ |
18.61 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment income (loss)1
|
|
| 0.01 |
|
|
| (0.04 |
) |
|
| (0.04 |
) |
|
| (0.03 |
) |
|
| (0.18 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.27 |
|
|
| (1.74 |
) |
|
| 4.81 |
|
|
| 2.62 |
|
|
| 1.60 |
|
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.28 |
|
|
| (1.78 |
) |
|
| 4.77 |
|
|
| 2.59 |
|
|
| 1.42 |
|
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net investment income |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
|
|
| (0.08 |
) |
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.55 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.05 |
) |
|
| (3.76 |
) |
|
| (2.14 |
) |
|
| (5.88 |
) |
|
| (1.63 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.01 |
|
|
| 0.01 |
|
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
12.45 |
|
| $ |
12.22 |
|
| $ |
17.76 |
|
| $ |
15.12 |
|
| $ |
18.40 |
|
|
|
| |
|
|
|
|
|
Total
return |
|
| 11.38 |
% |
|
| (13.55 |
)% |
|
| 33.37 |
% |
|
| 15.65 |
% |
|
| 11.22 |
%3 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment income (loss) to average net assets |
|
| 0.09 |
% |
|
| (0.27 |
)% |
|
| (0.26 |
)% |
|
| (0.17 |
)% |
|
| (1.05 |
)% |
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
expenses |
|
| 1.33 |
% |
|
| 1.19 |
% |
|
| 1.20 |
% |
|
| 1.35 |
% |
|
| 1.70 |
% |
|
|
| |
|
|
|
|
|
| |
Excluding
recoupment of past waived fees |
|
| 1.33 |
% |
|
| 1.19 |
% |
|
| 1.20 |
% |
|
| 1.35 |
% |
|
| 1.70 |
% |
|
|
| |
|
|
|
|
|
| |
Excluding
recoupment of past waived fees and interest and dividend expenses |
|
| 1.33 |
% |
|
| 1.19 |
% |
|
| 1.20 |
% |
|
| 1.34 |
% |
|
| 1.22 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
2,168 |
|
| $ |
2,031 |
|
| $ |
1,957 |
|
| $ |
1,681 |
|
| $ |
1,014 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 43 |
% |
|
| 74 |
% |
|
| 96 |
% |
|
| 140 |
% |
|
| 47 |
% |
|
|
| |
1 |
Per
share net investment income (loss) has been calculated using the average
daily shares method. |
2 |
Less
than $0.005 per share. |
3 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
76
MERIDIAN
SMALL CAP GROWTH
FUND FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class A |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
11.31 |
|
| $ |
22.62 |
|
| $ |
14.33 |
|
| $ |
15.42 |
|
| $ |
17.76 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.12 |
) |
|
| (0.21 |
) |
|
| (0.20 |
) |
|
| (0.11 |
) |
|
| (0.12 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.72 |
|
|
| (5.74 |
) |
|
| 8.88 |
|
|
| (0.05 |
) |
|
| (0.44 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.60 |
|
|
| (5.95 |
) |
|
| 8.68 |
|
|
| (0.16 |
) |
|
| (0.56 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
11.38 |
|
| $ |
11.31 |
|
| $ |
22.62 |
|
| $ |
14.33 |
|
| $ |
15.42 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 15.90 |
% |
|
| (32.63 |
)% |
|
| 61.05 |
% |
|
| (1.59 |
)% |
|
| (1.81 |
)%4 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (1.04 |
)%5 |
|
| (1.22 |
)%5 |
|
| (1.10 |
)%5 |
|
| (0.80 |
)% |
|
| (0.74 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.49 |
%5 |
|
| 1.49 |
%5 |
|
| 1.48 |
%5 |
|
| 1.49 |
% |
|
| 1.44 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
14,667 |
|
| $ |
20,946 |
|
| $ |
35,335 |
|
| $ |
33,878 |
|
| $ |
45,376 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 53 |
% |
|
| 45 |
% |
|
| 32 |
% |
|
| 40 |
% |
|
| 43 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
4 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
5 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
77
MERIDIAN
SMALL CAP GROWTH
FUND FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Class C |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
10.59 |
|
| $ |
21.68 |
|
| $ |
13.84 |
|
| $ |
15.02 |
|
| $ |
17.46 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.19 |
) |
|
| (0.31 |
) |
|
| (0.32 |
) |
|
| (0.21 |
) |
|
| (0.24 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.59 |
|
|
| (5.42 |
) |
|
| 8.55 |
|
|
| (0.04 |
) |
|
| (0.42 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.40 |
|
|
| (5.73 |
) |
|
| 8.23 |
|
|
| (0.25 |
) |
|
| (0.66 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
10.46 |
|
| $ |
10.59 |
|
| $ |
21.68 |
|
| $ |
13.84 |
|
| $ |
15.02 |
|
|
|
| |
|
|
|
|
|
Total
return3 |
|
| 15.03 |
% |
|
| (33.10 |
)% |
|
| 59.94 |
% |
|
| (2.25 |
)% |
|
| (2.45 |
)% |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (1.79 |
)%4 |
|
| (1.90 |
)%4 |
|
| (1.78 |
)%4 |
|
| (1.47 |
)% |
|
| (1.45 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 2.22 |
%4 |
|
| 2.17 |
%4 |
|
| 2.16 |
%4 |
|
| 2.18 |
% |
|
| 2.16 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
3,374 |
|
| $ |
4,241 |
|
| $ |
8,324 |
|
| $ |
6,922 |
|
| $ |
13,255 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 53 |
% |
|
| 45 |
% |
|
| 32 |
% |
|
| 40 |
% |
|
| 43 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Less
than $0.005 per share. |
3 |
Excludes
the effects of any sales charges. |
4 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
78
MERIDIAN
SMALL CAP GROWTH
FUND FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
| FOR THE FISCAL YEAR ENDED
JUNE 30, |
|
|
|
|
|
|
| |
Investor Class |
| 2023 |
|
| 2022 |
|
| 2021 |
|
| 2020 |
|
| 2019 |
|
|
| |
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
| $ |
11.72 |
|
| $ |
23.17 |
|
| $ |
14.63 |
|
| $ |
15.70 |
|
| $ |
17.99 |
|
|
|
| |
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Net
investment loss1
|
|
| (0.09 |
) |
|
| (0.17 |
) |
|
| (0.15 |
) |
|
| (0.09 |
) |
|
| (0.09 |
) |
|
|
| |
|
|
|
|
|
| |
Net
realized and unrealized gain (loss) |
|
| 1.79 |
|
|
| (5.92 |
) |
|
| 9.08 |
|
|
| (0.05 |
) |
|
| (0.42 |
) |
|
|
| |
|
|
|
|
|
Net
increase (decrease) from investment operations |
|
| 1.70 |
|
|
| (6.09 |
) |
|
| 8.93 |
|
|
| (0.14 |
) |
|
| (0.51 |
) |
|
|
| |
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Distributions
from net realized capital gains |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Total
distributions to shareholders |
|
| (1.53 |
) |
|
| (5.36 |
) |
|
| (0.39 |
) |
|
| (0.93 |
) |
|
| (1.78 |
) |
|
|
| |
|
|
|
|
|
Redemption
fees |
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
| 0.00 |
|
|
| 0.00 |
2 |
|
| 0.00 |
2 |
|
|
| |
|
|
|
|
|
Net
asset value, end of year |
| $ |
11.89 |
|
| $ |
11.72 |
|
| $ |
23.17 |
|
| $ |
14.63 |
|
| $ |
15.70 |
|
|
|
| |
|
|
|
|
|
Total
return |
|
| 16.21 |
% |
|
| (32.44 |
)% |
|
| 61.51 |
% |
|
| (1.43 |
)%3 |
|
| (1.50 |
)%3 |
|
|
| |
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratio
of net investment loss to average net assets |
|
| (0.79 |
)%4 |
|
| (0.94 |
)%4 |
|
| (0.80 |
)%4 |
|
| (0.59 |
)% |
|
| (0.53 |
)% |
|
|
| |
Ratio
of expenses to average net assets |
|
| 1.24 |
%4 |
|
| 1.22 |
%4 |
|
| 1.17 |
%4 |
|
| 1.29 |
% |
|
| 1.22 |
% |
|
|
| |
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
Assets, End of Year (000’s) |
| $ |
437,966 |
|
| $ |
442,418 |
|
| $ |
920,317 |
|
| $ |
666,635 |
|
| $ |
844,975 |
|
|
|
| |
Portfolio
Turnover Rate |
|
| 53 |
% |
|
| 45 |
% |
|
| 32 |
% |
|
| 40 |
% |
|
| 43 |
% |
|
|
| |
1 |
Per
share net investment loss has been calculated using the average daily
shares method. |
2 |
Less
than $0.005 per share. |
3 |
The
total return is based on beginning and ending Financial Statement Net
Asset Value as shown above, which may differ from the traded Net Asset
Value, due to rounding. |
4 |
These
ratios exclude the impact of expenses of the underlying private investment
funds in which the Fund invests as represented in the Schedule of
Investments as contained in the Annual Report to shareholders for the
fiscal year ended June 30, 2023. |
79
For more information about MERIDIAN
FUND, INC.® the following documents are
available free upon request. You can download shareholder reports and the Funds’
Statement of Additional Information at no cost from our website at www.arrowmarkpartners.com/meridian.
Annual/Semi-annual
Reports:
The
Funds’ Annual and Semi-annual Reports to Shareholders contain detailed
information about the Funds’ portfolios.
In
the Funds’ Annual Report, you will find a discussion of market conditions and
investment strategies that significantly affected the Funds’ performance during
the last fiscal year.
Statement
of Additional Information (SAI):
The
SAI provides additional information about the
Funds, including operations and investment strategies. It is incorporated by
reference into this Prospectus and is legally considered a part of this
Prospectus.
You
may obtain free copies of the reports and the SAI, request other information or
make shareholder inquiries, by visiting the Meridian Fund, Inc. website at www.arrowmarkpartners.com/meridian. To
request additional information or to speak with a representative of the Funds,
contact us at:
MERIDIAN
FUND, INC.®
P.O.
Box 9792
Providence,
RI 02940-9694
1‑800‑446‑6662
You
can also review the Funds’ reports and SAI on the EDGAR Database on the
Securities and Exchange Commission’s website at http://www.sec.gov.
Copies
of this information may be obtained by submitting a request at the following
E‑mail address and paying a duplication fee:
[email protected].
(Investment
Company Act File No. 811‑04014)
Link
to SAI