Carillon Mutual Funds
Prospectus
March 1, 2019
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These securities have not been approved or disapproved by the Securities and Exchange Commission (“Commission”), nor has the Commission passed upon the accuracy or adequacy of the Funds’ Prospectus. Any representation to the contrary is a criminal offense.
Equity Funds | Class A | Class C | Class I | Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Carillon ClariVest Capital Appreciation Fund | HRCPX | HRCCX | HRCIX | HRCYX | HRCLX | HRCMX | HRCUX |
Carillon ClariVest International Stock Fund | EISAX | EISDX | EISIX | EISYX | EISRX | EISSX | EISVX |
Carillon Cougar Tactical Allocation Fund | ETAFX | ETDFX | ETIFX | ETYFX | ETRFX | ETSFX | ETUFX |
Carillon Eagle Growth & Income Fund | HRCVX | HIGCX | HIGJX | HIGYX | HIGRX | HIGSX | HIGUX |
Carillon Eagle Mid Cap Growth Fund | HAGAX | HAGCX | HAGIX | HRAYX | HAREX | HARSX | HRAUX |
Carillon Eagle Small Cap Growth Fund | HRSCX | HSCCX | HSIIX | HSRYX | HSRRX | HSRSX | HSRUX |
Carillon Scout International Fund | CSIGX | CSIHX | UMBWX | CSIZX | CSIQX | CSIUX | CSIWX |
Carillon Scout Mid Cap Fund | CSMEX | CSMFX | UMBMX | CSMZX | CSMRX | CSMSX | CSMUX |
Carillon Scout Small Cap Fund | CSSAX | CSSJX | UMBHX | CSSWX | CSSQX | CSSSX | CSSVX |
Fixed Income Funds | Class A | Class C | Class I | Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Carillon Reams Core Bond Fund | CRCBX | CRCDX | SCCIX | SCCYX | CRCQX | CRCSX | CRCUX |
Carillon Reams Core Plus Bond Fund | SCPDX | SCPEX | SCPZX | SCPYX | SCPUX | SCPVX | SCPWX |
Carillon Reams Unconstrained Bond Fund | SUBDX | SUBEX | SUBFX | SUBYX | SUBRX | SUBSX | SUBTX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from a Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund or your financial intermediary electronically by going to carillontower.com/eDelivery.
You may elect to receive all future reports in paper free of charge. You can inform a Fund that you wish to continue receiving paper copies of your shareholder reports by calling 800.421.4184, or you may directly inform your financial intermediary of your wish. A notice that will be mailed to you each time a report is posted will also include instructions for informing a Fund that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper from a Fund will apply to all Funds held with the Carillon Mutual Funds or your financial intermediary, as applicable.
These securities have not been approved or disapproved by the Securities and Exchange Commission (“Commission”), nor has the Commission passed upon the accuracy or adequacy of the Funds’ Prospectus. Any representation to the contrary is a criminal offense.
Summaries
More Information About the Funds
Carillon
Mutual Funds
Summary of carillon clarivest capital
appreciation fund | 3.1.2019
Investment objective | The Carillon ClariVest Capital Appreciation Fund (“Capital Appreciation Fund” or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Capital Appreciation Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class
Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.27% | 0.29%(b) | 0.28% | 0.70% | 0.37% | 0.26% | 0.19% |
Total Annual Fund Operating Expenses | 1.12% | 1.89% | 0.88% | 1.55% | 1.47% | 0.86% | 0.79% |
Fee Waiver and/or Expense Reimbursement (c) | (0.12)% | (0.14)% | (0.18)% | (0.55)% | (0.22)% | (0.16)% | (0.19)% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 1.00% | 1.75% | 0.70% | 1.00% | 1.25% | 0.70% | 0.60% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other expenses have been restated to reflect the current administrative services fee rate.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 1.00%, Class C – 1.75%, Class I – 0.70%, Class Y – 1.00%, Class R-3 – 1.25%, Class R-5 – 0.70%, and Class R-6 – 0.60%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Carillon
Mutual Funds
Summary of carillon clarivest capital appreciation fund | 3.1.2019
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $572 | $803 | $1,052 | $1,763 |
Class C | $278 | $580 | $1,008 | $2,200 |
Class I | $72 | $263 | $470 | $1,068 |
Class Y | $102 | $436 | $793 | $1,799 |
Class R-3 | $127 | $443 | $782 | $1,739 |
Class R-5 | $72 | $258 | $461 | $1,046 |
Class R-6 | $61 | $233 | $420 | $960 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 45% of the average value of its portfolio.
Principal investment strategies | During normal market conditions, the Capital Appreciation Fund seeks to achieve its objective by investing at least 65% of its net assets in common stocks of companies that have the potential for attractive long-term growth in earnings, cash flow and total worth of the company. In addition, the portfolio management team prefers to purchase stocks that appear to be underpriced in relation to the company’s long-term growth fundamentals. The strategy of the fund’s portfolio management team is based upon systematic analysis of fundamental and technical factors, significantly aided by a quantitative process. The fund typically invests in the stocks of large- and mid-capitalization companies, but may invest in the stocks of companies of any size without regard to market capitalization. Although the portfolio management team generally does not emphasize investment in any particular investment sector or industry, the fund may invest a significant portion of its assets in the securities of companies in the information technology sector at any given time. The fund may sell securities when they no longer meet the portfolio management team’s investment criteria.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) also increases and decreases. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
•Equity securities are subject to stock market risk.
Common stock. The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
•Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield;
•Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies;
•Quantitative strategy risk is the risk that the success of the fund’s investment strategy may depend in part on the effectiveness of the sub-adviser’s quantitative tools for screening securities. These strategies may incorporate factors that are not predictive of a security’s value. Additionally, a previously successful strategy may become outdated or inaccurate, possibly resulting in losses;
•Sector risk is the risk associated with the fund holding a core portfolio of stocks invested in similar businesses, all of which could be affected by the same economic or market conditions.
Information technology sector risk is the risk that products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies; and
•Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment.
Carillon
Mutual Funds
Summary
of carillon clarivest capital appreciation fund | 3.1.2019
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 22.27% | June 30, 2009 |
Worst Quarter | (17.24)% | December 31, 2018 |
Average
annual total returns
(for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs) |
Class I – Before Taxes | 3/21/06 | (6.93)% | 9.68% | 15.29% | |
After Taxes on Distributions | (9.03)% | 7.21% | 13.70% | ||
After Taxes on Distributions and Sale of Fund Shares | (2.66)% | 7.37% | 12.74% | ||
Class A – Before Taxes | 12/12/85 | (11.60)% | 8.30% | 14.37% | |
Class C – Before Taxes | 4/3/95 | (7.89)% | 8.52% | 14.07% | |
Class Y – Before Taxes | 11/20/17 | (7.21)% | (4.44)% | ||
Class R-3 – Before Taxes | 9/12/07 | (7.42)% | 9.01% | 14.59% | |
Class R-5 – Before Taxes | 10/2/06 | (6.92)% | 9.67% | 15.30% | |
Class R-6 – Before Taxes | 7/31/15 | (6.83)% | 7.38% |
Carillon
Mutual Funds
Summary of carillon clarivest capital appreciation fund | 3.1.2019
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From the inception date of Class Y Shares) |
Lifetime (From the inception date of Class R-6 Shares) |
Russell 1000® Growth Index (Lifetime period is measured from the inception date of Class I shares) | -1.51% | 10.40% | 15.29% | 1.17% | 9.17% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | ClariVest Asset Management LLC (“ClariVest”) serves as the sub-adviser to the fund.
Portfolio Managers | David J. Pavan, CFA®, C. Frank Feng, Ph.D., Ed Wagner, CFA®, and Todd N. Wolter, CFA® are Portfolio Co-Managers of the fund. Mr. Pavan, Dr. Feng, Mr. Wagner and Mr. Wolter are jointly and primarily responsible for the day-to-day management of the fund. Messrs. Pavan, Feng, and Wagner have been Portfolio Co-Managers of the fund since 2013. Mr. Wolter has served as the fund’s Portfolio Co-Manager since February 2019.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
4 | carillontower.com
Carillon Mutual Funds
Summary of carillon clarivest international stock fund | 3.1.2019
Investment objective | The Carillon ClariVest International Stock Fund (“International Stock Fund” or the “fund”) seeks capital appreciation.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the International Stock Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses (b) | 1.90% | 1.98% | 1.89% | 2.64% | 1.97% | 3.96% | 2.11% |
Total Annual Fund Operating Expenses | 2.85% | 3.68% | 2.59% | 3.59% | 3.17% | 4.66%(b) | 2.81% |
Fee Waiver and/or Expense Reimbursement (c) | (1.40)% | (1.48)% | (1.44)% | (2.14)% | (1.47)% | (3.51)% | (1.76)% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 1.45% | 2.20% | 1.15% | 1.45% | 1.70% | 1.15% | 1.05% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other Expenses may include Acquired Fund Fees and Expenses of up to 0.01%. Accordingly, the Total Annual Fund Operating Expenses may not correlate to the ratio of expenses to average net assets provided in the fund’s Financial Highlights table, which reflects the operating expenses of the fund and does not include Acquired Fund Fees and Expenses.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 1.45%, Class C – 2.20%, Class I – 1.15%, Class Y – 1.45%, Class R-3 - 1.70%, Class R-5 – 1.15%, and Class R-6 – 1.05%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Carillon Mutual Funds
Summary of carillon clarivest international stock fund | 3.1.2019
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $616 | $1,190 | $1,789 | $3,404 |
Class C | $323 | $990 | $1,777 | $3,837 |
Class I | $117 | $668 | $1,246 | $2,817 |
Class Y | $148 | $902 | $1,677 | $3,713 |
Class R-3 | $173 | $840 | $1,531 | $3,374 |
Class R-5 | $117 | $1,088 | $2,066 | $4,540 |
Class R-6 | $107 | $704 | $1,328 | $3,010 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 49% of the average value of its portfolio.
Principal investment strategies | The International Stock Fund invests, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of companies economically tied to countries outside of the U.S. Equity securities include common and preferred stocks, warrants or rights exercisable into common or preferred stock, convertible preferred stock, American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”). Issuers considered to be economically tied to countries outside of the U.S. include, without limitation: (1) an issuer organized under the laws of or maintaining a principal office or principal place(s) of business outside of the U.S.; (2) an issuer of securities that are principally traded in one or more markets outside the U.S.; (3) an issuer that derives or is currently expected to derive 50% or more of its total sales, revenues, profits, earnings, growth, or another measure of economic activity from, the production or sale of goods or performance of services or making of investments or other economic activity in, outside of the U.S., or that maintains or is currently expected to maintain 50% or more of its employees, assets, investments, operations, or other business activity outside of the U.S.; (4) a governmental or quasi-governmental entity of a country outside of the U.S.; or (5) any other issuer that the sub-adviser believes may expose the fund’s assets to the economic fortunes and risks of a country or countries outside of the U.S. The fund typically does not invest in issuers located in emerging market countries. The fund’s benchmark is the MSCI EAFE® Index which measures large- and mid-cap equity performance across 21 of 23 developed countries, excluding the U.S. and Canada.
In selecting securities for the fund, the sub-adviser utilizes quantitative tools to implement a “bottom-up,” fundamentally based, investment process. The sub-adviser constructs a portfolio that seeks to maximize expected return, subject to constraints designed to meet long-run expected active risk goals.
The fund may invest in exchange-traded funds (“ETFs”) in order to equitize cash positions, seek exposure to certain markets or market sectors and to hedge against certain market movements. The fund may sell securities when they no longer meet the portfolio managers’ investment criteria and/or to take advantage of more attractive investment opportunities.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
• Equity securities are subject to stock market risk.
Common stock. The value of a company’s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock and convertible preferred stock. Preferred stocks and convertible preferred stocks are sensitive to movements in interest rates. Preferred stocks and convertible preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks and convertible preferred stocks generally are payable at the discretion of an issuer
6 | carillontower.com
Carillon Mutual Funds
Summary of carillon clarivest international stock fund | 3.1.2019
and after required payments to bond holders;
Depositary receipts. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities;
Rights and warrants. Rights and warrants do not carry dividend or voting rights with respect to the underlying securities or any rights in the assets of the issuer, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date;
•Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. The risks associated with investments in governmental or quasi-governmental entities of a foreign country are heightened by the potential for unexpected governmental change and inadequate government oversight. Foreign security risk may also apply to ADRs, GDRs and EDRs;
•Growth
stock risk is the risk of a lack of earnings increase or lack of dividend yield;
•Liquidity risk is the possibility that, during times of widespread market turbulence, trading activity in certain securities may be significantly hampered, which may reduce the returns of the fund because it may be unable to sell the
securities at an advantageous price or time. Market prices for such securties may be volatile;
•Market timing risk arises because certain types of securities in which the fund invests, including foreign securities, could cause the fund to be at greater risk of market timing activities by fund shareholders;
•Investing
in other investment companies, including ETFs, carries with it the risk that, by
investing in another investment company, the fund will be exposed to the risks
of the types of investments in which the investment company invests. The fund
and its shareholders will indirectly bear the fund’s proportionate share of the
fees and expenses paid by shareholders of the other investment company, in
addition to the fees and expenses fund shareholders directly bear in connection
with the fund’s own operations. ETF shares may trade at a premium or discount to
their net asset value. An ETF that tracks an index may not precisely replicate
the returns of its benchmark index;
•Quantitative strategy risk is the risk that the success of the fund’s investment strategy may depend in part on the effectiveness of the sub-adviser’s quantitative tools for screening securities. These strategies may incorporate factors that are not predictive of a security’s value. Additionally, a previously successful strategy may become outdated or inaccurate, possibly resulting in losses; and
•Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment.
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During performance period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 8.01% | March 31, 2015 |
Worst Quarter | (15.62)% | December 31, 2018 |
Carillon Mutual Funds
Summary of carillon clarivest international stock fund | 3.1.2019
Average
annual total returns
(for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr |
Lifetime (if less than 10 yrs) |
Class I –Before Taxes | 2/28/13 |
(17.85)% |
0.88% |
3.75% |
After Taxes on Distributions | (18.20)% | 0.15% | 3.03% | |
After Taxes on Distributions and Sale of Fund Shares | (10.32)% | 0.56% | 2.81% | |
Class A – Before Taxes | 2/28/13 | (21.98)% | (0.50)% | 2.47% |
Class C – Before Taxes | 2/28/13 | (18.75)% | (0.31)% | 2.51% |
Class Y – Before Taxes | 11/20/17 | (18.15)% | (14.01)% | |
Class R-3 – Before Taxes | 2/28/13 | (18.31)% | 0.30% | 3.15% |
Class R-5 – Before Taxes | 2/28/13 | (17.89)% | 0.85% | 3.72% |
Class R-6 – Before Taxes | 2/28/13 | (17.79)% | 0.98% | 3.84% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr |
Lifetime (From the inception date of Class Y Shares) |
Lifetime (From Inception Date of Class A, Class C, Class I, Class R-3, Class R-5 and Class R-6 Shares) |
MSCI EAFE® Index |
(13.79)% | 0.53% | (9.92)% | 3.31% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
8 | carillontower.com
Carillon Mutual Funds
Summary
of carillon clarivest international stock fund | 3.1.2019
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | ClariVest Asset Management LLC (“ClariVest”) serves as the sub-adviser to the fund.
Portfolio Managers | David R. Vaughn, CFA®, Alex Turner, CFA®, and Priyanshu Mutreja, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund – Mr. Vaughn since its inception, Mr. Turner since 2015, and Mr. Mutreja since 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Shareholder fees
(fees
paid directly from your investment): |
Class
A |
Class
C |
Class
I |
Class
Y |
Class
R-3 |
Class
R-5 |
Class
R-6 |
Maximum
Sales Charge Imposed on Purchases (as a % of offering price) |
4.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (as a % of original purchase price or redemption
proceeds, whichever is lower) |
None
(a) |
1.00%
(a) |
None |
None |
None |
None |
None |
Redemption
Fee |
None |
None |
None |
None |
None |
None |
None |
Annual
fund operating expenses
(expenses
that you pay each year as a percentage of the value of your investment):
|
Class
A |
Class
C |
Class
I |
Class
Y |
Class
R-3 |
Class
R-5 |
Class
R-6 |
Management
Fees |
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
0.57%
|
Distribution
and Service (12b-1) Fees |
0.25%
|
1.00%
|
0.00%
|
0.25%
|
0.50%
|
0.00%
|
0.00%
|
Other
Expenses |
1.80%
|
1.83%
|
1.85%
|
2.50%
|
2.42%
|
2.03%
|
2.35%
|
Acquired
Fund Fees and Expenses |
0.08%
|
0.08%
|
0.08%
|
0.08%
|
0.08%
|
0.08%
|
0.08%
|
Total
Annual Fund Operating Expenses (b) |
2.70%
|
3.48%
|
2.50%
|
3.40%
|
3.57%
|
2.68%
|
3.00%
|
Fee
Waiver and/or Expense Reimbursement (c) |
(1.45)%
|
(1.48)%
|
(1.55)%
|
(2.15)%
|
(2.07)%
|
(1.73)%
|
(2.15)%
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
1.25%
|
2.00%
|
0.95%
|
1.25%
|
1.50%
|
0.95%
|
0.85%
|
Share
Class |
Year
1 |
Year
3 |
Year
5 |
Year
10 |
Class
A |
$596
|
$1,142
|
$1,714
|
$3,261
|
Class
C |
$303
|
$931
|
$1,681
|
$3,658
|
Class
I |
$97
|
$630
|
$1,191
|
$2,719
|
Class
Y |
$127
|
$844
|
$1,584
|
$3,540
|
Class
R-3 |
$153
|
$902
|
$1,673
|
$3,700
|
Class
R-5 |
$97
|
$668
|
$1,265
|
$2,885
|
Class
R-6 |
$87
|
$724
|
$1,387
|
$3,165
|
● |
common
and preferred stocks of all market capitalizations, security types (e.g.,
convertible securities, real estate investment trusts (“REITs”), rights,
warrants and depositary receipts) and investment types (e.g., value and
growth) in global markets; |
● |
fixed-income
securities of any maturity and credit quality, including high yield
securities (commonly referred to as “junk bonds”), convertible debt,
investment grade corporate bonds, municipal bonds, and both domestic and
foreign sovereign debt bonds; and mortgage-backed securities, which are
securities that are created by pooling mortgages, and asset-backed
securities, which are securities that are created from the pooling
non-mortgage assets, such as credit card receivables, home equity loans,
student loans and auto-loans; and |
● |
commodities,
which principally are expected to be
gold. |
● |
Call
risk is the possibility that, as interest rates decline, issuers of
callable bonds may call fixed income securities with high interest rates
prior to their maturity dates, which may force an underlying fund to
invest the unanticipated proceeds at lower interest rates, resulting in a
decline in the fund’s income; |
● |
Commodities
risk is the risk that investments in commodities, such as gold, or in
commodity-linked instruments, will subject an underlying fund’s portfolio
to volatility that may also deviate from price movements in equity and
fixed income securities. Commodities and commodities-linked investments
are subject to substantial price fluctuations over short periods of time
and may be affected by unpredictable economic, political and environmental
events. There may be an imperfect correlation between the value of such
investments and the underlying assets. Investments in these types of
instruments may subject the fund to additional
expenses; |
● |
Credit
risk arises if an issuer of a fixed income security is unable to meet its
financial obligations or goes bankrupt; |
● |
Credit
ratings risk is the risk associated with the fact that ratings by
nationally recognized rating agencies generally represent the agencies’
opinion of the credit quality of an issuer and may prove to be inaccurate;
|
● |
Emerging
markets are generally smaller, less developed, less liquid and more
volatile than the securities markets of the U.S. and other developed
markets. There are also risks of: greater political uncertainties; an
economy’s dependence on revenues from particular commodities or on
international aid or development assistance; currency transfer
restrictions; a limited number of potential buyers for such securities;
and delays and disruptions in securities settlement procedures. When
investing in emerging markets, the risks of investing in foreign
securities are heightened; |
● |
Equity
securities are subject to stock market
risk. |
● |
Fixed
income market risk is the risk that market conditions or other events that
impact fixed income issuers, including adverse issuer, political,
regulatory, market, economic or other developments that may cause broad
changes in market value, public perceptions concerning these developments,
and adverse investor sentiment, will have an adverse effect on the
underlying funds. Events in the fixed income markets may lead to periods
of volatility, unusual liquidity issues and, in some cases, credit
downgrades and increased likelihood of default. Such events may cause the
value of securities owned by the underlying funds to go up or down,
sometimes rapidly or unpredictably, and may lead to increased redemptions,
which could cause the underlying funds to experience a loss when selling
securities to meet redemption requests by
shareholders; |
● |
Focused
holdings risk is the risk of a fund holding a core portfolio of securities
of fewer companies than other diversified funds, which means that the
increase or decrease of the value of a single investment may have a
greater impact on the fund’s NAV and total return when compared to other
diversified funds; |
●
|
Foreign
security risks, which are potential risks not associated with U.S.
investments, include, but are not limited to: (1) currency exchange rate
fluctuations, (2) political and financial instability, (3) less liquidity,
(4) lack of uniform accounting, auditing and financial reporting
standards, (5) increased volatility, (6) less government regulation and
supervision of foreign stock exchanges, brokers and listed companies, and
(7) delays in transaction settlement in some foreign markets. Foreign
security risk may also apply to ADRs, GDRs and EDRs;
|
● |
Fund
of funds risk is the risk that, absent an available exemption, the fund’s
investments in other investment companies, including ETFs, will be subject
to limitations under the Investment Company Act of 1940, as amended (“1940
Act”), and the rules thereunder. Because the fund’s investments are
concentrated in underlying funds, and the fund’s performance is directly
related to the performance of such underlying funds, the ability of the
fund to |
● |
Growth
stock risk is the risk of a lack of earnings increase or lack of dividend
yield; |
●
|
High-yield
security risk results from investments in below investment grade bonds,
which have a greater risk of loss, are susceptible to rising interest
rates and have greater volatility. Investments in high-yield securities
(commonly referred to as “junk bonds”) are inherently speculative;
|
● |
Inflation
risk is the risk that high rates of inflation or changes in the market’s
inflation expectations may adversely affect the market value of
inflation-sensitive securities; |
●
|
Interest
rate risk is the risk that the value of a fund’s investments in fixed
income securities will fall when interest rates rise. The Federal Reserve
raised the federal funds rate several times since December 2015 and may
continue to increase rates in the future. Interest rates may rise,
perhaps significantly and/or rapidly, potentially resulting in substantial
losses to the underlying funds. The effect of increasing interest rates is
more pronounced for any intermediate- or longer-term fixed income
obligations owned by an underlying fund; |
●
|
Liquidity
risk is the possibility that, during times of widespread market
turbulence, trading activity in certain securities may be significantly
hampered, which may reduce the returns of the underlying funds because
they may be unable to sell the securities at an advantageous price or time
or may be forced to sell certain investments at unfavorable prices to meet
redemption requests or other cash needs. Market prices for such securities
may be volatile; |
● |
Market
risk is the risk of broad securities market decline or volatility or a
decline in particular holdings in response to adverse issuer, political,
regulatory, market, economic or other developments, public perceptions
concerning these developments, and adverse investor
sentiment; |
● |
Market
timing risk arises because certain types of securities in which the
underlying funds invest, including small-cap securities, could cause the
underlying funds to be at greater risk of market timing activities by fund
shareholders; |
● |
Mid-cap
company risk arises because mid-cap companies may have narrower commercial
markets, limited managerial and financial resources, more volatile
performance, and less liquid stock, compared to larger, more established
companies; |
● |
Mortgage-
and asset-backed security risk, which is possible in an unstable or
depressed housing market, arises from the potential for mortgage failure,
premature repayment of principal, or a delay in the repayment of
principal; |
● |
Municipal
securities risk is the possibility that a municipal security’s value,
interest payments or repayment of principal could be affected by economic,
legislative or political changes. Municipal securities are also subject to
potential volatility in the municipal market and the fund’s share price,
yield and total return may fluctuate in response to municipal bond market
movements; |
● |
Investing
in other investment companies, including ETFs, carries with it the risk
that, by investing in another investment company, the fund will be exposed
to the risks of the types of investments in which the investment company
invests. The fund and its shareholders will indirectly bear the
fund’s proportionate share of the fees and expenses paid by shareholders
of the other investment company, in addition to the fees and expenses fund
shareholders directly bear in connection with the fund’s own operations.
ETF shares may trade at a premium or discount to their NAV. An ETF that
tracks an index may not precisely replicate the returns of its benchmark
index; |
● |
Portfolio
turnover risk is the risk that performance may be adversely affected by a
high rate of portfolio turnover, which generally leads to greater
transaction costs; |
●
|
Redemption
risk is, with respect to the underlying funds’ fixed income investments,
the risk that, due to a rise in interest rates or other changing
government policies that may cause investors to move out of fixed income
securities on a large scale, the underlying funds may experience periods
of heavy redemptions that could cause the underlying funds to sell assets
at inopportune times or at a loss or depressed value;
|
● |
Small-cap
company risk arises because small-cap companies may have less liquid
stock, a more volatile share price, a limited product or service base,
narrower commercial markets and limited access to capital, compared to
larger, more established companies; |
● |
U.S.
government securities and government-sponsored enterprises risk arises
because a security backed by the U.S. Treasury or the full faith and
credit of the United States is guaranteed by the applicable entity only as
to the timely payment of interest and principal when held to maturity. The
market prices for such securities are not guaranteed and will fluctuate.
Securities held by an underlying fund that are issued by
government-sponsored enterprises, such as the Federal National Mortgage
Association (‘'Fannie Mae''), the Federal Home Loan Mortgage Corporation
(''Freddie Mac''), Federal Home Loan Banks, Federal Farm Credit Banks, and
the Tennessee Valley Authority are not guaranteed by the U.S. Treasury and
are not backed by the full faith and credit of the U.S. Government. U.S.
Government securities and securities of government sponsored enterprises
are also subject to credit risk, interest rate risk and market risk;
and |
● |
Value
stock risk arises from the possibility that a stock’s intrinsic value may
not be fully realized by the market. |
During
performance period |
Return
|
Quarter
Ended |
(Class I shares): |
||
Best
Quarter |
4.82%
|
September
30, 2018 |
Worst
Quarter |
(12.08)%
|
December
31, 2018 |
Share Class |
Inception Date | 1-yr | Lifetime (if less than 10 yrs) |
Class
I – Before Taxes |
12/31/15 | (7.15)% | 2.59% |
After
Taxes on Distributions |
(8.19)%
|
1.80%
| |
After
Taxes on Distributions and Sale of Fund Shares |
(3.67)%
|
1.83%
| |
Class
A – Before Taxes |
12/31/15
|
(11.83)%
|
0.66%
|
Class
C – Before Taxes |
12/31/15
|
(8.07)%
|
1.53%
|
Class
Y – Before Taxes |
11/20/17
|
(7.40)%
|
(4.63)%
|
Class
R-3 – Before Taxes |
12/31/15
|
(7.62)%
|
2.07%
|
Class
R-5 – Before Taxes |
12/31/15
|
(7.18)%
|
2.61%
|
Class
R-6 – Before Taxes |
12/31/15
|
(7.01)%
|
2.72%
|
Index
(reflects no deduction for fees, expenses or taxes) |
1-yr
|
Lifetime
(From
Inception
Date
of Class Y Shares) |
Lifetime
(From
Inception Date of Class A, Class C, Class I, Class R-3, Class R-5 and
Class R-6 Shares) |
60%
Bloomberg Barclays U.S. Aggregate Bond Index/40% MSCI ACWI Index |
(3.63)%
|
(1.92)%
|
4.01%
|
Shareholder
fees
(fees
paid directly from your investment): |
Class
A |
Class
C |
Class
I |
Class
Y |
Class
R-3 |
Class
R-5 |
Class
R-6 |
Maximum
Sales Charge Imposed on Purchases (as a % of offering price) |
4.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (as a % of original purchase price or redemption
proceeds, whichever is lower) |
None
(a) |
1.00%
(a) |
None |
None |
None |
None |
None |
Redemption
Fee |
None |
None |
None |
None |
None |
None |
None |
Annual
fund operating expenses
(expenses
that you pay each year as a percentage of the value of your investment):
|
Class
A
|
Class
C
|
Class
I
|
Class
Y
|
Class
R-3
|
Class
R-5
|
Class
R-6
|
Management
Fees |
0.47%
|
0.47%
|
0.47%
|
0.47%
|
0.47%
|
0.47%
|
0.47%
|
Distribution
and Service (12b-1) Fees |
0.25%
|
1.00%
|
0.00%
|
0.25%
|
0.50%
|
0.00%
|
0.00%
|
Other
Expenses |
0.25%(b)
|
0.26%
|
0.25%
|
0.71%
|
0.33%(b)
|
0.31%
|
0.17%
|
Total
Annual Fund Operating Expenses |
0.97%
|
1.73%
|
0.72%
|
1.43%
|
1.30%
|
0.78%
|
0.64%
|
Fee
Waiver and/or Expense Reimbursement (c) |
0.00%
|
0.00%
|
0.00%
|
(0.18)%
|
0.00%
|
0.00%
|
0.00%
|
Total
Annual Fund Operating Expenses After |
0.97%
|
1.73%
|
0.72%
|
1.25%
|
1.30%
|
0.78%
|
0.64%
|
Share
Class |
Year
1 |
Year
3 |
Year
5 |
Year
10 |
Class
A |
$569
|
$769
|
$986
|
$1,608
|
Class
C |
$276
|
$545
|
$939
|
$2,041
|
Class
I |
$74
|
$230
|
$401
|
$894
|
Class
Y |
$127
|
$435
|
$765
|
$1,698
|
Class
R-3 |
$132
|
$412
|
$713
|
$1,568
|
Class
R-5 |
$80
|
$249
|
$433
|
$966
|
Class
R-6 |
$65
|
$205
|
$357
|
$798
|
● |
Equity
securities are subject to stock market
risk. |
•Focused holdings risk is the risk of a fund holding a core portfolio of securities of fewer companies than other diversified funds, which means that the increase or decrease of the value of a single investment may have a greater impact on the fund’s NAV and total return when compared to other diversified funds;
•Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. Foreign security risk may also apply to ADRs, GDRs and EDRs;
•Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield;
•Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies;
•Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment.
•Value stock risk arises from the possibility that a stock’s intrinsic value may not be fully realized by the market.
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class A share performance from one year to another. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During 10 year period | Return | Quarter Ended |
(Class A shares): | ||
Best Quarter | 23.28% | June 30, 2009 |
Worst Quarter | (11.94)% | September 30, 2011 |
The returns in the preceding bar chart and table do not reflect sales charges. If the sales charges were reflected, the returns would be lower than those shown.
Average annual total returns (for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs) |
Class A – Before Taxes | 12/15/86 | (6.50)% | 5.99% | 11.28% | |
After Taxes on Distributions | (8.59)% | 4.78% | 10.29% | ||
After Taxes on Distributions and Sale of Fund Shares | (2.37)% | 4.60% | 9.29% |
Class C – Before Taxes | 4/3/95 | (2.62)% | 6.21% | 10.99% | |
Class I – Before Taxes | 3/18/09 | (1.64)% | 7.31% | 13.85% | |
Class Y – Before Taxes | 11/20/17 | (2.18)% | 2.82% | ||
Class R-3 – Before Taxes | 9/30/09 | (2.19)% | 6.65% | 9.68% | |
Class R-5 – Before Taxes | 12/28/09 | (1.65)% | 7.20% | 10.16% | |
Class R-6 – Before Taxes | 8/15/11 | (1.51)% | 7.36% | 11.46% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From Inception Date of Class I Shares) |
Lifetime (From Inception Date of Class Y Shares) |
Lifetime (From Inception Date of Class R-3 Shares) |
Lifetime (From Inception Date of Class R-5 Shares) |
Lifetime (From Inception Date of Class R-6 Shares) |
S&P 500® Index
|
(4.38)% | 8.49% | 13.12% | 14.84% | (0.71)% | 12.10% | 11.58% | 12.80% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class A only and after-tax returns for Class C, Class I, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Eagle Asset Management, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | Edmund Cowart, CFA®, David Blount, CFA®, CPA, and Harald Hvideberg, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund. Messrs. Cowart and Blount have been Portfolio Managers of the fund since 2011. Mr. Hvideberg has served as the fund’s Portfolio Manager since 2014.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S.
Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
carillontower.com | 19
Investment objective | The Carillon Eagle Mid Cap Growth Fund (“Mid Cap Growth Fund” or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Mid Cap Growth Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class
Y |
Class R-3
|
Class R-5
|
Class R-6
|
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.52% | 0.52% | 0.52% | 0.52% | 0.52% | 0.52% | 0.52% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.27%(b) | 0.22% | 0.23% | 0.36% | 0.30% | 0.23% | 0.14% |
Total Annual Fund Operating Expenses | 1.04% | 1.74% | 0.75% | 1.13% | 1.32% | 0.75% | 0.66% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other expenses have been restated to reflect the current administrative services fee rate.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $576 | $790 | $1,022 | $1,686 |
Class C | $277 | $548 | $944 | $2,052 |
Class I | $77 | $240 | $417 | $930 |
Class Y | $115 | $359 | $622 | $1,375 |
Class R-3 | $134 | $418 | $723 | $1,590 |
Class R-5 | $77 | $240 | $417 | $930 |
Class R-6 | $67 | $211 | $368 | $822 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s
20 | carillontower.com
portfolio turnover rate was 44% of the average value of its portfolio.
Principal investment strategies | During normal market conditions, the Mid Cap Growth Fund seeks to achieve its objective by investing at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of mid-capitalization companies. The fund’s portfolio managers consider mid-capitalization companies to be those companies that, at the time of initial purchase, have market capitalizations greater than $1 billion and equal to or less than the largest company in the Russell Midcap® Growth Index during the most recent 12-month period (approximately $ 42.0 billion during the 12-month period ended December 31, 2018).
The fund will invest primarily in the equity securities of companies that the portfolio managers believe have the potential for above-average earnings or sales growth, reasonable valuations and acceptable debt levels. Such stocks can typically have high price-to-earnings ratios. Equity securities include common and preferred stock, warrants or rights exercisable into common or preferred stock and high-quality convertible securities. Although the portfolio managers generally do not emphasize investment in any particular investment sector or industry, the fund may invest a significant portion of its assets in the securities of companies in the information technology sector at any given time. The fund will generally sell when the stock has met the portfolio managers’ target price, the investment is no longer valid, a better investment opportunity has arisen or if the investment reaches a value more than 5% of the fund’s net assets. At times, the fund may hold securities of small-capitalization companies.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) also increases and decreases. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
•Equity securities are subject to stock market risk.
Common stock. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders;
Convertible securities. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment value. Convertible securities also are sensitive to movements in interest rates;
Rights and warrants. Rights and warrants do not carry dividend or voting rights with respect to the underlying securities or any rights in the assets of the issuer, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date;
•Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield;
•Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies;
•Sector risk is the risk associated with the fund holding a core portfolio of stocks invested in similar businesses, all of which could be affected by the same economic or market conditions.
Information technology sector risk is the risk that products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies;
•Small-cap company risk arises because small-cap companies may have less liquid stock, a more volatile share price, a limited product or service base, narrower commercial markets and limited access to capital, compared to larger, more established companies; and
•Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment.
carillontower.com | 21
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 18.46% | December 31, 2010 |
Worst Quarter | (21.73)% | September 30, 2011 |
Average annual total returns (for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs) |
Class I –Before Taxes | 6/21/06 | (6.09)% | 8.13% | 14.79% | |
After Taxes on Distributions | (7.22)% | 7.20% | 14.11% | ||
After Taxes on Distributions and Sale of Fund Shares | (2.70)% | 6.32% | 14.46% | ||
Class A – Before Taxes | 8/20/98 | (10.84)% | 6.73% | 13.83% | |
Class C – Before Taxes | 8/20/98 | (7.03)% | 7.01% | 13.57% | |
Class Y – Before Taxes | 11/20/17 | (6.49)% | (5.49)% | ||
Class R-3 – Before Taxes | 1/12/09 | (6.63)% | 7.48% | 14.37% | |
Class R-5 – Before Taxes | 12/28/09 | (6.10)% | 8.10% | 12.08% | |
Class R-6 – Before Taxes | 8/15/11 | (6.01)% | 8.24% | 12.26% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From Inception Date of Class Y Shares) |
Lifetime (From Inception Date of Class R-3 Shares) |
Lifetime (From Inception Date of Class R-5 Shares) Lifetime (From Inception Date of Class R-6 Shares) | Lifetime (From Inception Date of Class R-6 Shares) Lifetime (From Inception Date of Class R-6 Shares) |
Russell Midcap® Growth Index |
(4.75)% | 7.42% | 15.12% | (2.17)% | 15.32% | 11.90% | 11.77% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Eagle Asset Management, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | Bert L. Boksen, CFA®, and Eric Mintz, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for all aspects of the fund’s management. Mr. Boksen has managed the fund since its inception and Mr. Mintz has managed the fund since 2011. Christopher Sassouni, D.M.D., has served as Assistant Portfolio Manager of the fund since 2006.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $ 10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
carillontower.com | 23
Investment objective | The Carillon Eagle Small Cap Growth Fund (“Small Cap Growth Fund” or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Small Cap Growth Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.51% | 0.51% | 0.51% | 0.51% | 0.51% | 0.51% | 0.51% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.28%(b) | 0.23%(b) | 0.24% | 0.36% | 0.31% | 0.24% | 0.14% |
Total Annual Fund Operating Expenses | 1.04% | 1.74% | 0.75% | 1.12% | 1.32% | 0.75% | 0.65% |
(a) If you purchased $1,000,000 or more of Class A shares of an Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other expenses have been restated to reflect the current administrative services fee rate.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $576 | $790 | $1,022 | $1,686 |
Class C | $277 | $548 | $944 | $2,052 |
Class I | $77 | $240 | $417 | $930 |
Class Y | $114 | $356 | $617 | $1,363 |
Class R-3 | $134 | $418 | $723 | $1,590 |
Class R-5 | $77 | $240 | $417 | $930 |
Class R-6 | $66 | $208 | $362 | $810 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 35% of the average value of its portfolio.
Principal investment strategies | During normal market conditions, the Small Cap Growth Fund seeks to achieve its objective by investing at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the stocks of small-capitalization companies. The fund’s portfolio managers consider small-capitalization companies to be those companies that, at the time of initial purchase, have a market capitalization equal to or less than the largest company in the Russell 2000® Growth Index during the most recent 12-month period (approximately $16.7 billion during the 12-month period ended December 31, 2018).
When making their investment decisions, the portfolio managers generally focus on investing in the securities of companies that the portfolio managers believe have accelerating earnings growth rates, reasonable valuations (typically with a price-to-earnings ratio of no more than the earnings growth rate), strong management that participates in the ownership of the company, reasonable debt levels and/or a high or expanding return on equity. Although the portfolio managers generally do not emphasize investment in any particular investment sector or industry, the fund may invest a significant portion of its assets in the securities of companies in the health care sector at any given time. The fund may also purchase, or obtain exposure to, securities in initial public offerings (“IPOs”). The fund will sell securities when they no longer meet the portfolio managers’ investment criteria.
Principal risks | The greatest risk of investing in this fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) also increases and decreases. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
•Equity securities are subject to stock market risk.
Common stock. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
•Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield;
• Initial public offerings risk arises because the market value of shares sold in an IPO may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information about the issuer;
•Market timing risk arises because certain types of securities in which the fund invests, including small-cap securities, could cause the fund to be at greater risk of market timing activities by fund shareholders;
•Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies;
•Sector risk is the risk associated with the fund holding a core portfolio of stocks invested in similar businesses, all of which could be affected by the same economic or market conditions;
The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays in or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector;
•Small-cap company risk arises because small-cap companies may have less liquid stock, a more volatile share price, a limited product or service base, narrower commercial markets and limited access to capital, compared to larger, more established companies;
•Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment; and
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
carillontower.com | 25
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 20.19% | June 30, 2009 |
Worst Quarter | (21.92)% | September 30, 2011 |
Average annual total returns (for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs) |
Class I –Before Taxes | 6/27/06 | (10.17)% | 5.08% | 13.52% | |
After Taxes on Distributions | (14.49)% | 2.71% | 12.20% | ||
After Taxes on Distributions and Sale of Fund Shares | 3.12% | 3.83% | 11.32% | ||
Class A – Before Taxes | 5/7/93 | (14.66)% | 3.73% | 12.61% | |
Class C – Before Taxes | 4/3/95 | (11.05)% | 4.01% | 12.35% | |
Class Y – Before Taxes | 11/20/17 | (10.57)% | (7.66)% | ||
Class R-3 – Before Taxes | 9/19/06 | (10.68)% | 4.46% | 12.89% | |
Class R-5 – Before Taxes | 10/2/06 | (10.16)% | 5.10% | 13.56% | |
Class R-6 – Before Taxes | 8/15/11 | (10.06)% | 5.21% | 9.98% |
26 | carillontower.com
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From the Inception Date of Class Y Shares) |
Lifetime (From the Inception Date of Class R-6 Shares) |
Russell 2000® Growth Index
|
(9.31)% | 5.13% | 13.52% | (6.22)% | 11.02% |
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Eagle Asset Management, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | Bert L. Boksen, CFA®, and Eric Mintz, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for all aspects of the fund’s management. Mr. Boksen has managed the fund since 1995 and Mr. Mintz has managed the fund since 2011. Christopher Sassouni, D.M.D., has served as Assistant Portfolio Manager of the fund since 2015.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
carillontower.com | 27
Summary of carillon scout international fund | 3.1.2019
Investment objective | The Carillon Scout International Fund (“International Fund” or the “fund”) seeks long-term growth of capital and income.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the International Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.26% | 0.43% | 0.27%(b) | 1.11% | 0.86% | 0.86% | 0.19% |
Total Annual Fund Operating Expenses | 1.31% | 2.23% | 1.07% | 2.16% | 2.16% | 1.66% | 0.99% |
Fee Waiver and/or Expense Reimbursement (c) | 0.00% | (0.03)% | 0.00% | (0.71)% | (0.46)% | (0.51)% | 0.00% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 1.31% | 2.20% | 1.07% | 1.45% | 1.70% | 1.15% | 0.99% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other Expenses have been restated to reflect the fee rates that became effective upon the reorganization of the fund on November 20, 2017.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 1.45%, Class C – 2.20%, Class I – 1.15%, Class Y – 1.45%, Class R-3 - 1.70%, Class R-5 – 1.15%, and Class R-6 – 1.05%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $602 | $870 | $1,159 | $1,979 |
Class C | $323 | $694 | $1,192 | $2,562 |
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Summary of carillon scout international fund | 3.1.2019
Class I | $109 | $340 | $590 | $1,306 |
Class Y | $148 | $608 | $1,094 | $2,437 |
Class R-3 | $173 | $632 | $1,117 | $2,457 |
Class R-5 | $117 | $474 | $854 | $1,923 |
Class R-6 | $101 | $315 | $547 | $1,213 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 13% of the average value of its portfolio.
Principal investment strategies | The fund normally pursues its objectives by investing in a diversified portfolio consisting primarily of equity securities of established companies either located outside the United States or whose primary business is carried on outside the United States. The equity securities in which the fund invests include common stocks, depositary receipts, preferred stocks, convertible securities, and warrants and other rights. The fund normally invests at least 80% of its net assets in equity securities as described above.
In selecting securities for the fund, the portfolio management team primarily performs fundamental “bottom-up” analysis to uncover companies that best fit its investment criteria. This includes evaluation of a company’s cash flow, financial strength, profitability, and potential or actual catalysts that could positively impact share prices. The fund primarily seeks to invest in securities of seasoned companies that are known for the quality and acceptance of their products or services.
The portfolio management team also considers geopolitical and macroeconomic issues. In addition, the fund may invest in a company domiciled in the United States if more than 50% of the company’s assets, personnel, sales or earnings are located outside the United States and therefore the company’s primary business is carried on outside the United States.
The portfolio management team believes that the intrinsic worth and consequent value of the stock of most well-managed and successful companies does not usually change rapidly, even though wide variations in the price may occur. Accordingly, long-term positions in stocks will normally be taken and maintained while the companies’ record and prospects continue to meet with the portfolio management team’s approval.
The fund intends to diversify investments among industries and among a number of countries throughout the world. In addition, the fund may invest a substantial portion of its assets (more than 25%) in one or more countries if economic and business conditions warrant such investment. The fund will invest no more than 20% of its net assets in investments in developing countries or emerging markets.
The fund may also invest a portion of its net assets (up to 20%) in high-grade fixed income securities or other investments that may provide income, including cash and money market securities. In such cases, the fund will resume investing primarily in equity securities when conditions warrant.
The fund intends to hold some cash, short-term debt obligations, government securities or other high-quality investments for reserves to cover redemptions and unanticipated expenses. There may be times, however, when the fund attempts to respond to adverse market, economic, political or other conditions by investing a higher percentage of its assets in cash or in those types of money market investments for temporary defensive purposes. During those times, the fund may not be able to pursue its investment objective or follow its principal investment strategies and, instead, will focus on preserving your investment.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
● | Emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. When investing in emerging markets, the risks of investing in foreign securities are heightened; |
● | Equity securities are subject to stock market risk. |
Common stock. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same
Carillon Mutual Funds
Summary of carillon scout international fund | 3.1.2019
industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders;
Convertible securities. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment value. Convertible securities also are sensitive to movements in interest rates;
Depositary receipts. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities;
Rights and warrants. Rights and warrants do not carry dividend or voting rights with respect to the underlying securities or any rights in the assets of the issuer, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date;
● | Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. Foreign security risk may also apply to ADRs, GDRs and EDRs; |
● | Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield; |
● | Liquidity risk is the possibility that, during times of widespread market turbulence, trading activity in certain securities may be significantly hampered, which may reduce the returns of the fund because it may be unable to sell the securities at an advantageous price or time; Market prices for such securities may be volatile; |
● | Market timing risk arises because certain types of securities in which the fund invests, including small-cap securities, could cause the fund to be at greater risk of market timing activities by fund shareholders; |
● | Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment; and |
● | Value stock risk arises from the possibility that a stock’s intrinsic value may not be fully realized by the market. |
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The Class I shares of the fund have adopted the performance history and financial statements of the Institutional Class shares of the fund’s predecessor. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
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Carillon Mutual Funds
Summary of carillon scout international fund | 3.1.2019
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 21.57% | September 30, 2009 |
Worst Quarter | (20.84)% | September 30, 2011 |
Average annual total returns (for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs)
|
Class I – Before Taxes | 9/14/1993 | (16.89)% | 0.02% | 6.32% | |
After Taxes on Distributions | (19.04)% | (3.52)% | 4.37% | ||
After Taxes on Distributions and Sale of Fund Shares | (8.47)% | 0.17% | 5.30% | ||
Class A – Before Taxes | 11/20/17 | (21.10)% | (17.95)% | ||
Class C – Before Taxes | 11/20/17 | (17.80)% | (14.94)% | ||
Class Y – Before Taxes | 11/20/17 | (17.22)% | (14.33)% | ||
Class R-3 – Before Taxes | 11/20/17 | (17.44)% | (14.56)% | ||
Class R-5 – Before Taxes | 11/20/17 | (16.99)% | (14.10)% | ||
Class R-6 – Before Taxes | 11/20/17 | (16.89)% | (14.00)% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From Inception Date of Class A, Class C, Class Y, Class R-3, Class R-5 and Class R-6 Shares)
|
MSCI EAFE Index | 13.79% | 0.53% | 6.32% | (9.92)% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
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Carillon Mutual Funds
Summary of carillon scout international fund | 3.1.2019
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser
| Scout Investments, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | Michael D. Stack, CFA®, has served as the Lead Portfolio Manager of the fund and Angel M. Lupercio has served as Portfolio Co-Manager of the fund since its inception in 2017. Messrs. Stack and Lupercio are jointly and primarily responsible for the day-to-day management of the fund. Mr. Stack was Assistant Portfolio Manager of the fund’s predecessor from February 2006 through December 2007; Portfolio Co-Manager of the fund’s predecessor from April 2012 through March 2014; Co-Lead Portfolio Manager of the fund’s predecessor from March 2014 through December 2014; and Lead Portfolio Manager of the fund’s predecessor from 2015 to 2017. Mr. Lupercio served as Portfolio Co-Manager of the fund’s predecessor from 2015 to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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Summary of carillon scout mid cap fund | 3.1.2019
Investment objective | The Carillon Scout Mid Cap Fund (“Mid Cap Fund” or the “fund”) seeks long-term growth of capital.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Mid Cap Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 4.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
|
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.19% | 0.19% | 0.23%(b) | 0.19% | 0.19% | 0.24% | 0.15% |
Total Annual Fund Operating Expenses | 1.19% | 1.94% | 0.98% | 1.19% | 1.44% | 0.99% | 0.90% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other Expenses have been restated to reflect the fee rates that became effective upon the reorganization of the fund on November 20, 2017.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $591 | $835 | $1,098 | $1,850 |
Class C | $297 | $609 | $1,047 | $2,264 |
Class I | $100 | $312 | $542 | $1,201 |
Class Y | $121 | $378 | $654 | $1,443 |
Class R-3 | $147 | $456 | $787 | $1,724 |
Class R-5 | $101 | $315 | $547 | $1,213 |
Class R-6 | $92 | $287 | $498 | $1,108 |
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Carillon Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP FUND | 3.1.2019
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 106% of the average value of its portfolio.
Principal investment strategies | The fund pursues its objective by investing primarily in common stocks of mid cap companies. Under normal circumstances, at least 80% of the fund’s net assets will be invested in mid cap equity securities. The fund’s portfolio managers consider mid-capitalization companies to be those companies that, at the time of initial purchase, have market capitalizations greater than $1 billion and equal to or less than the largest company in the Russell Midcap® Index during the most recent 12-month period (approximately $41.9 billion during the 12-month period ended December 31, 2018). The fund maintains a portfolio of investments diversified across companies and economic sectors.
The equity securities in which the fund invests include common stocks, depositary receipts, preferred stocks, convertible securities, warrants and other rights, and real estate investment trusts (“REITs”). The fund normally invests in a diversified portfolio of equity securities. The portfolio management team seeks to invest in the securities of companies that are expected to benefit from macroeconomic or company-specific factors, and that are attractively priced relative to their fundamentals. In making investment decisions, the portfolio management team may consider fundamental factors such as cash flow, financial strength, profitability, statistical valuation measures, potential or actual catalysts that could move the share price, accounting practices, management quality, risk factors such as litigation, the estimated fair value of the company, general economic and industry conditions, and additional information as appropriate.
The fund will invest primarily in securities of U.S. companies, but may invest up to 20% of the portfolio in foreign companies, including those located in developing countries or emerging markets; American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”). At times, the fund may hold securities of small capitalization companies.
The fund intends to hold some cash, short-term debt obligations, government securities or other high-quality investments for reserves to cover redemptions and unanticipated expenses. There may be times, however, when the fund attempts to respond to adverse market, economic, political or other conditions by investing a higher percentage of its assets in cash or in those types of money market investments for temporary defensive purposes. During those times, the fund may not be able to pursue its investment objective or follow its principal investment strategies and, instead, will focus on preserving your investment.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
● | Emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. When investing in emerging markets, the risks of investing in foreign securities are heightened; |
● | Equity securities are subject to stock market risk. |
Common stock. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders;
Convertible securities. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment value. Convertible securities also are sensitive to movements in interest rates;
Depositary receipts. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities;
REITs. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values;
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Carillon Mutual Funds
Summary of carillon scout mid cap fund | 3.1.2019
Rights and warrants. Rights and warrants do not carry dividend or voting rights with respect to the underlying securities or any rights in the assets of the issuer, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date;
● | Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. Foreign security risk may also apply to ADRs, GDRs and EDRs; |
● |
Growth
stock risk is the risk of a lack of earnings increase or lack of dividend
yield; |
● | Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies; |
● | Portfolio turnover risk is the risk that performance may be adversely affected by a high rate of portfolio turnover, which generally leads to greater transaction costs; |
● | Small-cap company risk arises because small-cap companies may have less liquid stock, a more volatile share price, a limited product or service base, narrower commercial markets and limited access to capital, compared to larger, more established companies; |
● | Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment; and |
● | Value stock risk arises from the possibility that a stock’s intrinsic value may not be fully realized by the market. |
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The Class I shares of the fund have adopted the performance history and financial statements of the Institutional Class shares of the fund’s predecessor. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
Carillon Mutual Funds
Summary of carillon scout mid cap fund | 3.1.2019
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 23.59% | June 30, 2009 |
Worst Quarter | (16.83)% | December 31, 2018 |
Average annual total returns (for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs)
|
Class I – Before Taxes | 10/31/2006 | (9.74)% | 6.93% | 14.85% | |
After Taxes on Distributions | (11.37)% | 4.61% | 13.12% | ||
After Taxes on Distributions and Sale of Fund Shares | (4.63)% | 5.05% | 12.18% | ||
Class A – Before Taxes | 11/20/17 | (14.26)% | (11.42)% | ||
Class C – Before Taxes | 11/20/17 | (10.62)% | (8.10)% | ||
Class Y – Before Taxes | 11/20/17 | (9.96)% | (7.44)% | ||
Class R-3 – Before Taxes | 11/20/17 | (10.25)% | (7.75)% | ||
Class R-5 – Before Taxes | 11/20/17 | (10.00)% | (7.47)% | ||
Class R-6 – Before Taxes | 11/20/17 | (9.71)% | (7.19)% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From Inception Date of Class A, Class C, Class Y, Class R-3, Class R-5 and Class R-6 Shares)
|
Russell Midcap® Index | (9.06)% | 6.26% | 14.03% | (5.53)% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
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Carillon Mutual Funds
Summary of carillon scout mid cap fund | 3.1.2019
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Scout Investments, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | G. Patrick Dunkerley,
CFA®, has served as the Lead Portfolio Manager of the fund and Derek M.
Smashey, CFA®, John A. Indellicate II, CFA® and Jason J. Votruba, CFA®, have
served as Portfolio Co-Managers of the fund since its inception in 2017. Messrs.
Dunkerley, Smashey, Indellicate and Votruba are jointly and primarily
responsible for the day-to-day management of the fund. Mr. Dunkerley served as
Lead Portfolio Manager of the fund’s predecessor and Mr. Smashey served as
Portfolio Co-Manager of the fund’s predecessor from its inception in 2006 to
2017. Messrs. Indellicate and Votruba served as Portfolio Co-Managers of the
fund’s predecessor from 2011 and 2013, respectively, to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers
and other financial intermediaries | If you purchase shares of the fund
through a broker-dealer or other financial intermediary (such as a bank), the
fund and its related companies may pay the intermediary for the sale of fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
Investment objective | The Carillon Scout Small Cap Fund (“Small Cap Fund” or the “fund”) seeks long-term growth of capital.
Fees and
expenses of the fund | The tables that follow describe the fees and expenses
that you may pay if you buy and hold shares of the Small Cap Fund. You may
qualify for sales discounts if you and your family invest, or agree to invest in
the future, at least $25,000 in the Class A shares of the Carillon Family of
Funds. More information about these and other discounts is available from your
financial professional, on page 82 of the fund’s Prospectus and on page 44 of
the fund’s Statement of Additional Information. Although the fund does not
impose any sales charge on Class I shares, you may pay a commission to your
broker on your purchases and sales of those shares, which is not reflected in
the tables or Example below.
Shareholder
fees
(fees
paid directly from your investment): |
Class
A |
Class
C |
Class
I |
Class
Y |
Class
R-3 |
Class
R-5 |
Class
R-6 |
Maximum
Sales Charge Imposed on Purchases (as a % of offering price) |
4.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (as a % of original purchase price or redemption
proceeds, whichever is lower) |
None
(a) |
1.00%
(a) |
None |
None |
None |
None |
None |
Redemption
Fee |
None |
None |
None |
None |
None |
None |
None |
Annual
fund operating expenses
(expenses
that you pay each year as a percentage of the value of your
investment):
|
Class A | Class C | Class I | Class Y | Class R-3 | Class R-5 | Class R-6 |
Management Fees (a) |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
Distribution and Service (12b-1) Fees |
0.25% |
1.00% |
0.00% |
0.25% |
0.50% |
0.00% |
0.00% |
Other Expenses |
0.38% |
0.37% |
0.32%(b) |
0.74% |
0.57% |
0.72% |
0.26% |
Total Annual Fund Operating Expenses |
1.23% |
1.97% |
0.92% |
1.59% |
1.67% |
1.32% |
0.86% |
Fee Waiver and/or Expense Reimbursement or Recoupment (c) |
0.00% |
0.00% |
0.00% |
(0.34)% |
(0.17)% |
(0.37)% |
(0.01)% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement or Recoupment |
1.23% |
1.97% |
0.92% |
1.25% |
1.50% |
0.95% |
0.85% |
(a) |
Management
Fees have been restated to reflect current
fees. |
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 1.25%, Class C – 2.00%, Class I – 0.95%, Class Y – 1.25%, Class R-3 - 1.50%, Class R-5 – 0.95%, and Class R-6 – 0.85%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement or the time of the recoupment.
Expense
example | This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through February
29, 2020. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
Share
Class |
Year
1 |
Year
3 |
Year
5 |
Year
10 |
Class
A |
$594
|
$847
|
$1,119
|
$1,893
|
Class
C |
$300
|
$618
|
$1,062
|
$2,296
|
Class
I |
$97
|
$303
|
$525
|
$1,166
|
Class Y |
$127 |
$467 |
$829 |
$1,850 |
Class R-3 |
$153 |
$508 |
$887 |
$1,952 |
Class R-5 |
$97 |
$378 |
$679 |
$1,537 |
Class R-6 |
$87 |
$273 |
$476 |
$1,060 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 22% of the average value of its portfolio.
Principal investment strategies | The fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in equity securities (mostly common stocks) of small cap companies located anywhere in the United States. The fund’s portfolio managers consider small-capitalization companies to be those companies that, at the time of initial purchase, have a market capitalization equal to or less than the largest company in the Russell 2000® Growth Index during the most recent 12-month period (approximately $16.7 billion during the 12-month period ended December 31, 2018).
The equity securities in which the fund invests include common stocks, depositary receipts, preferred stocks, convertible securities, warrants and other rights, and real estate investment trusts (“REITs”). Although the portfolio management team will search for investments across a large number of sectors, from time to time, based on economic conditions, the fund may have significant positions in particular sectors.
The fund normally invests in a diversified portfolio of equity securities that are selected based upon the portfolio management team’s perception of their above-average potential for long-term growth of capital. The portfolio management team searches for companies that it believes are well positioned to benefit from the emergence of long-term catalysts for growth. The identified growth catalysts are long-term and secular (i.e., exhibiting relatively consistent expansion over a long period). Following the identification of well-positioned companies, the portfolio management team estimates the fair value of each candidate by assessing: margin structure, growth rate, debt level and other measures which it believes influence relative stock valuations. The overall company analysis includes the assessment of the liquidity of each security, sustainability of profit margins, barriers to entry, company management and free cash flow.
The fund will invest primarily in securities of U.S. companies, but may invest up to 10% of the portfolio in foreign companies, including those located in developing countries or emerging markets; American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”). Although the portfolio managers generally do not emphasize investment in any particular investment sector or industry, the fund may invest a significant portion of its assets in the securities of companies in the health care sector at any given time.
The fund intends to hold some cash, short-term debt obligations, government securities or other high-quality investments for reserves to cover redemptions and unanticipated expenses. There may be times, however, when the fund attempts to respond to adverse market, economic, political or other conditions by investing a higher percentage of its assets in cash or in those types of money market investments for temporary defensive purposes. During those times, the fund may not be able to pursue its investment objective or follow its principal investment strategies and, instead, will focus on preserving your investment.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The fund invests primarily in common stocks whose values increase and decrease in response to the activities of the companies that issued such stocks, general market conditions and/or economic conditions. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
• |
Emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. When investing in emerging markets, the risks of investing in foreign securities are heightened; |
• |
Equity securities are subject to stock market risk. |
Common stock. The value of a company's common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock. Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and,
carillontower.com | 39
unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders;
Convertible securities. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities’ investment value. Convertible securities also are sensitive to movements in interest rates;
Depositary receipts. Investing in depositary receipts entails substantially the same risks as direct investment in foreign securities;
REITs. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values;
Rights
and warrants. Rights and warrants do not carry dividend or voting rights
with respect to the underlying securities or any rights in the assets of the
issuer, and a right or a warrant ceases to have value if it is not exercised
prior to its expiration date;
• |
Focused holdings risk is the risk of a fund holding a core portfolio of securities of fewer companies than other diversified funds, which means that the increase or decrease of the value of a single investment may have a greater impact on the fund’s NAV and total return when compared to other diversified funds; |
• |
Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. Foreign security risk may also apply to ADRs, GDRs and EDRs; |
• |
Growth stock risk is the risk of a lack of earnings increase or lack of dividend yield; |
• |
Market timing risk arises because certain types of securities in which the fund invests, including foreign securities, could cause the fund to be at greater risk of market timing activities by fund shareholders; |
• |
Mid-cap company risk arises because mid-cap companies may have narrower commercial markets, limited managerial and financial resources, more volatile performance, and less liquid stock, compared to larger, more established companies; |
• |
Sector risk is the risk associated with the fund holding a core portfolio of stocks invested in similar businesses, all of which could be affected by the same economic or market conditions; |
The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays in or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector;
• |
Small-cap company risk arises because small-cap companies may have less liquid stock, a more volatile share price, a limited product or service base, narrower commercial markets and limited access to capital, compared to larger, more established companies; |
• |
Stock market risk is the risk of broad stock market decline or volatility or a decline in particular holdings in response to adverse issuer, political, regulatory, market, economic or other developments, public perceptions concerning these developments, and adverse investor sentiment; and |
• |
Value stock risk arises from the possibility that a stock’s intrinsic value may not be fully realized by the market. |
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The Class I shares of the fund have adopted the performance history and financial statements of the Institutional Class shares of the fund’s predecessor. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During 10 year period | Return | Quarter Ended |
(Class I shares): | ||
Best Quarter | 17.53% | December 31, 2010 |
Worst Quarter | (23.46)% | September 30, 2011 |
Average
annual total returns
(for the periods ended December 31, 2018):
Fund
return (after deduction of sales charges and expenses)
Share
Class
|
Inception
Date |
1-yr | 5-yr | 10-yr |
Lifetime (if
less than 10 yrs) |
Class I – Before Taxes | 7/2/01 | (5.13)% | 8.35% | 13.01% | |
After Taxes on Distributions | (6.77)% | 6.51% | 12.04% | ||
After Taxes on Distributions and Sale of Fund Shares | (1.51)% | 6.44% | 10.86% | ||
Class A – Before Taxes | 11/20/17 | (9.88)% | (6.16)% | ||
Class C – Before Taxes | 11/20/17 | (6.10)% | (2.68)% | ||
Class Y – Before Taxes | 11/20/17 | (5.43)% | (1.99)% | ||
Class R-3 – Before Taxes | 11/20/17 | (5.65)% | (2.23)% | ||
Class R-5 – Before Taxes | 11/20/17 | (5.13)% | (1.69)% | ||
Class R-6 – Before Taxes | 11/20/17 | (5.02)% | (1.58)% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime
(From Inception Date of Class A, Class C, Class Y, Class R-3, Class R-5 and Class R-6 Shares) | ||||
Russell 2000 Growth Index | (9.31)% | 5.13% | 13.52% | (6.22)% |
carillontower.com | 41
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Scout Investments, Inc. serves as the sub-adviser to the fund.
Portfolio Managers | James R. McBride, CFA®, has served as the Lead Portfolio Manager of the fund and Timothy L. Miller, CFA® has served as Portfolio Co-Manager of the fund since its inception in 2017. Messrs. McBride and Miller are jointly and primarily responsible for the day-to-day management of the fund. Mr. McBride was Portfolio Co-Manager of the fund’s predecessor from 2010 through 2015 and served as Lead Portfolio Manager of the fund’s predecessor from 2015 to 2017. Mr. Miller served as Portfolio Co-Manager of the fund’s predecessor from 2013 to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Carillon Mutual Funds
Summary of Carillon Reams Core Bond Fund | 3.1.2019
Investment objective | The Carillon Reams Core Bond Fund (“Core Bond Fund” or the “fund”) seeks a high level of total return consistent with the preservation of capital.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Core Bond Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class |
Class |
Class |
Class
|
Class
|
Class
|
Maximum Sales Charge Imposed on Purchases (as a % of offering price) |
3.75% |
None |
None |
None |
None |
None |
None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) |
None (a) |
1.00% (a) |
None |
None |
None |
None |
None |
Redemption Fee |
None |
None |
None |
None |
None |
None |
None |
Annual
fund operating expenses
(expenses
that you pay each year as a percentage of the value of your investment):
|
Class
A
|
Class
C
|
Class
I
|
Class
Y
|
Class
R-3
|
Class
R-5
|
Class
R-6
|
Management
Fees |
0.40%
|
0.40%
|
0.40%
|
0.40%
|
0.40%
|
0.40%
|
0.40%
|
Distribution
and Service (12b-1) Fees |
0.25%
|
1.00%
|
0.00%
|
0.25%
|
0.50%
|
0.00%
|
0.00%
|
Other
Expenses |
0.51%
|
0.59%
|
0.47%
|
0.54%
|
1.12%
|
1.12%
|
1.12%
|
Total
Annual Fund Operating Expenses |
1.16%
|
1.99%
|
0.87%
|
1.19%
|
2.02%
|
1.52%
|
1.52%
|
Fee
Waiver and/or Expense Reimbursement (b) |
(0.36)%
|
(0.44)%
|
(0.47)%
|
(0.39)%
|
(0.97)%
|
(1.02)%
|
(1.12)%
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
0.80%
|
1.55%
|
0.40%
|
0.80%
|
1.05%
|
0.50%
|
0.40%
|
(a) If you purchased
$1,000,000 or more of Class A shares of a Carillon mutual fund that were not
otherwise eligible for a sales charge waiver and sell the shares within 18
months from the date of purchase, you may pay up to a 1% contingent deferred
sales charge at the time of sale. If you sell Class C shares less than one year
after purchase, you will pay a 1% CDSC at the time of sale.
(b) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 0.80%, Class C – 1.55%, Class I – 0.40%, Class Y – 0.80%, Class R-3 - 1.05%, Class R-5 – 0.50%, and Class R-6 – 0.40%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
carillontower.com | 43
Carillon Mutual Funds
Summary of Carillon Reams Core Bond Fund | 3.1.2019
Share Class | Year 1 | Year 3 | Year 5 |
Year
10 |
Class A | $454 | $695 | $956 | $1,700 |
Class C | $258 | $582 | $1,032 | $2,281 |
Class I | $41 | $231 | $436 | $1,029 |
Class Y | $82 | $339 | $617 | $1,409 |
Class R-3 | $107 | $540 | $998 | $2,270 |
Class R-5 | $51 | $380 | $732 | $1,725 |
Class R-6 | $41 | $370 | $723 | $1,717 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 278% of the average value of its portfolio.
Principal investment strategies | Under normal circumstances, the fund invests at least 80% of its net assets in bonds of varying maturities, including mortgage- and asset-backed securities. The bonds in which the fund may invest also include other fixed income instruments such as debt securities, to-be-announced securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.
The fund invests primarily in investment grade securities. Investment grade securities include securities rated in one of the four highest rating categories by a nationally recognized statistical rating organization, such as BBB- or higher by Standard & Poor’s Financial Services LLC (“S&P®”). In addition, the fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis. All securities will be U.S. dollar denominated although they may be securities of foreign issuers. Mortgage-backed securities are pools of mortgage loans that are assembled as securities for sale to investors by various governmental, government-related and private organizations. Asset-backed securities are securities that are secured or “backed” by pools of various types of assets, such as automobile loans, consumer loans, credit cards and equipment leases, on which cash payments are due at fixed intervals over set periods of time.
The fund may invest in derivative instruments, such as futures contracts (including interest rate, bond, U.S. Treasury and fixed income index futures contracts) and credit default swap agreements subject to applicable law and any other restrictions described in the fund’s Prospectus or Statement of Additional Information (“SAI”). The fund’s investment in credit default swap agreements may include both single-name credit default swap agreements and credit default swap index products, such as CDX index products. The use of these derivative transactions may allow the fund to obtain net long or short exposures to select interest rates, countries, durations or credit risks. These derivatives may be used to enhance Fund returns, increase liquidity, manage the duration of the fund’s portfolio and/or gain exposure to certain instruments or markets (i.e., the corporate bond market) in a more efficient or less expensive way. The credit default swap agreements that the fund invests in may provide exposure to an index of securities representative of the entire investment grade market. Derivative instruments that provide exposure to bonds may be used to satisfy the fund’s 80% investment policy.
The portfolio management team attempts to maximize total return over a long-term horizon through opportunistic investing in a broad array of eligible securities. The investment process combines top-down interest rate management with bottom-up fixed income security selection, focusing on undervalued issues in the fixed income market. The portfolio management team first establishes the portfolio’s duration, or interest rate sensitivity. The portfolio management team determines whether the fixed income market is under- or over-priced by comparing current real interest rates (the nominal rates on U.S. Treasury securities less the investment adviser’s estimate of inflation) to historical real interest rates. If the current real interest rate is higher than historical norms, the market is considered undervalued and the portfolio management team will manage the portfolio with a duration greater than the benchmark. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. If the current real interest rate is less than historical norms, the market is considered overvalued and the portfolio management team will run a defensive portfolio by managing the portfolio with a duration less than the benchmark. The portfolio management team normally structures the fund so that the overall portfolio has a duration of between two and seven years based on market conditions. For purposes of calculating the fund’s portfolio duration, the fund includes the effect of the derivative instruments held by the fund.
The investment adviser then considers sector exposures. Sector exposure decisions are made on both a top-down and bottom-up basis. A bottom-
Carillon Mutual Funds
Summary of Carillon Reams Core Bond Fund | 3.1.2019
up issue selection process is the major determinant of sector exposure, as the availability of attractive securities in each sector determines their underweighting or overweighting in the Fund subject to sector exposure constraints. However, for the more generic holdings in the Fund, such as agency notes and pass-through mortgage backed securities, top-down considerations will drive the sector allocation process on the basis of overall measurements of sector value such as yield spreads or price levels.
Once the investment adviser has determined an overall market strategy, the investment adviser selects the most attractive fixed income securities for the Fund. The portfolio managers screen hundreds of securities to determine how each will perform in various interest rate environments. The portfolio managers construct these scenarios by considering the outlook for interest rates, fundamental credit analysis and option-adjusted spread analysis. The portfolio managers compare these investment opportunities and assemble the Fund’s portfolio from the best available values. The investment adviser constantly monitors the expected returns of the securities in the Fund versus those available in the market and of other securities the investment adviser is considering for purchase. The investment adviser’s strategy is to replace securities that it feels are approaching fair market value with those that, according to its analysis, are significantly undervalued. As a result of this strategy, the fund’s portfolio turnover rate will vary from year to year depending on market conditions and the fund may engage in frequent and active trading.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The values of most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund’s portfolio generally will decline when interest rates rise and increase when interest rates fall. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
• | Credit risk arises if an issuer of a fixed income security is unable to meet its financial obligations or goes bankrupt; |
• | Credit ratings risk is the risk associated with the fact that ratings by nationally recognized rating agencies generally represent the agencies’ opinion of the credit quality of an issuer and may prove to be inaccurate; |
• |
Derivatives, such as swap agreements (including credit default swaps and credit default swap index products), options, futures contracts or currency forwards, may involve greater risks than if the fund invested in the reference obligation directly. These instruments are subject to general market risks, liquidity risks, interest rate risks, and credit risks. Derivatives also present the risk that the other party to the transaction will fail to perform. Derivatives also involve an increased risk of mispricing or improper valuation of the derivative instrument, and imperfect correlation between the value of the derivative and the underlying instrument so that the fund may not realize the intended benefits. When used for hedging, changes in the value of the derivative may also not correlate perfectly with the underlying asset, rate or index. Derivatives can cause the fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund’s initial investment. The derivatives market may be subject to additional regulations in the future; |
• |
Fixed income market risk is the risk that market conditions or other events that impact fixed income issuers, including adverse issuer, political, regulatory, market, economic or other developments that may cause broad changes in market value, public perceptions concerning these developments, and adverse investor sentiment, will have an adverse effect on the fund. Events in the fixed income markets may lead to periods of volatility, unusual liquidity issues and, in some cases, credit downgrades and increased likelihood of default. Such events may cause the value of securities owned by the fund to go up or down, sometimes rapidly or unpredictably, and may lead to increased redemptions, which could cause the fund to experience a loss when selling securities to meet redemption requests by shareholders; |
• |
Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. The risks associated with investments in governmental or quasi-governmental entities of a foreign country are heightened by the potential for unexpected governmental change and inadequate government oversight. Foreign security risk may also apply to ADRs, GDRs and EDRs; |
• |
Income risk is the risk that the fund’s income could decline due to falling market interest rates. In a falling interest rate environment, the fund may be required to invest its assets in lower-yielding securities; |
• |
Interest rate risk is the risk that the value of a fund’s investments in fixed income securities will fall when interest rates rise. The Federal Reserve raised the federal funds rate several times since December 2015 and may continue to increase rates in the future. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the fund. The effect of increasing interest rates is more pronounced for any intermediate- or longer-term fixed income obligations owned by the fund. For example, if a bond has a duration of seven years, a 1% increase in interest rates could be expected to result in a 7% decrease in the value of the bond; |
• |
Issuer risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services; |
• |
Leverage risk is the risk that the use of financial instruments to increase potential returns, including the use of when-issued, delayed delivery or forward |
carillontower.com | 45
Carillon Mutual Funds
Summary of Carillon Reams Core Bond Fund | 3.1.2019
commitment transactions, and derivatives used for investment (non-hedging) purposes, may cause the fund to be more volatile than if it had not been leveraged. The use of leverage may also accelerate the velocity of losses and can result in losses to the fund that exceed the amount originally invested;
• |
Liquidity risk is the possibility that, during times of widespread market turbulence, trading activity in certain securities may be significantly hampered, which may reduce the returns of the fund because it may be unable to sell the securities at an advantageous price or time. Market prices for such securities may be volatile; |
• |
Maturity risk is the risk associated with the fact that the fund will invest in fixed income securities of varying maturities. A fixed income security’s maturity is one indication of the interest rate exposure of a security. Generally, the longer a fixed income security’s maturity, the greater the risk. Conversely, the shorter a fixed income security’s maturity, the lower the risk; |
• |
Mortgage- and asset-backed security risk, which is possible in an unstable or depressed housing market, arises from the potential for mortgage failure, premature repayment of principal, or a delay in the repayment of principal. In a to-be-announced (“TBA”) mortgage-backed transaction, the fund and the seller agree upon the issuer, interest rate and terms of the underlying mortgages. However, the seller does not identify the specific underlying mortgages until it issues the security. TBA mortgage-backed securities increase interest rate risks because the underlying mortgages may be less favorable than anticipated by the fund; |
• |
Portfolio turnover risk is the risk that performance may be adversely affected by a high rate of portfolio turnover, which generally leads to greater transaction costs; |
• |
Redemption risk is the risk that, due to a rise in interest rates or other changing government policies that may cause investors to move out of fixed income securities on a large scale, the fund may experience periods of heavy redemptions that could cause the fund to sell assets at inopportune times or at a loss or depressed value; and |
• |
Valuation risk arises because the securities held by the fund are generally priced by an independent pricing service and may also be priced using dealer quotes or fair valuation methodologies in accordance with valuation procedures adopted by the fund’s Board. The prices provided by the independent pricing service or dealers or the fair valuations may be different from the prices used by other mutual funds or from the prices at which securities are actually bought and sold. |
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The Class I and Class Y shares of the fund have adopted the performance history and financial statements of the Institutional Class and Class Y shares, respectively, of the fund’s predecessor. Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
Carillon Mutual Funds
Summary of Carillon Reams Core Bond Fund | 3.1.2019
During
10 year period |
Return
|
Quarter
Ended |
(Class
I shares): |
||
Best
Quarter |
20.71%
|
June
30, 2009 |
Worst
Quarter |
(2.95)%
|
December
31, 2016 |
Average
annual total returns
(for the
periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share
Class |
Inception
Date
|
1-yr
|
5-yr
|
10-yr
|
Lifetime
(if
less than
10
yrs) |
Class
I – Before Taxes |
2/23/2001
|
1.24%
|
2.05%
|
5.65%
|
|
After
Taxes on Distributions |
0.30%
|
1.12%
|
4.43%
|
||
After
Taxes on Distributions and Sale of Fund Shares |
0.72%
|
1.15%
|
3.97%
|
||
Class
A – Before Taxes |
11/20/17
|
(2.84)%
|
(2.34)%
| ||
Class
C – Before Taxes |
11/20/17
|
0.16%
|
0.29%
| ||
Class
Y – Before Taxes |
4/21/11
|
0.92%
|
1.66%
|
2.47%
| |
Class
R-3 – Before Taxes |
11/20/17
|
0.67%
|
0.81%
| ||
Class
R-5 – Before Taxes |
11/20/17
|
1.23%
|
1.36%
| ||
Class
R-6 – Before Taxes |
11/20/17
|
1.33%
|
1.47%
|
carillontower.com |
47
Summary of Carillon Reams Core Bond Fund | 3.1.2019
Index
(reflects no deduction for fees, expenses or taxes) |
1-yr
|
5-yr
|
10-yr
|
Lifetime
(From
Inception Date of Class A, Class C, Class R-3, Class R-5 and Class R-6
Shares) |
Lifetime
(Since
Inception Date of Class Y Shares) |
Bloomberg
Barclays U.S. Aggregate Bond Index |
0.01%
|
2.52%
|
3.48%
|
0.36%
|
2.77%
|
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Scout Investments, Inc., through its Reams Asset Management division, serves as the sub-adviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead Portfolio Manager of the fund and Thomas M. Fink, CFA®, Todd C. Thompson, CFA®, Stephen T. Vincent, CFA® and Clark W. Holland, CFA®, have served as Portfolio Co-Managers of the fund since the fund’s inception in 2017. Jason J. Hoyer, CFA®, has served as Portfolio Co-Manager of the fund since April 2018. Messrs. Egan, Fink, Thompson, Vincent, Holland and Hoyer are jointly and primarily responsible for the day-to-day management of the fund. Mr. Egan served as the Lead Portfolio Manager of the fund’s predecessor and Messrs. Fink and Thompson served as Portfolio Co-Managers of the fund’s predecessor from its inception in 2001 to 2017. Messrs. Vincent and Holland served as Portfolio Co-Managers of the fund’s predecessor from 2009 and 2014, respectively, to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Investment objective | The Carillon Reams Core Plus Bond Fund (“Core Plus Bond Fund” or the “fund”) seeks a high level of total return consistent with the preservation of capital.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Core Plus Bond Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 3.75% | None | None | None | None | None | None |
Maximum Deferred Sales
Charge (as a % of original purchase price or redemption proceeds,
whichever is lower) |
None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.32% | 0.45% | 0.20% | 0.30% (b) | 0.87% | 0.87% | 0.87% |
Total Annual Fund Operating Expenses | 0.97% | 1.85% | 0.60% | 0.95% | 1.77% | 1.27% | 1.27% |
Fee Waiver and/or Expense Reimbursement (c) | (0.17)% | (0.30)% | (0.20)% | (0.15)% | (0.72)% | (0.77)% | (0.87)% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 0.80% | 1.55% | 0.40% | 0.80% | 1.05% | 0.50% | 0.40% |
(a) If you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund that were not otherwise eligible for a sales charge waiver and sell the shares within 18 months from the date of purchase, you may pay up to a 1% contingent deferred sales charge at the time of sale. If you sell Class C shares less than one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Other Expenses have been restated to reflect the fee rates that became effective upon the reorganization of the fund on November 20, 2017.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 0.80%, Class C – 1.55%, Class I – 0.40%, Class Y – 0.80%, Class R-3 - 1.05%, Class R-5 – 0.50%, and Class R-6 – 0.40%. This expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $454 | $656 | $875 | $1,505 |
Class C | $258 | $553 | $973 | $2,145 |
Class I | $41 | $172 | $315 | $731 |
Class Y | $82 | $288 | $511 | $1,153 |
Class R-3 | $107 | $487 | $892 | $2,024 |
Class R-5 | $51 | $327 | $623 | $1,466 |
Class R-6 | $41 | $317 | $613 | $1,457 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance. During the most recent fiscal year, the fund’s portfolio turnover rate was 292% of the average value of its portfolio.
Principal investment strategies | Under normal circumstances, the fund invests at least 80% of its net assets in bonds of varying maturities, including mortgage- and asset-backed securities. The bonds in which the Fund may invest also include other fixed income instruments such as debt securities, to-be-announced securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The fund invests primarily in investment grade securities, but may also invest up to 25% of its assets in non-investment grade securities, also known as high yield securities or “junk” bonds. Investment grade securities include securities rated in one of the four highest rating categories by a nationally recognized statistical rating organization, such as BBB- or higher by Standard & Poor’s Financial Services LLC (“S&P®”). In addition, the fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis. Securities will generally be U.S. dollar denominated although they may be securities of foreign issuers. The fund may also invest in securities denominated in foreign currencies. Mortgage-backed securities are pools of mortgage loans that are assembled as securities for sale to investors by various governmental, government-related and private organizations. Asset-backed securities are securities that are secured or “backed” by pools of various types of assets, such as automobile loans, consumer loans, credit cards and equipment leases, on which cash payments are due at fixed intervals over set periods of time.
The Fund may invest in derivative instruments, such as options, futures contracts (including interest rate, bond, U.S. Treasury and fixed income index futures contracts), currency forwards and swap agreements (including credit default swaps) subject to applicable law and any other restrictions described in the fund’s Prospectus or Statement of Additional Information (“SAI”). The fund’s investment in credit default swap agreements may include both single-name credit default swap agreements and credit default swap index products, such as CDX index products. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks. These derivatives may be used to enhance fund returns, increase liquidity, manage the duration of the fund’s portfolio and/or gain exposure to certain instruments or markets (i.e., the corporate bond market) in a more efficient or less expensive way. The credit default swap agreements that the fund invests in may provide exposure to an index of securities representative of the entire investment grade and high yield fixed income markets, which can include underlying issuers rated as low as CCC by S&P®. Derivative instruments that provide exposure to bonds may be used to satisfy the fund’s 80% investment policy.
The portfolio management team attempts to maximize total return over a long-term horizon through opportunistic investing in a broad array of eligible securities. The investment process combines top-down interest rate management with bottom-up fixed income security selection, focusing on undervalued issues in the fixed income market. The portfolio management team first establishes the portfolio’s duration, or interest rate sensitivity. The portfolio management team determines whether the fixed income market is under- or over-priced by comparing current real interest rates (the nominal rates on U.S. Treasury securities less the investment adviser’s estimate of inflation) to historical real interest rates. If the current real interest rate is higher than historical norms, the market is considered undervalued and the portfolio management team will manage the portfolio with a duration greater than the benchmark. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. If the current real interest rate is less than historical norms, the market is considered overvalued and the portfolio management team will run a defensive portfolio by managing the portfolio with a duration less than the benchmark. The portfolio management team normally structures the fund so that the overall portfolio has a duration of between two and seven years based on market conditions. For purposes of calculating the fund’s portfolio duration, the fund includes the effect of the derivative instruments held by the fund.
The portfolio management team then considers sector exposures. Sector exposure decisions are made on both a top-down and bottom-up basis. A bottom-up issue selection process is the major determinant of sector exposure, as the availability of attractive securities in each sector determines their underweighting or overweighting in the fund subject to sector exposure constraints. However, for the more generic holdings in the fund, such as agency notes and pass-through mortgage backed securities, top-down considerations will drive the sector allocation process on the basis of overall measurements of sector value such as yield spreads or price levels. Once the portfolio management team has determined an overall market strategy, the portfolio
management team selects the most attractive fixed income securities for the fund. The portfolio managers screen hundreds of securities to determine how each will perform in various interest rate environments. The portfolio managers construct these scenarios by considering the outlook for interest rates, fundamental credit analysis and option-adjusted spread analysis. The portfolio managers compare these investment opportunities and assemble the fund’s portfolio from the best available values. The portfolio management team constantly monitors the expected returns of the securities in the fund versus those available in the market and of other securities the investment adviser is considering for purchase. The portfolio management team’s strategy is to replace securities that it feels are approaching fair market value with those that, according to its analysis, are significantly undervalued. As a result of this strategy, the fund’s portfolio turnover rate will vary from year to year depending on market conditions and the Fund may engage in frequent and active trading.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The values of most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund’s portfolio generally will decline when interest rates rise and increase when interest rates fall. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
• Credit risk arises if an issuer of a fixed income security is unable to meet its financial obligations or goes bankrupt;
• Credit ratings risk is the risk associated with the fact that ratings by nationally recognized rating agencies generally represent the agencies’ opinion of the credit quality of an issuer and may prove to be inaccurate;
• Derivatives, such as swap agreements (including credit default swaps and credit default swap index products), options, futures contracts or currency forwards, may involve greater risks than if the fund invested in the reference obligation directly. These instruments are subject to general market risks, liquidity risks, interest rate risks, and credit risks. Derivatives also present the risk that the other party to the transaction will fail to perform. Derivatives also involve an increased risk of mispricing or improper valuation of the derivative instrument, and imperfect correlation between the value of the derivative and the underlying instrument so that the fund may not realize the intended benefits. When used for hedging, changes in the value of the derivative may also not correlate perfectly with the underlying asset, rate or index. Derivatives can cause the fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund’s initial investment. The derivatives market may be subject to additional regulations in the future;
• Fixed income market risk is the risk that market conditions or other events that impact fixed income issuers, including adverse issuer, political, regulatory, market, economic or other developments that may cause broad changes in market value, public perceptions concerning these developments, and adverse investor sentiment, will have an adverse effect on the fund. Events in the fixed income markets may lead to periods of volatility, unusual liquidity issues and, in some cases, credit downgrades and increased likelihood of default. Such events may cause the value of securities owned by the fund to go up or down, sometimes rapidly or unpredictably, and may lead to increased redemptions, which could cause the fund to experience a loss when selling securities to meet redemption requests by shareholders;
• Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. The risks associated with investments in governmental or quasi-governmental entities of a foreign country are heightened by the potential for unexpected governmental change and inadequate government oversight. Foreign security risk may also apply to ADRs, GDRs and EDRs;
• High-yield security risk results from investments in below investment grade bonds, which have a greater risk of loss, are susceptible to rising interest rates and have greater volatility. Investments in high-yield securities (commonly referred to as “junk bonds”) are inherently speculative;
• Income risk is the risk that the fund’s income could decline due to falling market interest rates. In a falling interest rate environment, the fund may be required to invest its assets in lower-yielding securities;
• Interest rate risk is the risk that the value of a fund’s investments in fixed income securities will fall when interest rates rise. The Federal Reserve raised the federal funds rate several times since December 2015 and may continue to increase rates in the future. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the fund. The effect of increasing interest rates is more pronounced for any intermediate- or longer-term fixed income obligations owned by the fund For example, if a bond has a duration of seven years, a 1% increase in interest rates could be expected to result in a 7% decrease in the value of the bond;
• Issuer risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services;
• Leverage risk is the risk that the use of financial instruments to increase potential returns, including the use of when-issued, delayed delivery or forward commitment transactions, and derivatives used for investment (non-hedging) purposes, may cause the fund to be more volatile than if it had not been leveraged. The use of leverage may also accelerate the velocity of losses and can result in losses to the fund that exceed the amount originally invested;
• Liquidity risk is the possibility that, during times of widespread market turbulence, trading activity in certain securities may be significantly hampered, which may reduce the returns of the fund because it may be unable to sell the securities at an advantageous price or time. Market prices for such securities may be volatile;
• Maturity risk is the risk associated with the fact that the fund will invest in fixed income securities of varying maturities. A fixed income security’s maturity is one indication of the interest rate exposure of a security. Generally, the longer a fixed income security’s maturity, the greater the risk. Conversely, the shorter a fixed income security’s maturity, the lower the risk;
• Mortgage- and asset-backed security risk, which is possible in an unstable or depressed housing market, arises from the potential for mortgage failure, premature repayment of principal, or a delay in the repayment of principal. In a to-be-announced (“TBA”) mortgage-backed transaction, the fund and the seller agree upon the issuer, interest rate and terms of the underlying mortgages. However, the seller does not identify the specific underlying mortgages until it issues the security. TBA mortgage-backed securities increase interest rate risks because the underlying mortgages may be less favorable than anticipated by the fund;
• Portfolio turnover risk is the risk that performance may be adversely affected by a high rate of portfolio turnover, which generally leads to greater transaction costs;
• Redemption risk is the risk that, due to a rise in interest rates or other changing government policies that may cause investors to move out of fixed income securities on a large scale, the fund may experience periods of heavy redemptions that could cause the fund to sell assets at inopportune times or at a loss or depressed value; and
• Valuation risk arises because the securities held by the fund are generally priced by an independent pricing service and may also be priced using dealer quotes or fair valuation methodologies in accordance with valuation procedures adopted by the fund’s Board. The prices provided by the independent pricing service or dealers or the fair valuations may be different from the prices used by other mutual funds or from the prices at which securities are actually bought and sold.
Performance
| The bar chart that follows illustrates annual fund returns for the periods
ended December 31. The table that follows compares the fund’s returns for
various periods with benchmark returns. This information is intended to give you
some indication of the risk of investing in the fund by demonstrating how its
returns have varied over time. The bar chart shows the fund’s Class I share
performance from one year to another. The Class I and Class Y shares of the fund
have adopted the performance history and financial statements of the
Institutional Class and Class Y shares, respectively, of the fund’s predecessor.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past
performance (before and after taxes) is not necessarily an indication of how the
fund will perform in the future. To obtain more current performance data as of
the most recent month-end, please visit our website at carillontower.com.
During 10 year period (Class I shares): | Return | Quarter Ended |
Best Quarter | 25.80% | June 30, 2009 |
Worst Quarter | (3.20)% | March 31, 2009 |
Average annual total returns
(for the
periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr | 10-yr |
Lifetime (if less than 10 yrs) |
Class I – Before Taxes | 11/25/1996 | 0.76% | 2.04% | 6.91% | |
After Taxes on Distributions | (0.17)% | 1.00% | 5.03% | ||
After Taxes on Distributions and Sale of Fund Shares | 0.44% | 1.10% | 4.73% | ||
Class A – Before Taxes | 11/20/17 | (3.42)% | (2.81)% | ||
Class C – Before Taxes | 11/20/17 | (0.42)% | (0.18)% | ||
Class Y – Before Taxes | 11/12/09 | 0.35% | 1.65% |
3.75% | |
Class R-3 – Before Taxes | 11/20/17 | 0.11% | 0.35% | ||
Class R-5 – Before Taxes | 11/20/17 | 0.66% | 0.90% | ||
Class R-6 – Before Taxes | 11/20/17 | 0.76% | 1.00% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr | 10-yr |
Lifetime (From Inception Date of Class A, Class C, Class R-3, Class R-5 and Class R-6 Shares) |
Lifetime (From Inception Date of Class Y Shares) |
Bloomberg
Barclays U.S. Aggregate Bond Index |
0.01% | 2.52% | 3.48% | 0.36% |
3.11% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Scout Investments, Inc., through its Reams Asset Management division, serves as the sub-adviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead Portfolio Manager of the fund and Thomas M. Fink, CFA®, Todd C. Thompson, CFA®, Stephen T. Vincent, CFA® and Clark W. Holland, CFA®, have served as Portfolio Co-Managers of the fund since the fund’s inception in 2017. Jason J. Hoyer, CFA®, has served as Portfolio Co-Manager of the fund since April 2018. Messrs. Egan, Fink, Thompson, Vincent, Holland and Hoyer are jointly and primarily responsible for the day-to-day management of the fund. Mr. Egan served as the Lead Portfolio Manager of the fund’s predecessor from its inception in 1996 to 2017. Messrs. Fink, Thompson, Vincent and Holland served as Portfolio Co-Managers of the fund’s predecessor from 2000, 2001, 2009 and 2014, respectively, to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Investment objective | The Carillon Reams Unconstrained Bond Fund (“Unconstrained Bond Fund” or the “fund”) seeks to maximize total return consistent with the preservation of capital.
Fees and expenses of the fund | The tables that follow describe the fees and expenses that you may pay if you buy and hold shares of the Unconstrained Bond Fund. You may qualify for sales discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the Class A shares of the Carillon Family of Funds. More information about these and other discounts is available from your financial professional, on page 82 of the fund’s Prospectus and on page 44 of the fund’s Statement of Additional Information. Although the fund does not impose any sales charge on Class I shares, you may pay a commission to your broker on your purchases and sales of those shares, which is not reflected in the tables or Example below.
Shareholder fees (fees paid directly from your investment): |
Class A |
Class C |
Class I |
Class
Y
|
Class R-3 |
Class R-5 |
Class R-6 |
Maximum Sales Charge Imposed on Purchases (as a % of offering price) | 3.75% | None | None | None | None | None | None |
Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | None (a) | 1.00% (a) | None | None | None | None | None |
Redemption Fee | None | None | None | None | None | None | None |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment): |
Class A |
Class C |
Class I |
Class Y |
Class R-3 |
Class R-5 |
Class R-6 |
Management Fees | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
Distribution and Service (12b-1) Fees | 0.25% | 1.00% | 0.00% | 0.25% | 0.50% | 0.00% | 0.00% |
Other Expenses | 0.35% | 0.82% | 0.23% | 0.29% | 1.15% | 0.85% | 0.16% |
Total Annual Fund Operating Expenses | 1.20% | 2.42% | 0.83% | 1.14% | 2.25% | 1.45% | 0.76% |
Fee Waiver and/or Expense Reimbursement (b) | (0.40)% | (0.87)% | (0.33)% | (0.34)% | (1.20)% | (0.95)% | (0.36)% |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 0.80% | 1.55% | 0.50% | 0.80% | 1.05% | 0.50% | 0.40% |
(a) If
you purchased $1,000,000 or more of Class A shares of a Carillon mutual fund
that were not otherwise eligible for a sales charge waiver and sell the shares
within 18 months from the date of purchase, you may pay up to a 1% contingent
deferred sales charge at the time of sale. If you sell Class C shares less than
one year after purchase, you will pay a 1% CDSC at the time of sale.
(b) Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of the fund to the extent that: annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows: Class A – 0.80%, Class C – 1.55%, Class I – 0.50%, Class Y – 0.80%, Class R-3 - 1.05%, Class R-5 – 0.50%, and Class R-6 – 0.40%. This expense limitation excludes interest, taxes, brokerage commissions, short sale dividends and interest expenses, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. The contractual fee waiver can be changed only with the approval of a majority of the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fee reimbursement.
Expense example | This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for each share class through February 29, 2020. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Share Class | Year 1 | Year 3 | Year 5 | Year 10 |
Class A | $454 | $704 | $973 | $1,741 |
Class C | $258 | $671 | $1,212 | $2,690 |
Class I | $51 | $232 | $428 | $995 |
Class Y | $82 | $329 | $595 | $1,356 |
Class R-3 | $107 | $588 | $1,095 | $2,491 |
Class R-5 | $51 | $365 | $702 | $1,653 |
Class R-6 | $41 | $207 | $387 | $909 |
Portfolio turnover | The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s performance.
During the most recent fiscal year, the fund’s portfolio turnover rate was 139% of the average value of its portfolio.
Principal investment strategies | The fund pursues its objective by investing at least 80% of its net assets in fixed income instruments. The fixed income instruments in which the fund may invest can be of varying maturities and include bonds, debt securities, mortgage- and asset-backed securities (including to-be-announced securities) and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The portfolio duration of the fund will normally not exceed 8 years but may be greater based on market conditions. The fund may also have a negative duration. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. A portfolio with negative duration generally incurs a loss when interest rates and yields fall. For purposes of calculating the fund’s portfolio duration, the fund includes the effect of the derivative instruments held by the fund.
In certain market conditions, the fund may pursue its investment objective by investing a significant portion of its assets in cash or short-term debt obligations. The fund may invest in both investment grade securities and non-investment grade securities, also known as high yield securities or “junk” bonds. The fund may invest without limitation in non-investment grade securities. Investment grade securities include securities rated in one of the four highest rating categories by a nationally recognized statistical rating organization, such as BBB- or higher by Standard & Poor’s Financial Services LLC (“S&P®”). The fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The fund may without limitation seek to obtain market exposure to the securities in which it primarily invests by entering into buybacks or dollar rolls. The fund may also invest without limitation in securities denominated in foreign currencies and in U.S. dollar denominated securities of foreign issuers. Mortgage-backed securities are pools of mortgage loans that are assembled as securities for sale to investors by various governmental, government-related and private organizations. Asset-backed securities are securities that are secured or “backed” by pools of various types of assets, such as automobile loans, consumer loans, credit cards and equipment leases, on which cash payments are due at fixed intervals over set periods of time.
The fund may invest in derivative instruments, such as options, futures contracts (including interest rate, bond, U.S. Treasury and fixed income index futures contracts), currency forwards and swap agreements (including credit default swaps) subject to applicable law and any other restrictions described in the fund’s Prospectus or Statement of Additional Information (“SAI”). The fund’s investment in credit default swap agreements may include both single-name credit default swap agreements and credit default swap index products, such as CDX index products. The use of these derivative transactions may allow the fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks. These derivatives may be used to enhance Fund returns, increase liquidity, manage the duration of the fund’s portfolio and/or gain exposure to certain instruments or markets (i.e., the corporate bond market) in a more efficient or less expensive way. The credit default swap agreements that the Fund invests in may provide exposure to an index of securities representative of the entire investment grade and high yield fixed income markets, which can include underlying issuers rated as low as CCC by S&P®. Derivative instruments that provide exposure to fixed income instruments may be used to satisfy the fund’s 80% investment policy.
The portfolio management team attempts to maximize total return by pursuing relative value opportunities throughout all sectors of the fixed income market. The portfolio managers screen hundreds of securities to determine how each will perform in various interest rate environments. The portfolio managers construct these scenarios by considering the outlook for interest rates, fundamental credit analysis and option-adjusted spread analysis. The portfolio managers compare these investment opportunities and assemble the fund’s portfolio from the best available values. The portfolio management team constantly monitors the expected returns of the securities in the fund versus those available in the market and of other securities the portfolio management team is considering for purchase. The portfolio management team’s strategy is to replace securities that it feels are approaching fair market value with those that, according to its analysis, are significantly undervalued. As a result of this strategy, the fund’s portfolio turnover rate will vary from year to year depending on market conditions and the fund may engage in frequent and active trading.
The fund may invest a substantial portion of its assets (more than 25%) in securities and instruments that are economically tied to one or more foreign countries if economic and business conditions warrant such investment. The fund will invest no more than 50% of its net assets in investments in developing countries or emerging markets.
Principal risks | The greatest risk of investing in the fund is that you could lose money. The values of most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund’s portfolio generally will decline when interest rates rise and increase when interest rates fall. As a result, the fund’s net asset value (“NAV”) may also increase or decrease. An investment in the fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Investments in this fund are subject to the following primary risks, which are described in alphabetical order and not in order of importance or potential exposure:
• Credit risk arises if an issuer of a fixed income security is unable to meet its financial obligations or goes bankrupt;
• Credit ratings risk is the risk associated with the fact that ratings by nationally recognized rating agencies generally represent the agencies’ opinion of the credit quality of an issuer and may prove to be inaccurate;
• Derivatives, such as swap agreements (including credit default swaps and credit default swap index products), options, futures contracts or currency forwards, may involve greater risks than if the fund invested in the reference obligation directly. These instruments are subject to general market risks, liquidity risks, interest rate risks, and credit risks. Derivatives also present the risk that the other party to the transaction will fail to perform. Derivatives also involve an increased risk of mispricing or improper valuation of the derivative instrument, and imperfect correlation between the value of the derivative and the underlying instrument so that the fund may not realize the intended benefits. When used for hedging, changes in the value of the derivative may also not correlate perfectly with the underlying asset, rate or index. Derivatives can cause the fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund’s initial investment. The derivatives market may be subject to additional regulations in the future;
• Emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy's dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. When investing in emerging markets, the risks of investing in foreign securities are heightened;
• Fixed income market risk is the risk that market conditions or other events that impact fixed income issuers, including adverse issuer, political, regulatory, market, economic or other developments that may cause broad changes in market value, public perceptions concerning these developments, and adverse investor sentiment, will have an adverse effect on the fund. Events in the fixed income markets may lead to periods of volatility, unusual liquidity issues and, in some cases, credit downgrades and increased likelihood of default. Such events may cause the value of securities owned by the fund to go up or down, sometimes rapidly or unpredictably, and may lead to increased redemptions, which could cause the fund to experience a loss when selling securities to meet redemption requests by shareholders;
• Foreign security risks, which are potential risks not associated with U.S. investments, include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing and financial reporting standards, (5) increased volatility, (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays in transaction settlement in some foreign markets. Foreign security risk may also apply to ADRs, GDRs and EDRs;
• High-yield security risk results from investments in below investment grade bonds, which have a greater risk of loss, are susceptible to rising interest rates and have greater volatility. Investments in high-yield securities (commonly referred to as “junk bonds”) are inherently speculative;
• Income risk is the risk that the fund’s income could decline due to falling market interest rates. In a falling interest rate environment, the fund may be required to invest its assets in lower-yielding securities;
• Interest rate risk is the risk that the value of a fund’s investments in fixed income securities will fall when interest rates rise. The Federal Reserve raised the federal funds rate several times since December 2015 and may continue to increase rates in the future. Interest rates may rise, perhaps significantly and/or rapidly, potentially resulting in substantial losses to the fund. The effect of increasing interest rates is more pronounced for any intermediate- or longer-term fixed income obligations owned by the fund. For example, if a bond has a duration of eight years, a 1% increase in interest rates could be expected to result in an 8% decrease in the value of the bond;
• Issuer risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services;
• Leverage risk is the risk that the use of financial instruments to increase potential returns, including the use of when-issued, delayed delivery or forward commitment transactions, and derivatives used for investment (non-hedging) purposes, may cause the fund to be more volatile than if it had not been leveraged. The use of leverage may also accelerate the velocity of losses and can result in losses to the fund that exceed the amount originally invested;
• Liquidity risk is the possibility that, during times of widespread market turbulence, trading activity in certain securities may be significantly hampered, which may reduce the returns of the fund because it may be unable to sell the securities at an advantageous price or time. Market prices for such securities may be volatile;
• Maturity risk is the risk associated with the fact that the fund will invest in fixed income securities of varying maturities. A fixed income security’s maturity is one indication of the interest rate exposure of a security. Generally, the longer a fixed income security’s maturity, the greater the risk. Conversely, the shorter a fixed income security’s maturity, the lower the risk;
• Mortgage- and asset-backed security risk, which is possible in an unstable or depressed housing market, arises from the potential for mortgage failure, premature repayment of principal, or a delay in the repayment of principal. In a to-be-announced (“TBA”) mortgage-backed transaction, the fund and the seller agree upon the issuer, interest rate and terms of the underlying mortgages. However, the seller does not identify the specific underlying mortgages until it issues the security. TBA mortgage-backed securities increase interest rate risks because the underlying mortgages may be less favorable than anticipated by the fund;
• Portfolio turnover risk is the risk that performance may be adversely affected by a high rate of portfolio turnover, which generally leads to greater transaction costs;
• Redemption risk is the risk that, due to a rise in interest rates or other changing government policies that may cause investors to move out of fixed income securities on a large scale, the fund may experience periods of heavy redemptions that could cause the fund to sell assets at inopportune times or at a loss or depressed value;
• Short sale risk includes the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the fund; and
• Valuation risk arises because the securities held by the fund are generally priced by an independent pricing service and may also be priced using dealer quotes or fair valuation methodologies in accordance with valuation procedures adopted by the fund’s Board. The prices provided by the independent pricing service or dealers or the fair valuations may be different from the prices used by other mutual funds or from the prices at which securities are actually bought and sold.
Performance | The bar chart that follows illustrates annual fund returns for the periods ended December 31. The table that follows compares the fund’s returns for various periods with benchmark returns. This information is intended to give you some indication of the risk of investing in the fund by demonstrating how its returns have varied over time. The bar chart shows the fund’s Class I share performance from one year to another. The Class I and Class Y shares of the fund have adopted the performance history and financial statements of the Institutional Class and Class Y shares, respectively, of the fund’s predecessor.
Each of the fund’s share classes is invested in the same portfolio of securities, and the annual returns would have differed only to the extent that the classes do not have the same sales charges and expenses. The fund’s past performance (before and after taxes) is not necessarily an indication of how the fund will perform in the future. To obtain more current performance data as of the most recent month-end, please visit our website at carillontower.com.
During 10 year period (Class I shares): | Return | Quarter Ended |
Best Quarter | 10.17% | March 31, 2012 |
Worst Quarter | (2.11)% | December 31, 2014 |
Average annual total returns
(for the periods ended December 31, 2018):
Fund return (after deduction of sales charges and expenses)
Share Class |
Inception Date |
1-yr | 5-yr |
Lifetime (if less than 10 yrs) |
Class I – Before Taxes | 9/29/11 | 0.53% | 0.79% | 4.64% |
After Taxes on Distributions | (0.31)% | 0.29% | 3.67% | |
After Taxes on Distributions and Sale of Fund Shares | (3.43)% | -0.26% | 3.79% | |
Class A – Before Taxes | 11/20/17 | (3.43)% | (3.07)% | |
Class C – Before Taxes | 11/20/17 | (0.53)% | (0.55)% | |
Class Y – Before Taxes | 12/31/12 | 0.13% | 0.48% | 0.97% |
Class R-3 – Before Taxes | 11/20/17 | (0.02)% | (0.04)% | |
Class R-5 – Before Taxes | 11/20/17 | 0.53% | 0.51% | |
Class R-6 – Before Taxes | 11/20/17 | 0.54% | 0.54% |
Index (reflects no deduction for fees, expenses or taxes) | 1-yr | 5-yr |
Lifetime (From Inception Date of Class I Shares) |
Lifetime (From Inception Date of Class A, Class C, Class R-3, Class R-5 and Class R-6 Shares) |
Lifetime (From Inception Date of Class Y Shares) |
BofA Merrill Lynch 3-Month LIBOR Constant Maturity Index (Lifetime period is measured from the inception date of Class I shares) |
2.07% | 0.86% | 0.71% | 1.97% | 0.76% |
After-tax returns are calculated using the historically highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as a 401(k) plan or individual retirement account (“IRA”). After-tax returns are shown for Class I only and after-tax returns for Class A, Class C, Class Y, Class R-3, Class R-5, and Class R-6 will vary. The return after taxes on distributions and sale of fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.
Investment Adviser | Carillon Tower Advisers, Inc. is the fund’s investment adviser.
Sub-adviser | Scout Investments, Inc., through its Reams Asset Management division, serves as the sub-adviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead Portfolio Manager of the fund and Thomas M. Fink, CFA®, Todd C. Thompson, CFA®, Stephen T. Vincent, CFA® and Clark W. Holland, CFA®, have served as Portfolio Co-Managers of the fund since the fund’s inception in 2017. Jason J. Hoyer, CFA®, has served as Portfolio Co-Manager of the fund since April 2018. Messrs. Egan, Fink, Thompson, Vincent, Holland and Hoyer are jointly and primarily responsible for the day-to-day management of the fund. Mr. Egan served as Lead Portfolio Manager of the fund's predecessor and Messrs. Fink, Thompson, and Vincent served as Portfolio Co-Managers of the fund's predecessor from its inception in 2011 to 2017. Mr. Holland served as Portfolio Co-Manager of the fund's predecessor from 2014 to 2017.
Purchase and sale of fund shares | You may purchase, redeem, or exchange Class A, C, I and Y shares of the fund on any business day through your financial intermediary, by mail at Carillon Family of Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor, Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In Class A and Class C shares, the minimum purchase amount is $1,000 for regular accounts, $500 for retirement accounts and $50 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. In Class Y shares, the minimum purchase amount is $1,000 for regular accounts, $100 for retirement accounts and $100 through a periodic investment program, with a minimum subsequent investment plan of $50 per month. For individual investors, the minimum initial purchase for Class I shares is $10,000, while fee-based plan sponsors set their own minimum requirements. Class R-3, Class R-5 and Class R-6 shares can only be purchased through a participating retirement plan and the minimum initial purchase for Class R-3, Class R-5 and Class R-6 shares is set by the plan administrator.
Tax information | The dividends you receive from the fund will be taxed as ordinary income or net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an IRA, in which case you may be subject to federal income tax on withdrawals from the arrangement.
Payments to broker-dealers and other financial intermediaries | If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
Risk
|
Carillon
ClariVest
Capital
Appreciation
Fund
|
Carillon
ClariVest
International
Stock
Fund |
Carillon
Cougar
Tactical
Allocation
Fund |
Carillon
Eagle
Growth
& Income
Fund
|
Carillon
Eagle
Mid
Cap Growth
Fund
|
Carillon
Eagle
Small
Cap
Growth
Fund |
Call
|
X
|
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Commodities
|
X
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Credit
|
X
|
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Credit
ratings |
X
|
|||||
Derivatives
|
||||||
Emerging
markets |
X
|
|||||
Equity
securities |
X
|
X
|
X
|
X
|
X
|
X
|
Fixed
income market |
X
|
|||||
Focused
holdings |
X
|
X
|
||||
Foreign
securities |
X
|
X
|
X
|
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Fund
of funds |
X
|
|||||
Growth
stocks |
X
|
X
|
X
|
X
|
X
|
X
|
High-yield
securities |
X
|
|||||
Inflation
|
X
|
|||||
Initial
public offerings |
X
| |||||
Interest
rate |
X
|
|||||
Liquidity
|
X
|
X
|
||||
Market
and Stock Market |
X
|
X
|
X
|
X
|
X
|
X
|
Market
timing |
X
|
X
|
X
| |||
Mid-cap
companies |
X
|
X
|
X
|
X
|
X
| |
Mortgage and asset-backed
securities |
X
|
|||||
Municipal
securities |
X
|
|||||
Other investment companies, including ETFs |
X
|
X
|
||||
Portfolio
turnover |
X
|
X
|
||||
Quantitative
Strategy |
X
|
X
|
||||
Redemptions
|
X
|
|||||
Sectors
|
X
|
X
|
X
| |||
Small-cap
companies |
X
|
X
|
X
| |||
U.S.
Government securities and Government sponsored
enterprises |
X
|
|||||
Value
stocks |
X
|
X
|
Risk
|
Carillon
Scout
International
Fund
|
Carillon
Scout
Mid Cap Fund |
Carillon
Scout
Small Cap Fund |
Carillon
Reams
Core Bond Fund |
Carillon
Reams
Core
Plus Bond
Fund
|
Carillon
Reams
Unconstrained
Bond
Fund |
Commodities
|
||||||
Credit
|
X
|
X
|
X
| |||
Credit
ratings |
X
|
X
|
X
| |||
Derivatives
|
X
|
X
|
X
| |||
Emerging
markets |
X
|
X
|
X
|
X
| ||
Equity
securities |
X
|
X
|
X
|
|||
Fixed
income market |
X
|
X
|
X
| |||
Focused
holdings |
X
|
|||||
Foreign
securities |
X
|
X
|
X
|
X
|
X
|
X
|
Growth
stocks |
X
|
X
|
X
|
|||
High-yield
securities |
X
|
X
| ||||
Income
|
X
|
X
|
X
| |||
Interest
rates |
X
|
X
|
X
| |||
Issuer
|
X
|
X
|
X
| |||
Leverage
|
X
|
X
|
X
| |||
Liquidity
|
X
|
X
|
X
|
X
| ||
Market
and Stock Market |
X
|
X
|
X
|
|||
Market
timing |
X
|
X
|
||||
Maturity
|
X
|
X
|
X
| |||
Mid-cap
companies |
X
|
X
|
||||
Mortgage
and asset-backed securities |
X
|
X
|
X
| |||
Other
investment companies and ETFs |
||||||
Portfolio
turnover |
X
|
X
|
X
|
X
| ||
Redemptions
|
X
|
X
|
X
| |||
Sectors
|
X
|
|||||
Short
sales |
X
| |||||
Small-cap
companies |
X
|
X
|
||||
U.S.
Government securities and Government sponsored enterprises |
||||||
Valuation
|
X
|
X
|
X
| |||
Value
stocks |
X
|
X
|
X
|
Carillon Mutual Funds
PROSPECTUS | 3. 1. 2019
Call | Call risk is the possibility that, as interest rates decline to a level that is significantly lower than the rate assigned to the fixed income security, the security may be called (redeemed) prior to maturity. A fund would lose the benefit of holding a fixed income security that is paying a rate above the current market rate and would likely have to reinvest the proceeds in other fixed income securities that have lower yields.
Commodities | The value of commodities may be more volatile than the value of equity securities or debt instruments and their value may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity. Investments in commodities, such as gold, or in commodity-linked instruments, will subject a fund’s portfolio to volatility that may also deviate from price movements in equity and fixed income securities. The value of commodity-linked instruments typically is based upon the price movements of underlying commodities and, therefore, may fluctuate widely based on a variety of both macroeconomic and commodity-specific factors. At times, these price fluctuations may be significant or rapid, and may not correlate to price movements in other asset classes. There may also be an imperfect correlation between the value of commodity-linked instruments and the underlying assets. Investments in these types of instruments may subject a fund to additional expenses.
Credit | A fund could lose money if the issuer of a fixed income security is unable or unwilling, or is perceived as unable or unwilling (whether by market participants, ratings agencies, pricing services or otherwise) to meet its financial obligations or goes bankrupt. Securities are subject to varying degrees of credit risk, which are often reflected in their credit ratings. The downgrade of the credit rating of a security held by a fund may decrease its value. Credit risk usually applies to most fixed income securities. U.S. government securities, especially those that are not backed by the full faith and credit of the U.S. Treasury, such as securities supported only by the credit of the issuing governmental agency or government-sponsored enterprise, carry at least some risk of nonpayment, and the maximum potential liability of the issuers of such securities may greatly exceed their current resources. There is no assurance that the U.S. government would provide financial support to the issuing entity if not obligated to do so by law. Further, any government guarantees on U.S. government securities that a fund owns extend only to the timely payment of interest and the repayment of principal on the securities themselves and do not extend to the market value of the securities themselves or to shares of the fund.
Credit Ratings | Ratings by nationally recognized rating agencies represent the agencies’ opinion of the credit quality of an issuer. However, these ratings are not absolute standards of quality and do not guarantee the creditworthiness of an issuer. Ratings do not necessarily address market risk and may not be revised quickly enough to reflect changes in an issuer’s financial condition.
Derivatives | Derivatives, such as options, futures contracts, currency forwards or swap agreements, may involve greater risks than if a fund had invested in the reference obligation directly. Derivatives are subject to general market risks, liquidity risks, interest rate risk, and credit risks. Derivatives also present the risk that the other party to the transaction will fail to perform. Derivatives also involve an increased risk of mispricing or improper valuation of the derivative instrument, and imperfect correlation between the value of the derivative and the underlying instrument so that a fund may not realize the intended benefits. When used for hedging, changes in the value of the derivative may also not correlate perfectly with the underlying asset, rate or index. Derivatives risk may be more significant when derivatives are used to enhance fund returns, increase liquidity, manage the duration of a fund’s portfolio and/or gain exposure to certain instruments or markets, rather than solely to hedge the risk of a position held by the fund. Derivatives can cause a fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund’s initial investment. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that a fund will engage in these transactions to reduce exposure to other risks when that would be beneficial. The regulation of cleared and uncleared swap agreements, as well as other derivatives, is a rapidly changing area of law and is subject to modification by government and judicial action. It is not possible to predict fully the effects of current or future regulation. Changes in government regulation of various types of derivatives instruments may make derivatives more costly or limit the availability of derivatives, which may limit or prevent a fund from using certain types of derivative instruments as part of its investment strategy; may affect the character, timing of recognition and amount of a fund’s taxable income or recognized gains or losses; or may otherwise adversely affect the value or performance of derivatives. Compared to other types of investments, derivatives may also be less tax efficient. A fund’s use of derivatives may be limited by the requirements for taxation of the fund as a regulated investment company.
Emerging Markets | When investing in emerging markets, the risks of investing in foreign securities discussed below are heightened. Emerging markets have unique risks that are greater than or in addition to investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. In addition, there may be less information available to make investment decisions and more volatile rates of return.
Equity Securities |A fund’s equity securities investments are subject to stock market risk. Such investments may also expose a fund to additional risks:
● | Common Stocks. The value of a company’s common stock may fall as a result of factors directly relating to that company, such as decisions made by its management or decreased demand for the company’s products or services. A stock’s value may also decline because of factors affecting not just the company, but also companies in the same industry or sector. The price of a company’s stock may also be affected by changes in financial markets that |
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| 71
Carillon Mutual Funds
PROSPECTUS | 3. 1. 2019
are unrelated to the company, such as changes in interest rates, exchange rates or industry regulation. Companies that pay dividends on their common stock generally only do so after they invest in their own business and make required payments to bondholders and on other debt and preferred stock. Therefore, the value of a company’s common stock will usually be more volatile than its bonds, other debt and preferred stock. |
● | Preferred Stocks. Preferred securities are subject to issuer-specific and stock market risks; however, preferred securities may be less liquid than common stocks and offer more limited participation in the growth of an issuer. If interest rates rise, the dividend on preferred stocks may be less attractive, causing the price of preferred stocks to decline. Preferred shareholders may have only certain limited rights if distributions are not paid for a stated period, but generally have no legal recourse against the issuer and may suffer a loss of value if distributions are not paid. Preferred stocks may have mandatory sinking fund provisions, as well as provisions for their call or redemption prior to maturity which can have a negative effect on their prices when interest rates decline. Because the rights of preferred stock on distribution of a corporation’s assets in the event of its liquidation are generally subordinated to the rights associated with a corporation’s debt securities, in the event of an issuer’s bankruptcy, there is substantial risk that there will be nothing left to pay preferred stockholders after payments, if any, to bondholders have been made. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial condition or prospects. |
● | Convertible Securities. The investment value of a convertible security (“convertible”) is based on its yield and tends to decline as interest rates increase. The conversion value of a convertible is the market value that would be received if the convertible were converted to its underlying common stock. Since it derives a portion of its value from the common stock into which it may be converted, a convertible is also subject to the same types of market and issuer-specific risks that apply to the underlying common stock. A convertible may be subject to redemption at the option of the issuer at a price established in the convertible’s governing instrument, which may be less than the current market price of the security. Convertibles typically are “junior” securities, which means an issuer may pay interest on its non-convertible debt before it can make payments on its convertibles. In the event of a liquidation, holders of convertibles may be paid before a company’s common stockholders but after holders of a company’s senior debt obligations. |
● | Depositary Receipts. A fund may invest in securities issued by foreign companies through ADRs, GDRs and EDRs. These securities are subject to many of the risks inherent in investing in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt. |
● | REITs. REITs or other real estate-related securities are subject to the risks associated with direct ownership of real estate, including declines in the value of real estate, risks related to general and local economic conditions or changes in demographic trends or tastes, increases in operating expenses, and adverse governmental, legal or regulatory action (such as changes to zoning laws, changes in interest rates, condemnation, tax increases, regulatory limitations on rents, or enforcement of or changes to environmental regulations). Shares of REITs may trade less frequently and, therefore, are subject to more erratic price movements than securities of larger issuers. REITs typically incur fees that are separate from those incurred by a fund, meaning a fund’s investment in REITs will result in the layering of expenses such that as a shareholder, a fund will indirectly bear a proportionate share of a REIT’s operating expenses. |
● | Rights and Warrants. Investments in rights and warrants may be more speculative than certain other types of investments because rights and warrants do not carry dividend or voting rights with respect to the underlying securities or any rights in the assets of the issuer. In addition, the value of a right or a warrant does not necessarily change with the value of the underlying securities and a right or a warrant ceases to have value if it is not exercised prior to its expiration date. |
● | Dividend-Paying Stocks. Securities of companies that have historically paid a high dividend yield may reduce or discontinue their dividends, reducing the yield of the Fund. Low priced securities in the fund may be more susceptible to these risks. Past dividend payments are not a guarantee of future dividend payments. Also, the market return of high dividend yield securities, in certain market conditions, may perform worse than other investment strategies or the overall stock market. Changes to the dividend policies of companies in which a fund invests and the capital resources available for dividend payment at such companies may harm fund performance. A fund may also be harmed by changes to the favorable federal income tax treatment generally afforded to dividends. |
Fixed income market | Fixed income market risk is the risk that the prices of, and the income generated by, fixed income securities held by a fund may decline significantly and/or rapidly in response to adverse issuer, political, regulatory, general economic and market conditions, or other developments, such as regional or global economic instability (including terrorism and related geopolitical risks), interest rate fluctuations, and those events directly involving the issuers that may cause broad changes in market value, public perceptions concerning these developments, and adverse investor sentiment. These events may lead to periods of volatility, which may be exacerbated by changes in bond market size and structure. In addition, adverse market events may lead to increased redemptions, which could cause a fund to experience a loss when selling securities to meet redemption requests by shareholders. The risk of loss increases if the redemption requests are unusually large or frequent.
Focused holdings | For funds that normally hold a core portfolio of securities of fewer companies than other more diversified funds, the increase or decrease of the value of a single security may have a greater impact on the fund’s NAV and total return when compared to other diversified funds.
Foreign securities | | Investments in foreign securities involve greater risks than investing in domestic securities. As a result, a fund’s return and NAV may be affected by fluctuations in currency exchange rates or political or economic conditions and regulatory requirements in a particular country. Foreign markets, as well as foreign economies and political systems, may be less stable than U.S. markets, and changes in the exchange rates of foreign currencies can affect the value of a fund’s foreign assets. Foreign laws and accounting standards typically are not as strict as they are in the U.S., and there may
72 | carillontower.com
Carillon Mutual Funds
PROSPECTUS | 3. 1. 2019
be less public information available about foreign companies. Custodial and/or settlement systems in foreign markets may not be fully developed and the laws of certain countries may limit the ability to recover assets if a foreign bank or depository or their agents goes bankrupt. Foreign securities may be less liquid than domestic securities and there may be delays in transaction settlement in some foreign markets. Over a given period of time, foreign securities may underperform U.S. securities—sometimes for years. A fund could also underperform if it invests in countries or regions whose economic performance falls short. The risks associated with investments in governmental or quasi-governmental entities of a foreign country are heightened by the potential for unexpected governmental change, which may lead to default or expropriation, and inadequate government oversight and accounting. Obligations of supranational entities are subject to the risk that the governments on whose support the entity depends for its financial backing or repayment may be unable or unwilling to provide that support. The effect of recent, worldwide economic instability on specific foreign markets or issuers may be difficult to predict or evaluate. Some national economies continue to show profound instability, which may in turn affect their international trading and financial partners or other members of their currency bloc. Foreign security risk may also apply to ADRs, GDRs and EDRs.
The precise details and the resulting impact of the United Kingdom's vote to leave the European Union (the "EU"), commonly referred to as "Brexit," are not yet known. The effect on the United Kingdom's economy will likely depend on the nature of trade relations with the EU and other major economies following its exit, which are matters to be negotiated. The outcomes may cause increased volatility and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time, which could significantly adversely affect the value of a fund's investments in the United Kingdom and Europe.
Fund of funds | Because investments in securities of other investment companies, including ETFs, are subject to statutory limitations prescribed in the 1940 Act and the rules thereunder if the Tactical Allocation Fund is unable to rely on an ETF’s exemptive order permitting unaffiliated funds to invest in the ETF’s shares beyond these statutory limitations, the fund may be unable to allocate its investments in the manner the sub-adviser considers prudent, or the sub-adviser may have to select an investment other than that which the sub-adviser considers suitable.
Because the Tactical Allocation Fund invests principally in underlying funds, and the fund’s performance is directly related to the performance of such underlying funds, the ability of the fund to achieve its investment objectives is directly related to the ability of the underlying funds to meet their investment objectives. The investment techniques and risk analysis used by the fund’s and the underlying funds’ portfolio managers may not produce the desired results.
Growth stocks | Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, investors may punish the prices of stocks excessively, even if earnings showed an absolute increase. Growth company stocks also typically lack the dividend yield that can cushion stock prices in market downturns.
High-yield securities | Investments in securities rated below investment grade, or “junk bonds,” generally involve significantly greater risks of loss of your money than an investment in investment grade bonds. Compared with issuers of investment grade bonds, junk bonds are more likely to encounter financial difficulties and to be materially affected by these difficulties. Rising interest rates may compound these difficulties and reduce an issuer’s ability to repay principal and interest obligations. Issuers of lower-rated securities also have a greater risk of default or bankruptcy. Additionally, due to the greater number of considerations involved in the selection of a fund’s securities, the achievement of a fund’s objective depends more on the skills of the portfolio manager than investing only in higher-rated securities. Therefore, your investment may experience greater volatility in price and yield. High-yield securities may be less liquid than higher quality investments. A security whose credit rating has been lowered may be particularly difficult to sell.
Income | A fund’s income could decline due to falling market interest rates. In a falling interest rate environment, a Fund may be required to invest its assets in lower-yielding securities. Because interest rates vary, it is impossible to predict the income or yield of a fund for any particular period.
Inflation | Inflation risk is the risk that the market value of securities will decrease as higher inflation shrinks the purchasing power of any affected currencies, thus causing the purchasing power not to keep pace with inflation.
Initial public offerings | The market value of shares sold in an initial public offering (“IPO”) may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information about the issuer. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the IPO. The purchase of IPO shares may also involve high transaction costs. These offerings may produce gains that positively affect Fund performance during any given period, but such securities may not be available during other periods, or, even if they are available, may not be available in sufficient quantity to have a meaningful impact on Fund performance. They may also produce losses.
Interest rates | Investments in investment grade and non-investment grade fixed income securities are subject to interest rate risk. The value of a fund’s fixed income investments typically will fall when interest rates rise. A fund may be particularly sensitive to changes in interest rates if it invests in debt securities with intermediate and long terms to maturity. Debt securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than debt securities with shorter durations. For example, if a bond has a duration of five years, a 1% increase in interest rates could be expected to result in a 5% decrease in the value of the bond. The Federal Reserve raised the federal funds rate several times since December
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Carillon Mutual Funds
PROSPECTUS | 3. 1. 2019
Issuer | The value of a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets.
Leverage | Certain transactions of a fund may give rise to a form of leverage. Such transactions may include, among others, the use of buybacks, dollar rolls, and when-issued, delayed delivery or forward commitment transactions. Certain derivatives that a fund may use may create leverage. Derivatives that involve leverage can result in losses to a fund that exceed the amount originally invested in the derivatives. Certain types of leveraging transactions, such as short sales that are not “against the box,” could be subject to unlimited losses in cases where a fund, for any reason, is unable to close out the transaction. The use of leverage may cause a fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leveraging may cause a fund to be more volatile than if the fund had not been leveraged. This is because leveraging tends to exaggerate the effect of any increase or decrease in the value of a fund’s portfolio securities.
Liquidity | Liquidity risk is the possibility that the fund might be unable to sell a security promptly and at an acceptable price, which could have the effect of decreasing the overall level of the fund’s liquidity. Market developments may cause the fund’s investments to become less liquid and subject to erratic price movements. In addition, the market-making capacity of dealers in certain types of securities has been reduced in recent years, in part as a result of structural and regulatory changes, such as fewer proprietary trading desks and increased capital requirements for broker-dealers. Further, many broker-dealers have reduced their inventory of certain debt securities. This could negatively affect a fund's ability to buy or sell debt securities and increase the related volatility and trading costs. The fund could lose money if it cannot sell a security at the time and price that would be most beneficial to the fund. The fund may be required to dispose of investments at unfavorable times or prices to satisfy obligations, which may result in losses or may be costly to the fund. For example, liquidity risk may be magnified in rising interest rate environments due to higher than normal redemption rates.
Market and Stock Market | Markets may at times be volatile and the value of a fund’s stock holdings may decline in price, sometimes significantly and/or rapidly, because of changes in prices of its holdings or a broad stock market decline. The value of a security may decline due to adverse issuer-specific conditions or general market conditions which are not specifically related to a particular company, such as real or perceived adverse political, regulatory, market, economic or other developments that may cause broad changes in market value, changes in the general outlook for corporate earnings, changes in interest or currency rates, public perceptions concerning these developments or adverse investment sentiment generally. During a general downturn in the securities markets, multiple asset classes may decline in value simultaneously. Terrorism and related geopolitical risks have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on world economies and markets generally. In addition, markets and market participants are increasingly reliant upon both publicly available and proprietary information data systems. Data imprecision, software or other technology malfunctions, programming inaccuracies, unauthorized use or access, and similar circumstances may impair the performance of these systems and may have an adverse impact upon a single issuer, a group of issuers, or the market at large. In certain cases, an exchange or market may close or issue trading halts on either specific securities or even the entire market, which may result in a fund being, among other things, unable to buy or sell certain securities or financial instruments or accurately price its investments. These fluctuations in stock prices could be a sustained trend or a drastic movement. The stock markets generally move in cycles, with periods of rising prices followed by periods of declining prices. The value of your investment may reflect these fluctuations. The impact of new financial regulation legislation on the markets and the practical implications for market participants may not be fully known for some time. Regulatory changes are causing some financial services companies to exit long-standing lines of business, resulting in dislocations for other market participants. In addition, political and diplomatic events within the United States and abroad, such as the U.S. government's inability at times to agree on a long-term budget and deficit reduction plan, the threat of a federal government shutdown and threats not to increase the federal government's debt limit, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. The U.S. government has recently reduced federal corporate income tax rates, and future legislative, regulatory and policy changes may result in more restrictions on international trade, less stringent prudential regulation of certain players in the financial market, and significant new investments in infrastructure and national defense. Markets may react strongly to expectations about the changes in these policies, which could increase volatility, especially if the markets' expectations for changes in government policies are not borne out.
Market timing | Because of specific securities a fund may invest in, it could be subject to the risk of market timing activities by fund shareholders. Some examples of these types of securities are high-yield, small-cap and foreign securities. Typically, foreign securities offer the most opportunity for these market timing activities. A fund generally prices these foreign securities using their closing prices from the foreign markets in which they trade, typically prior to a fund’s calculation of its NAV. These prices may be affected by events that occur after the close of a foreign market but before a fund prices its shares. In such instances, a fund may fair value foreign securities. However, some investors may engage in frequent short-term trading in a fund to take advantage of any price differentials that may be reflected in the NAV of a fund’s shares. There is no assurance that fair valuation of securities can reduce
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Carillon Mutual Funds
PROSPECTUS | 3. 1. 2019
or eliminate market timing. There is no guarantee that Carillon Tower Advisers, Inc. (the “Manager”) and transfer agent of the Funds can detect all market timing activities.
Maturity | A Fund will invest in fixed income securities of varying maturities. A fixed income security’s maturity is one indication of the interest rate exposure of a security. Generally, the longer a fixed income security’s maturity, the greater the risk. Conversely, the shorter a fixed income security’s maturity, the lower the risk.
Mid-cap companies | Investments in mid-cap companies generally involve greater risks than investing in large-capitalization companies. Mid-cap companies often have narrower markets and limited managerial and financial resources compared to larger, more established companies. The performance of mid-cap companies can be more volatile, and their stocks less liquid, compared to larger, more established companies, which could increase the volatility of a fund's portfolio and performance. Shareholders of a fund that invests in mid-cap companies should expect that the value of the fund’s shares will be more volatile than a fund that invests exclusively in large-cap companies. Generally, the smaller the company size, the greater these risks.
Mortgage- and asset-backed securities | Mortgage- and asset-backed security risk, which is possible in an unstable or depressed housing market, arises from the potential for mortgage failure or premature repayment of principal, or a delay in the repayment of principal. The reduced value of the fund’s securities and the potential loss of principal as a result of a mortgagee’s failure to repay would have a negative impact on the fund. Premature repayment of principal would make it difficult for the fund to reinvest the prepaid principal at a time when interest rates on new mortgages are declining, thereby reducing the fund’s income. Conversely, a delay in the repayment of principal could lengthen the expected maturity of the securities, thereby increasing the potential for loss when prevailing interest rates rise, which could cause the values of the securities to fall sharply. In a to-be-announced (“TBA”) mortgage-backed transaction, a fund and the seller agree upon the issuer, interest rate and terms of the underlying mortgages. However, the seller does not identify the specific underlying mortgages until it issues the security. TBA mortgage-backed securities increase interest rate risks because the underlying mortgages may be less favorable than anticipated by a fund.
Municipal securities | A municipal security’s value, interest payments or repayment of principal could be affected by economic, legislative or political changes. Municipal securities are also subject to potential volatility in the municipal market and the fund’s share price, yield and total return may fluctuate in response to municipal bond market movements. Municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, as opposed to general tax revenues, may have increased risks. Changes in a municipality’s financial health may affect its ability to make interest and principal payments when due.
Other investment companies, including ETFs | Investments in the securities of other investment companies, including exchange-traded funds (“ETFs”) (which may, in turn invest in equities, bonds, and other financial vehicles), may involve duplication of advisory fees and certain other expenses. By investing in another investment company, a fund becomes a shareholder of that investment company. As a result, fund shareholders indirectly bear the fund’s proportionate share of the fees and expenses paid by the other investment company, in addition to the fees and expenses fund shareholders indirectly bear in connection with the fund’s own operations. Investments in other investment companies will subject a fund to the risks of the types of investments in which the investment companies invest.
As a shareholder, a fund must rely on the other investment company to achieve its investment objective. If the other investment company fails to achieve its investment objective, the value of the fund’s investment will typically decline, adversely affecting the fund’s performance. In addition, because ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, ETF shares may potentially trade at a discount or a premium. Investments in ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to a fund. Finally, because the value of ETF shares depends on the demand in the market, the portfolio manager may not be able to liquidate a fund’s holdings of ETF shares at the most optimal time, adversely affecting the fund’s performance. An ETF that tracks an index may not precisely replicate the returns of its benchmark index.
Portfolio turnover | A fund may engage in more active and frequent trading of portfolio securities to a greater extent than certain other mutual funds with similar investment objectives. A fund’s turnover rate may vary greatly from year to year or during periods within a year. A high rate of portfolio turnover may lead to greater transaction costs, result in adverse tax consequences to investors (from increased recognition of net capital gains, which are taxable to shareholders when distributed to them) and adversely affect performance.
Quantitative Strategy Risk | The success of a fund's investment strategy may depend in part on the effectiveness of a sub-adviser's quantitative tools for screening securities. Securities selected using quantitative analysis can react differently to issuer, political, market, and economic developments than the market as a whole or securities selected using only fundamental analysis, which could adversely affect their value. A subadviser's quantitative tools may use factors that may not be predictive of a security's value, and any changes over time in the factors that affect a security's value may not be reflected in the quantitative model. The sub-adviser's stock selection can be adversely affected if it relies on insufficient, erroneous or outdated data or flawed models or computer systems.
Redemptions | A fund may experience periods of heavy redemptions that could cause a fund to sell assets at inopportune times or at a loss or depressed value. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in a fund, have short
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investment horizons, or have unpredictable cash flow needs. A general rise in interest rates has the potential to cause investors to move out of fixed income securities on a large scale, which may increase redemptions from mutual funds that hold large amounts of fixed income securities. This, coupled with a reduction in the ability or willingness of dealers and other institutional investors to buy or hold fixed income securities, may result in decreased liquidity and increased volatility in the fixed income markets, and heightened redemption risk. Heavy redemptions, whether by a few large investors or many smaller investors, could hurt a fund’s performance.
Sectors | Companies that are in similar businesses may be similarly affected by particular economic or market events, which may, in certain circumstances, cause the value of securities of all companies in a particular sector of the market to change. To the extent a fund has substantial holdings within a particular sector, the risks associated with that sector increase.
Health care sector | The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are (i) heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability, (ii) subject to extensive litigation based on product liability and similar claims, and (iii) subject to competitive forces that may make it difficult to raise prices and, may result in price discounting. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays in or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector.
Information technology sector | The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products could have a material adverse effect on a company's business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies.
Short sales | A short sale creates the risk of a loss if the price of the underlying security increases, thus increasing the cost to a fund of buying those securities to cover the short position. The potential for greater losses may be incurred due to general market forces, such as a lack of securities available for short sellers to borrow for delivery, or increases in the price of a security sold short. A fund may lose more money than the actual cost of a short sale investment. Also, there is the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to a fund.
Small-cap companies | Investments in small-cap companies generally involve greater risks than investing in large-capitalization companies. Companies with smaller market capitalizations generally have lower volume of shares traded daily, less liquid stock and more volatile stock prices. Companies with smaller market capitalizations also tend to have a limited product or service base and limited access to capital. Newer companies with unproven business strategies also tend to be smaller companies. The above factors increase risks and make these companies more likely to fail than companies with larger market capitalizations, and could increase the volatility of a fund's portfolio and performance. Shareholders of a fund that invests in small-cap companies should expect that the value of the fund's shares will be more volatile than a fund that invests exclusively in mid-cap or large-cap companies. Generally, the smaller the company size, the greater these risks.
U.S. Government securities and Government sponsored enterprises | A security backed by the U.S. Treasury or the full faith and credit of the United States is only guaranteed by the applicable entity only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Investments in securities issued by Government sponsored enterprises are debt obligations issued by agencies and instrumentalities of the U.S. Government. These obligations vary in the level of support they receive from the U.S. Government. They may be: (1) supported by the full faith and credit of the U.S. Treasury, such as those of the Government National Mortgage Association; (2) supported by the right of the issuer to borrow from the U.S. Treasury, such as those of the Federal Home Loan Bank and the Federal Farm Credit Banks; (3) supported by the discretionary authority of the U.S. Government to purchase the agency obligations, such as those of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; or (4) supported only by the credit of the issuer, such as those of the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or instrumentalities if it is not legally obligated to do so. In such circumstances, if the issuer defaulted, a fund may not be able to recover its investment from the U.S. Government. Like all bonds, U.S. Government securities and Government-sponsored enterprise bonds are also subject to credit risk.
Valuation | Securities held by a fund may be priced by an independent pricing service and may also be priced using dealer quotes or fair valuation methodologies in accordance with valuation procedures adopted by the fund’s Board. The prices provided by the independent pricing service or dealers or the fair valuations may be different from the prices used by other mutual funds or from the prices at which securities are actually bought and sold.
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Value stocks | Investments in value stocks are subject to the risk that their true worth may not be fully realized by the market. This may result in the value stocks’ prices remaining undervalued for extended periods of time. A fund’s performance also may be affected adversely if value stocks remain unpopular with or lose favor among investors.
Management of Funds
Carillon Tower Advisers, Inc. (“Carillon” or “Manager”) located at 880 Carillon Parkway, St. Petersburg, Florida 33716, serves as investment adviser and administrator for the funds (the “Funds”). Carillon manages, supervises and conducts the business and administrative affairs of the Funds. Carillon is a wholly owned subsidiary of Raymond James Financial, Inc. (“RJF”) which, together with its subsidiaries, provides a wide range of financial services to retail and institutional clients. As of December 31, 2018, Carillon and its investment management affiliates collectively had approximately $61.0 billion in assets under management and advisement*
*Includes Carillon Tower Advisors, Inc. ($14.5 billion), Eagle Asset Management, Inc. ($18.7 billion) and Eagle’s wholly owned subsidiary Eagle Boston Investment Management, Inc. ($309 million) as well as affiliates ClariVest Asset Management LLC ($6.4 billion); Cougar Global Investments LTD ($1.1 billion); Scout Investments ($1.6 billion); and Reams Asset Management ($18.7 billion) which is a division of Scout Investments.
The basis for the Board’s approval of each Investment Advisory contract with Carillon is contained in the annual report for the 12 month period ended October 31, 2018. The table below contains the effective investment advisory fee rate for the last fiscal year for each fund as a percentage of each fund’s average daily net assets, which takes into account fee caps, fee recovery and breakpoints, as applicable. For funds that have breakpoints in their fee rate, the advisory fee rate may decline as assets increase.
Fee Rates Charged | |
Carillon ClariVest Capital Appreciation Fund | 0.60% |
Carillon ClariVest International Stock Fund | 0.70% |
Carillon Cougar Tactical Allocation Fund | 0.57% |
Carillon Eagle Growth & Income Fund | 0.47% |
Carillon Eagle Mid Cap Growth Fund | 0.52% |
Carillon Eagle Small Cap Growth Fund | 0.51% |
Carillon Scout International Fund | 0.80% |
Carillon Scout Mid Cap Fund | 0.75% |
Carillon Scout Small Cap Fund | 0.65% |
Carillon Reams Core Bond Fund | 0.40% |
Carillon Reams Core Plus Bond Fund | 0.40% |
Carillon Reams Unconstrained Bond Fund | 0.60% |
Each fund has entered into an Administration Agreement with Carillon under which each fund pays Carillon for various administrative services at a rate of 0.10% of the average daily net assets for all share classes.
Carillon is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. On behalf of each fund, an exemption from registration or regulation as a commodity pool operator under the Commodity Exchange Act has been claimed with the Commodity Futures Trading Commission (“CFTC”) and Carillon is exempt from registration as a commodity trading adviser under CFTC Regulation 4.14(a)(8) with respect to the fund.
As a fund’s asset levels change, its fees and expenses may differ from those reflected in the fund’s fee tables. For example, as asset levels decline, expense ratios may increase. Carillon has contractually agreed to waive its investment advisory fee and/or reimburse certain expenses of a fund to the extent that annual operating expenses of each class exceed a percentage of that class’ average daily net assets through February 29, 2020 as follows:
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Contractual Expense Limitations | |||||||
Class A | Class C | Class I | Class Y | Class R-3 | Class R-5 | Class R-6 | |
Carillon ClariVest Capital Appreciation Fund |
1.00% | 1.75% | 0.70% | 1.00% | 1.25% | 0.70% | 0.60% |
Carillon ClariVest International Stock Fund | 1.45% | 2.20% | 1.15% | 1.45% | 1.70% | 1.15% | 1.05% |
Carillon Cougar Tactical Allocation Fund | 1.17% | 1.92% | 0.87% | 1.17% | 1.42% | 0.87% | 0.77% |
Carillon Eagle Growth & Income Fund | 1.25% | 2.00% | 0.95% | 1.25% | 1.50% | 0.95% | 0.85% |
Carillon Eagle Mid Cap Growth Fund | 1.25% | 2.00% | 0.95% | 1.25% | 1.50% | 0.95% | 0.85% |
Carillon Eagle Small Cap Growth Fund | 1.25% | 2.00% | 0.95% | 1.25% | 1.50% | 0.95% | 0.85% |
Carillon Scout International Fund | 1.45% | 2.20% | 1.15% | 1.45% | 1.70% | 1.15% | 1.05% |
Carillon Scout Mid Cap Fund | 1.45% | 2.20% | 1.15% | 1.45% | 1.70% | 1.15% | 1.05% |
Carillon Scout Small Cap Fund | 1.25% | 2.00% | 0.95% | 1.25% | 1.50% | 0.95% | 0.85% |
Carillon Reams Core Bond Fund | 0.80% | 1.55% | 0.40% | 0.80% | 1.05% | 0.50% | 0.40% |
Carillon Reams Core Plus Bond Fund | 0.80% | 1.55% | 0.40% | 0.80% | 1.05% | 0.50% | 0.40% |
Carillon Reams Unconstrained Bond Fund | 0.80% | 1.55% | 0.50% | 0.80% | 1.05% | 0.50% | 0.40% |
For each fund, the expense limitation excludes interest, taxes, brokerage commissions, costs relating to investments in other investment companies (acquired fund fees and expenses), dividends, and extraordinary expenses. For Carillon Scout International Fund, Carillon Scout Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund, the expense limitation also excludes short sale dividend and interest expenses. The contractual fee waiver can be changed only with the approval of a majority of the Board. Any reimbursement of fund expenses or reduction in Carillon’s investment advisory fees is subject to reimbursement by the fund within the following two fiscal years, if overall expenses fall below the lesser of its then current expense cap or the expense cap in effect at the time of the fund reimbursement.
Carillon has selected the following sub-advisers to provide investment advice and portfolio management services to the Funds’ portfolios:
• | Eagle Asset Management, Inc. (“Eagle”), 880 Carillon Parkway, St. Petersburg, FL 33716, serves as the sub-adviser to the Carillon Eagle Growth & Income Fund, Carillon Eagle Mid Cap Growth Fund and Carillon Eagle Small Cap Growth Fund. As of December 31, 2018, Eagle had approximately $18.7 billion of assets under management. |
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• | ClariVest Asset Management LLC (“ClariVest”), 3611 Valley Centre Drive, Suite 100, San Diego, CA 92130, serves as the sub-adviser to the Carillon ClariVest Capital Appreciation Fund and the Carillon ClariVest International Stock Fund. As of December 31, 2018, ClariVest had approximately $6.4 billion of assets under management. |
• | Cougar Global Investments Limited (“Cougar Global”), 40 King Street West, Scotia Plaza, Suite 2706, Toronto, Ontario, Canada M5H 3Y2, serves as the sub-adviser to the Carillon Cougar Tactical Allocation Fund. As of December 31, 2018, Cougar Global had approximately $1.1 billion of assets under management. |
• | Scout Investments, Inc. (“Scout”), 1201 Walnut Street, 21st Floor, Kansas City, MO 64106, serves as the sub-adviser to the Carillon Scout International Fund, Carillon Scout Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund. As of December 31, 2018, Scout had approximately $20.3 billion of assets under management. Scout’s Reams Asset Management division provides sub-advisory services to the Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund. |
The Funds currently operate in a multi-manager structure pursuant to an exemptive order issued by the Securities and Exchange Commission (“SEC”). The order permits Carillon, subject to certain conditions, to enter into new or modified subadvisory agreements with existing or new sub-advisers, which are either wholly owned by Carillon or RJF, or not affiliated with Carillon, without the approval of fund shareholders, but subject to approval by the Board. Carillon has the ultimate responsibility for overseeing the Fund’s sub-advisers and recommending their hiring, termination and replacement, subject to oversight by the Board. The order also grants Carillon and the Funds relief with respect to the disclosure of the advisory fees paid to individual sub-advisers in various documents filed with the SEC and provided to shareholders. Pursuant to this relief, the Funds may disclose the aggregate fees payable to unaffiliated sub-advisers, the aggregate fees payable to Carillon and wholly-owned sub-advisers, and the fees payable to each sub-adviser affiliated with Carillon or RJF, other than wholly-owned sub-advisers.
Carillon and the Funds also have applied to the SEC for relief with respect to sub-advisers that are partially-owned by, or otherwise affiliated with, Carillon Tower or RJF. If this order is granted, the Funds may rely on the new exemptive order with respect to partially-owned sub-advisers. Carillon would continue to have ultimate responsibility for overseeing sub-advisers and recommending their hiring, termination and replacement, subject to oversight by the Board. Pursuant to this relief, the Funds may disclose the aggregate fees payable to Carillon and wholly-owned sub-advisers and the aggregate fees payable to unaffiliated sub-advisers and sub-advisers affiliated with Carillon or RJF, other than wholly-owned sub-advisers.
If a Fund relies on the existing order or any new order to hire a new sub-adviser, the Fund will provide shareholders with certain information regarding the sub-adviser within 90 days of hiring the new sub-adviser, as required by the order.
In the future, Carillon may propose the addition of one or more additional sub-advisers, subject to approval by the Board and, if required by the 1940 Act, or any applicable exemptive relief, fund shareholders. The Prospectus will be supplemented if additional investment sub-advisers are retained or the contract with any existing sub-adviser is terminated.
The following portfolio managers are responsible for the day-to-day management of the investment portfolio:
• | Carillon ClariVest Capital Appreciation Fund — David J. Pavan, CFA®, C. Frank Feng, Ph.D., Ed Wagner, CFA® and Todd N. Wolter, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund. Mr. Pavan, Dr. Feng, Mr. Wagner have been Portfolio Managers of the fund since 2013. Mr. Pavan and Dr. Feng have served as portfolio managers at ClariVest since cofounding it in 2006. Mr. Wagner joined ClariVest in 2007 as a portfolio manager. Prior to forming ClariVest in 2006, Mr. Pavan and Dr. Feng were portfolio managers at Nicholas-Applegate Capital Management. Prior to joining ClariVest in 2007, Mr. Wagner was a business analyst at Advent Software. Mr. Wolter, Chief Investment Officer – U.S. and Alternative Strategies for ClariVest, provides strategic direction and oversight for the investment process used for the fund and has been a Portfolio Manager of the fund since February 2019. Mr. Wolter has served as Portfolio Manager at ClariVest since co-founding the firm in 2006. |
• | Carillon ClariVest International Stock Fund – David R. Vaughn, CFA®, Alex Turner, CFA®, and Priyanshu Mutreja, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund – Mr. Vaughn since its inception in 2013, Mr. Turner since 2015, and Mr. Mutreja since 2017. Mr. Vaughn has served as a Principal and Portfolio Manager at ClariVest since co-founding it in 2006. Mr. Turner served as Assistant Portfolio Manager of the fund from its inception until 2015. Prior to joining ClariVest in 2008, Mr. Turner served as a Quantitative Analytic Specialist at FactSet Research Systems, Inc. Mr. Mutreja, was an Assistant Portfolio Manager of the fund from 2015 to 2017. Prior to joining ClariVest in 2009, Mr. Mutreja was an Associate Intern with Citigroup Global Capital Markets Inc. |
• | Carillon Cougar Tactical Allocation Fund — Abdullah Sheikh, FSA, MAAA, is the Portfolio Manager of the fund and has been primarily responsible for the day-to-day management of the fund since April 2018. Mr. Sheikh joined Cougar Global in 2017, after eleven years at J.P. Morgan Asset Management. Mr. Sheikh has spent the majority of his career developing frameworks designed to generate optimal strategic and tactical asset allocations for a range of sophisticated institutional and retail clients. Prior to joining J.P. Morgan Asset Management, Mr. Sheikh was an actuarial analyst for four years at Watson |
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Wyatt Worldwide. He earned a bachelor’s degree in actuarial science from the London School of Economics and Political Science and a Master’s Degree in computational finance from Carnegie Mellon University. |
• | Carillon Eagle Growth & Income Fund — Edmund Cowart, CFA®, David Blount, CFA®, CPA, and Harald Hvideberg, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund. Messrs. Cowart and Blount have been Portfolio Managers of the fund since 2011. Mr. Hvideberg has served as the fund’s Portfolio Manager since 2014. Mr. Cowart joined Eagle in 1999 and has been a Senior Vice President, Managing Director and Portfolio Manager at Eagle since 1999. Mr. Blount joined Eagle in 1993, was a Senior Research Analyst at Eagle from 1999 through 2008 and has been a Portfolio Manager at Eagle since 2008. Prior to joining Eagle in 2014, Mr. Hvideberg served as Managing Director, Chief Investment Officer, and Portfolio Manager at Wood Asset Management from 2004 to 2014 and as Portfolio Manager at William R. Hough & Co. from 1999 to 2004. |
• | Carillon Eagle Mid Cap Growth Fund — Bert L. Boksen, CFA®, and Eric Mintz, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund – Mr. Boksen since the fund’s inception in 1998 and Mr. Mintz since 2011. Mr. Boksen has been a Managing Director and Senior Vice President of Eagle since 1995. Previously, Mr. Mintz served as Assistant Portfolio Manager since 2008 and Senior Research Analyst since 2005. Christopher Sassouni, D.M.D., has been Assistant Portfolio Manager and Vice President of Eagle since 2006 and assists Mr. Boksen and Mr. Mintz in the responsibilities of managing the fund. |
• | Carillon Eagle Small Cap Growth Fund — Bert L. Boksen, CFA®, and Eric Mintz, CFA®, are Portfolio Managers of the fund and are jointly and primarily responsible for the day-to-day management of the fund. Mr. Boksen has been responsible for the day-to-day management of a portion of the fund since 1995 and as of 2008, Mr. Boksen has been responsible for the day-to-day management of the entire fund. Mr. Boksen has been a Managing Director and Senior Vice President of Eagle since 1995. Mr. Mintz has been Portfolio Manager of the fund since 2011. Previously, Mr. Mintz served as Assistant Portfolio Manager since 2008 and Senior Research Analyst at Eagle since 2005. Christopher Sassouni, D.M.D., has served as Assistant Portfolio Manager of the fund since 2015 and Vice President of Eagle since 2006. He assists Mr. Boksen and Mr. Mintz in the responsibilities of managing the fund. |
• | Carillon Scout International Fund — Michael D. Stack, CFA®, is the Lead Portfolio Manager of the Fund and Angel M. Lupercio is Portfolio Co-Manager of the fund. Messrs. Stack and Lupercio are jointly and primarily responsible for the day-to-day management of the fund. Mr. Stack was Assistant Portfolio Manager of the fund’s predecessor from 2006 through 2007; Portfolio Co-Manager of the fund’s predecessor from 2012 through 2014; Co-Lead Portfolio Manager of the fund’s predecessor from March 2014 through December 2014; and Lead Portfolio Manager of the fund’s predecessor from 2015 to 2017. Mr. Lupercio served as Portfolio Co-Manager of the fund’s predecessor from 2015 to 2017. Mr. Stack has served as a portfolio manager at Scout since 2006. Prior to joining Scout, he was employed at Overseas Asset Management (Cayman) LTD from 2002-2004, U.S. Trust Company of New York from 1998-2001 and J&T Securities, Inc. from 1996-1997. Mr. Stack earned his Bachelor of Commerce from University College Dublin and an MBA in Finance from Columbia Business School in New York. Mr. Stack is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. Mr. Lupercio joined Scout Investments in 2007, following previous employment at A.G. Edwards & Sons, Inc. from 2005-2007 and Bear Stearns from 2002-2005. Mr. Lupercio earned his Bachelor of Science in Business Administration from Rockhurst University and his MBA with a concentration in finance from the Olin Business School at Washington University in St. Louis. Mr. Lupercio is a member of the CFA® Society Kansas City. |
• | Carillon Scout Mid Cap Fund — G. Patrick Dunkerley, CFA®, is the Lead Portfolio Manager of the fund and Derek M. Smashey, CFA®, John A. Indellicate II, CFA® and Jason J. Votruba, CFA®, are Portfolio Co-Managers of the fund. Messrs. Dunkerley, Smashey, Indellicate and Votruba are jointly and primarily responsible for the day-to-day management of the fund. Mr. Dunkerley served as Lead Portfolio Manager of the fund’s predecessor and Mr. Smashey served as Portfolio Co-Manager of the fund’s predecessor from its inception in 2006 to 2017. Messrs. Indellicate and Votruba served as Portfolio Co-Managers of the fund’s predecessor from 2011 and 2013, respectively, to 2017. Mr. Dunkerley joined Scout in 2006, following previous employment at Victory Capital Management from 2001-2006, where he served as an assistant portfolio manager, and subsequently as chief investment officer of mid cap core equity and as the lead portfolio manager of a mid cap mutual fund and mid cap separate accounts. Mr. Dunkerley earned his Bachelor of Science in Business Administration from the University of Missouri and his MBA from Golden Gate University. Mr. Dunkerley is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. Mr. Smashey joined Scout in 2006, following previous employment at Nations Media Partners, Inc. from 2003-2006, where he served as an associate director, and Sprint Corporation from 2000-2003 where he served as Internal Consultant. Mr. Smashey earned his Bachelor of Science in Finance from Northwest Missouri State University and his MBA from the University of Kansas. Mr. Smashey is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. Mr. Indellicate joined Scout Investments in 2004 and has since served as a quantitative analyst and a securities analyst. He earned his Bachelor of Arts in Economics from Harvard University. Mr. Indellicate is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. Previously, Mr. Votruba served as a portfolio manager of the Carillon Scout Small Cap Fund since he joined Scout in 2002. Prior to joining Scout, Mr. Votruba provided investment advice at George K. Baum & Company from 2000-2002 and Commerce Bank from 1998-2000. Mr. Votruba earned his Bachelor of Science in Business Administration from Kansas State University. He is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. |
• | Carillon Scout Small Cap Fund — James R. McBride, CFA®, is the Lead Portfolio Manager of the fund and Timothy L. Miller, CFA® is Portfolio Co-Manager of the fund. Messrs. McBride and Miller are jointly and primarily responsible for the day-to-day management of the fund. Mr. McBride was Portfolio Co-Manager of the fund’s predecessor from 2010 through 2015 and served as Lead Portfolio Manager of the fund’s predecessor from 2015 to 2017. Mr. Miller served as Portfolio Co-Manager of the fund’s predecessor from 2013 to 2017. Mr. McBride joined Scout in 2009. Prior to joining Scout, Mr. McBride co-founded and served as Vice President/portfolio manager of TrendStar Advisors, LLC from 2003-2009. Mr. McBride was also previ- |
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ously employed by Kornitzer Capital Management, Inc. as a Vice President and research analyst from 2000 until he left to co-found TrendStar Advisors, LLC in 2003. Prior to joining Kornitzer Capital, Mr. McBride served in a number of increasingly responsible positions with Hewlett-Packard and subsidiary companies of Hewlett-Packard from 1989-2000. Mr. McBride earned a Bachelor of Science, with honors, in Mechanical Engineering from Wichita State University and an MBA in Finance from Indiana University. Mr. McBride is also a graduate of the General Electric Manufacturing Management Program for Manufacturing Engineers. He is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. Previously, Mr. Miller served as a senior investment analyst for Scout’s domestic equity strategies since he joined Scout in 2012. Prior to joining Scout, Mr. Miller served as a senior investment analyst for American Century Investments from 2007-2012. Mr. Miller’s investment experience also includes employment at Insight Capital Research & Management, C.E. Unterberg Towbin, and Banc of America Securities. Mr. Miller earned his MBA in Finance from Indiana University and his Bachelor of Arts in Economics from UCLA. He is a CFA® charterholder and a member of the CFA® Society Kansas City as well as the CFA® Institute. |
• | Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund — Mark M. Egan, CFA®, has served as the Lead Portfolio Manager of each fund and Thomas M. Fink, CFA®, Todd C. Thompson, CFA®, Stephen T. Vincent, CFA® and Clark W. Holland, CFA®, have served as Portfolio Co-Managers of each fund since each fund’s inception in 2017. Jason J. Hoyer, CFA®, has served as Portfolio Co-Manager of each fund since April 2018. Messrs. Egan, Fink, Thompson, Vincent, Holland and Hoyer are jointly and primarily responsible for the day-to-day management of the fund. Mr. Egan served as the Lead Portfolio Manager of the Carillon Reams Core Bond Fund’s predecessor and Messrs. Fink and Thompson served as Portfolio Co-Managers of the Carillon Reams Core Bond Fund’s predecessor from its inception in 2001 to 2017. Messrs. Vincent and Holland served as Portfolio Co-Managers of the Carillon Reams Core Bond Fund’s predecessor from 2009 and 2014, respectively, to 2017. Mr. Egan served as Lead Portfolio Manager of the Carillon Reams Core Plus Bond Fund’s predecessor from its inception in 1996 to 2017. Messrs. Fink, Thompson, Vincent and Holland served as Portfolio Co-Managers of the Carillon Reams Core Plus Bond Fund’s predecessor from 2000, 2001, 2009 and 2014, respectively, to 2017. Mr. Egan served as Lead Portfolio Manager of the Carillon Reams Unconstrained Bond Fund’s predecessor and Messrs. Fink, Thompson, and Vincent served as Portfolio Co-Managers of the Carillon Reams Unconstrained Bond Fund’s predecessor from its inception in 2011 to 2017. Mr. Holland served as Portfolio Co-Manager of the Carillon Reams Unconstrained Bond Fund’s predecessor from 2014 to 2017. |
• | Mr. Egan joined Scout in 2010. He oversees the entire fixed income division of Scout, Reams Asset Management, and retains oversight over all investment decisions. Mr. Egan was a portfolio manager of Reams Asset Management Company, LLC (“Reams”) from 1994 until 2010 and was a portfolio manager of Reams Asset Management Company, Inc. from 1990 until 1994. Mr. Egan was a portfolio manager of National Investment Services until 1990. He is a CFA® charterholder and a member of the CFA® Institute. |
• | Mr. Fink joined Scout in 2010. He was a portfolio manager at Reams from 2000 until 2010. Mr. Fink was previously a portfolio manager at Brandes Fixed Income Partners from 1999 until 2000, Hilltop Capital Management from 1997 until 1999, Centre Investment Services from 1992 until 1997 and First Wisconsin Asset Management from 1986 until 1992. He is a CFA® charterholder and a member of the CFA® Institute. |
• | Mr. Thompson joined Scout in 2010. He was a portfolio manager at Reams from 2001 until 2010. Mr. Thompson was a portfolio manager at Conseco Capital Management from 1999 until June 2001 and was a portfolio manager at the Ohio Public Employees Retirement System from 1994 until 1999. He is a CFA® charterholder and a member of the CFA® Institute. |
• | Mr. Vincent joined Scout in 2010. He was a portfolio manager at Reams from 2005 until 2010. Mr. Vincent was a senior fixed income analyst at Reams from 1994 to 2005. He is a CFA® charterholder and a member of the CFA® Institute. |
• | Mr. Holland joined Scout in 2010 and became a portfolio manager in 2014. He was a portfolio analyst at Scout from 2010 until 2014 and at Reams from 2002 until 2010. Prior to joining the firm, Mr. Holland was a portfolio manager and investment product specialist at Wells Fargo Investment Management Group. He is a CFA® charterholder and a member of the CFA® Institute. |
• | Mr. Hoyer joined Scout in 2015 as a fixed income credit analyst and became a portfolio manager in April 2018. Prior to joining Reams, the fixed income division of Scout, in 2015, Mr. Hoyer was a senior credit analyst at 40 | 86 Advisors and a director in the research department at Fiduciary Management Associates. He is a CFA® charterholder and a member of the CFA® Institute. |
Additional information about portfolio manager compensation, other accounts managed by the portfolio managers, and portfolio manager ownership of fund shares is found in the Statement of Additional Information (“SAI”).
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PROSPECTUS | 3. 1. 2019
Carillon Fund Distributors, Inc. (“Distributor”), a subsidiary of Eagle Asset Management, Inc., serves as the distributor of the Funds. The Distributor may compensate other broker-dealers to promote sales of fund shares. The Distributor’s role is that of an underwriter and it serves only as an agent for accepting shareholder instructions and does not maintain brokerage accounts for any shareholders.
Each Fund has adopted a distribution plan for each share class under Rule 12b-1. The distribution plans allow a fund to pay distribution and service fees for the sale of shares and for services provided to shareholders. Because these fees are paid out of a fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. Under the Funds’ distribution plans, each Fund is authorized to pay a maximum distribution and service fee of up to 0.35% of average daily assets on Class A shares, except for the Capital Appreciation Fund and the Growth & Income Fund which are authorized to pay a maximum distribution and service fee of up to 0.50% of average daily assets on Class A shares. Each Fund’s Board of Trustees has approved a current fee of 0.25% on Class A shares. Also, under the Funds’ distribution plans, each fund is authorized to pay a maximum distribution and service fee of up to 1.00% of average daily net assets on Class C shares, 0.25% of average daily net assets on Class Y shares and 0.50% of average daily net assets on Class R-3 shares. Each fund’s Board has approved current fees of 1.00% on Class C shares, 0.25% on Class Y shares and 0.50% on Class R-3 shares, respectively.
The Funds currently do not incur any direct distribution expenses related to Class I, Class R-5 or Class R-6 shares. However, Carillon or any third party may make payments for the sale and distribution of Class I, Class R-5 or Class R-6 shares from its own resources.
Payments to Financial Intermediaries
Carillon, the Distributor or one or more of their corporate affiliates (“Affiliate” or “Affiliates”) make cash payments or waive or reimburse costs to financial intermediaries in connection with the promotion and sale of shares of the Funds. Carillon or the Distributor also make cash payments or waive or reimburse costs to one or more of its Affiliates. Cash payments, waivers or reimbursements include cash revenue sharing payments and other payments for certain administrative services, transaction processing services and certain other marketing support services. Carillon or its Affiliates make these payments from their own resources, not out of fund assets (i.e., without additional cost to the Funds or their shareholders), and the Distributor generally makes such payments from the retention of underwriting concessions or 12b-1 fees. The Board, Carillon or its Affiliates may terminate or suspend payments or waivers or reimbursements of costs at any time. In this context, the term “financial intermediaries” includes any broker, dealer, bank (including bank trust departments), trust company, registered investment adviser, financial planner, retirement plan administrator and any other financial intermediary having a selling, administration, trust processing or similar agreement with Carillon, the Distributor and/or an Affiliate.
Carillon or its Affiliates make revenue sharing payments as incentives to certain financial intermediaries to promote and sell shares of the Funds. Revenue sharing arrangements are not financed by the Funds, and thus, do not result in increased fund expenses. Carillon and its Affiliates make these payments out of their own resources, including from the profits derived from management or other fees received from the Funds. The benefits that Carillon and its Affiliates receive when these payments are made include, among other things, placing the Funds on the financial adviser’s fund sales system, possibly placing the Funds on the financial intermediary’s preferred or recommended fund list, and access (in some cases on a preferential basis over other competitors) to individual members of the financial intermediary’s sales force or to the financial intermediary’s management. Revenue sharing payments are sometimes referred to as “shelf space” payments because the payments compensate the financial intermediary for including the Funds in its fund sales system (on its “sales shelf”). Carillon and its Affiliates compensate financial intermediaries differently depending on the level and/or type of considerations provided by the financial intermediary. The revenue sharing payments Carillon or its Affiliates make may be calculated on the average daily net assets of the applicable Funds attributable to that particular financial intermediary (“Asset-Based Payments”). Asset-Based Payments primarily create incentives to retain previously sold shares of the Funds in investor accounts. The revenue sharing payments Carillon or its Affiliates make may be also calculated on sales of new shares in the Funds attributable to a particular financial intermediary (“Sales-Based Payments”). Sales-Based Payments may create incentives for the financial intermediary to, among other things, sell more shares of a particular fund or to switch investments between funds frequently.
Carillon or its Affiliates also make other payments to certain financial intermediaries for processing certain transactions or account maintenance activities (such as processing purchases, redemptions or exchanges, cash sweep payments, or producing customer account statements) or for providing certain other marketing support services (such as financial assistance for conferences, seminars or sales or training programs at which Carillon’s or its Affiliates’ personnel may make presentations on the Funds to the financial intermediary’s sales force and clients). Financial intermediaries may earn profits on these payments for these services, since the amount of the payment may exceed the cost of providing the service. Certain of these payments are subject to limitations under applicable law. An Affiliate also makes payments to financial intermediaries for these services, to the extent that these services replace services that would otherwise be provided by the Funds’ transfer agent or otherwise would be a direct obligation of the Funds. The Funds, subject to limits
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Your Investment
PROSPECTUS | 3. 1. 2019
authorized by the Board, reimburse the Affiliate for these payments as transfer agent out-of-pocket expenses.
Payments from Carillon or its Affiliates to financial intermediaries may also include the payment or reimbursement of all or a portion of “ticket charges.” Ticket charges are fees charged to salespersons purchasing through a financial intermediary firm in connection with mutual fund purchases, redemptions, or exchanges. The payment or reimbursement of ticket charges creates an incentive for salespersons of an intermediary to sell shares of the funds over shares of funds for which there is lesser or no payment or reimbursement of any applicable ticket charge. Payments made with respect to certain classes of shares may create an incentive for an intermediary to promote or favor certain share classes of the funds.
Carillon and its Affiliates are motivated to make the payments described above since they promote the sale of fund shares and the retention of those investments by clients of financial intermediaries. To the extent financial intermediaries sell more shares of the Funds or retain shares of the Funds in their clients’ accounts, Carillon and its Affiliates benefit from the incremental management and other fees paid to Carillon and its Affiliates by the Funds with respect to those assets.
In certain cases, these payments could be significant to the financial intermediary. Your financial intermediary may charge you additional fees and/or commissions other than those disclosed in this Prospectus. You can ask your financial intermediary about any payments it receives from Carillon or its Affiliates or the Funds, as well as about fees and/or commissions it charges.
Your Investment
Each fund offers Class A, Class C, Class I, Class Y, Class R-3, Class R-5 and Class R-6 shares. Each class of shares represents an investment in the same portfolio of securities, but each class has a different combination of purchase restrictions, sales charges and ongoing fees allowing you to choose the class that best meets your needs. Some factors you might consider when choosing a share class include:
•the length of time you expect to own the shares;
•how much you intend to invest;
•total expenses associated with owning shares of each class;
•whether you qualify for any reduction or waiver of sales charges;
•whether you plan to take any distributions in the near future; and
•the availability of the share classes.
You should read this section carefully to determine which class of shares is best for you and discuss your selection with your financial adviser. The following sections explain the sales charges or other fees you may pay when investing in each class.
You may purchase Class A shares at the “offering price,” which is a price equal to their NAV, plus a sales charge imposed at the time of purchase. Class A shares currently are subject to ongoing distribution and service (Rule 12b-1) fees equal to 0.25% of their average daily net assets. If you choose to invest in Class A shares, you will pay a sales charge at the time of each purchase. The table below shows the charges both as a percentage of offering price and as a percentage of the amount you invest. Because of rounding of the calculation in determining the sales charges, you may pay more or less than what is shown in the tables below. If you invest more, the sales charge will be lower.
Sales Charge as a percentage of: | |||
Your Investment in equity funds |
Offering Price (a) |
Your Investment (a) |
Dealer Concession as % of offering price (b) |
Less than $25,000 | 4.75% | 4.99% | 4.25% |
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Your Investment
PROSPECTUS | 3. 1. 2019
$25,000-$49,999.99 | 4.25% | 4.44% | 3.75% |
$50,000-$99,999.99 | 3.75% | 3.90% | 3.25% |
$100,000-$249,999.99 | 3.25% | 3.36% | 2.75% |
$250,000-$499,999.99 | 2.50% | 2.56% | 2.00% |
$500,000-$999,999.99 | 1.50% | 1.52% | 1.25% |
$1,000,000 and over | 0.00% | 0.00% | See “Sales Charge Waiver” section |
Sales Charge as a percentage of: | |||
Your Investment in fixed income funds |
Offering Price (a) |
Your Investment (a) |
Dealer Concession as % of offering price (b) |
Less than $25,000 | 3.75% | 3.99% | 3.25% |
$25,000-$49,999.99 | 3.25% | 3.44% | 2.75% |
$50,000-$99,999.99 | 2.75% | 2.90% | 2.25% |
$100,000-$249,999.99 | 2.25% | 2.36% | 1.75% |
$250,000-$499,999.99 | 1.50% | 1.56% | 1.00% |
$500,000-$999,999.99 | 0.50% | 0.52% | 0.25% |
$1,000,000 and over | 0.00% | 0.00% | See “Sales Charge Waiver” section |
(a) As a result of rounding, the actual sales charge for a transaction may be higher or lower than the sales charges listed. (b) During certain periods, the Distributor may pay 100% of the sales charge to participating dealers. Otherwise, it will pay the dealer concession shown above.
To receive a reduction or waiver in your Class A initial sales charge, you must advise your financial adviser or the Funds of your eligibility at the time of purchase. If you or your financial adviser does not let the Funds know that you are eligible for a reduction, you may not receive a sales charge discount to which you are otherwise entitled. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you or your financial adviser to provide the Funds with information and records (including account statements) of all relevant accounts invested in the Funds. To have your Class A or Class C contingent deferred sales charge waived, you or your financial adviser must let the Funds know at the time you redeem shares that you qualify for such a waiver.
The availability of certain sales charge waivers and discounts will depend on whether you purchase your shares directly from the Fund or through a financial intermediary. 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.
The Funds offer programs designed to reduce your Class A sales charges as described in the preceding schedule. For purposes of calculating your sales charge, you can combine purchases of Class A and Class C shares for all mutual funds managed by the Manager in the account owner relationships listed below.
•Accounts owned by you, your spouse or minor children, including trust or other fiduciary accounts in which you, your spouse or minor children are the beneficiary. This includes sole proprietor business accounts;
•Accounts opened under a single trust agreement — including those with multiple beneficiaries;
•Purchases made by a qualified retirement or employee benefit plan of a single employer; and
•Purchases made by a company, provided the company is not in existence solely for purchasing investment company shares.
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PROSPECTUS | 3. 1. 2019
Rights of accumulation | You may combine your
new purchase of Class A shares with the Class A and Class C shares currently
owned for the purpose of qualifying for the lower sales charge rates that apply
to larger purchases. The applicable sales charge for the new purchase is based
on the total of your current purchase and the value based on the NAV at the
close of business on the previous day of all other shares you own. For example,
if you previously purchased $20,000 of a mutual fund managed by the Manager and
made a subsequent investment of $10,000 in Class A shares, a sales charge
discount would be applied to the $10,000 investment.
Letter of intent | You may combine Class A and Class C share purchases of any fund managed by the Manager over a 13-month period and receive the same sales charge as if all shares had been purchased at once by signing a Letter of Intent (“LOI”). You must inform your financial adviser or the Funds that you have an LOI each time you make an investment. Shares purchased within 90 days of the date you sign the LOI may be used as credit toward completion, but the reduced sales charge will only apply to new purchases made on or after that date. If you fail to make an investment sufficient to meet the intended investment within the 13-month period, the difference in Class A sales charges will be charged to your account. Purchases resulting from the reinvestment of dividends and other distributions do not apply toward fulfillment of the LOI. Shares equal to 4.75% of the amount of the LOI will be held in escrow during the 13-month period. If, at the end of that time the total amount of purchases made is less than the amount intended, you will be required to pay the difference between the reduced sales charge and the sales charge applicable to the individual purchases had the LOI not been in effect. This amount will be obtained from redemption of the escrow shares. Any remaining escrow shares will be released to you.
SIMPLE IRA | By investing in a SIMPLE IRA plan you and all plan participants will receive a reduced Class A sales charge on all plan contributions that exceed quantity discount amounts. SIMPLE IRA plan accounts are not eligible to be counted under a rights of accumulation or LOI sales charge reduction or waiver with accounts other than accounts in the SIMPLE IRA plan unless approved by the Manager.
Front-end sales load waivers on Class A shares available at Raymond James
• | Shares purchased in an investment advisory program; |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family); |
• | 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; and |
CDSC Waivers on Classes A, B and C shares available at Raymond James
• | Death or disability of the shareholder; |
• | Shares sold as part of a systematic withdrawal plan as described in the fund’s Prospectus; |
• | Return of excess contributions from an IRA Account; |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½ 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; and |
Front-end load discounts available at Raymond James: breakpoints, and/or rights of accumulation
• | Breakpoints as described in this prospectus; |
• | Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets. |
Front-end Sales Charge Waivers on Class A Shares available at Merrill Lynch
Shareholders purchasing Fund shares through a Merrill Lynch platform or account are eligible only for the following front-end load discounts, which may differ from those disclosed elsewhere in this Prospectus or the SAI:
• | Breakpoints as described in this Prospectus; |
|
● |
Rights of Accumulation
which entitle shareholders to breakpoint discounts will be automatically
calculated based on the aggregated holding of fund family assets held by
accounts within the purchaser’s household at Merrill Lynch. Eligible fund
family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor
about such assets; and |
● |
LOIs which allow for
breakpoint discounts based on anticipated purchases within a fund family,
through Merrill Lynch, over a 13-month period of
time. |
● |
Employer-sponsored retirement plans (e.g.,
401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing
and money purchase pension plans and defined benefit plans). For purposes
of this provision, employer-sponsored retirement plans do not include SEP
IRAs, Simple IRAs, SAR-SEPs or Keogh plans |
● |
Shares purchased through reinvestment of
dividends and other 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. |
● |
The Manager, its affiliates, directors,
officers and employees; Trustees and directors of any affiliate of the
Manager; any mutual fund managed by the Manager and current and retired
officers and Trustees of a fund; the sub-adviser of any mutual fund
managed by the Manager and its current directors, officers and employees;
employees and registered financial advisers of broker-dealers that have
selling arrangements with the Funds’ Distributor; directors, officers and
employees of banks and trust companies that are party to agency agreements
with the Distributor; all such persons’ immediate relatives (spouse,
parents, siblings, children — including in-law relationships) and
beneficial accounts; |
● |
Investors who participate in certain wrap fee
investment programs or certain retirement programs sponsored by
broker-dealers or other service organizations which have entered into
service agreements with the Manager or the Distributor. Such programs
generally have other fees and expenses, so you should read any materials
provided by that organization; and |
● |
Investors who participate in self-directed
investment accounts offered by financial intermediaries who have entered
into a selling agreement with the Funds’ Distributor. Financial
intermediaries offering self-directed accounts may or may not charge a
transaction fee to their customers, so you should read any materials
provided by those financial
intermediaries. |
● | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan; |
● |
Shares purchased by or
through a 529 plan; |
● |
Shares purchased through a
Merrill Lynch affiliated investment advisory
program; |
● |
Shares purchased by third
party investment advisors on behalf of their advisory clients through
Merrill Lynch’s platform; |
● |
Shares of funds purchased
through the Merrill Edge Self-Directed
platform; |
● |
Shares purchased through
reinvestment of capital gains distributions and dividend reinvestment when
purchasing shares of the same fund (but not any other fund within the fund
family); |
● |
Shares exchanged from
Class C (i.e. level-load) shares of the same
fund in the month of or following the 10-year anniversary of the purchase
date: |
● |
Employees and registered
representatives of Merrill Lynch or its affiliates and their family
members; |
● |
Directors or Trustees of
the Fund, and employees of the Fund’s investment adviser or any of its
affiliates, as described in the this Prospectus;
and |
● |
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). |
● |
To make certain distributions from retirement
plans; |
● |
Because of shareholder death or disability
(including shareholders who own shares in joint tenancy with a
spouse); |
● |
To make payments through certain sales from a
Systematic Withdrawal Plan of up to 12% annually of the account balance at
the beginning of the plan; or |
● |
Due to involuntary redemptions by a fund as a
result of your account not meeting the minimum balance requirements, the
termination and liquidation of a fund, or other
actions. |
● |
Death or disability of the
shareholder; |
● |
Shares sold as part of a
systematic withdrawal plan as described in this
Prospectus; |
● |
Return of excess
contributions from an IRA; |
|
● |
Shares sold as part of a
required minimum distribution for IRA and retirement accounts due to the
shareholder reaching age 70½; |
● |
Shares sold to pay Merrill
Lynch fees but only if the transaction is initiated by Merrill
Lynch; |
● |
Shares acquired through a
right of reinstatement; and |
● |
Shares held in retirement
brokerage accounts, that are exchanged for a lower cost share class due to
transfer to a fee based account or platform (applicable to A and C shares
only); |
Type of
account |
Initial
investment |
Subsequent
investment |
Regular account |
$1,000 |
No minimum |
Periodic investment
program |
$50 |
$50 per month |
Retirement account |
$500 |
No
minimum |
Regular
mail
Carillon
Family of Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
Overnight
delivery
Carillon
Family of Funds
c/o
U.S. Bank Global Fund Services
615
East Michigan Street, Third Floor
Milwaukee,
WI 53202-5207 |
● |
From Your Bank Account — You may instruct us
to transfer funds from a specific bank checking or savings account to your
account. This service is only available in instances in which the transfer
can be effected by automated clearing house transfer (“ACH”). Complete the
appropriate sections of the account application or the Account Options
form to activate this service. If your bank rejects your payment, the
Funds’ transfer agent will charge a $25 fee to your account. The Funds
reserve the right to cancel an automatic investment program if payment
from your bank is rejected for two consecutive periods or if you make
regular withdrawals from your account without maintaining the minimum
balance. |
● |
Automatic Exchange — You may make automatic
regular exchanges between two or more mutual funds managed or offered by
the Manager. These exchanges are subject to the exchange requirements
discussed below. |
Credit:
U.S.
Bancorp Fund Services, LLC
Account
#112-952-137
Further
Credit:
(name
and share class of fund to be purchased)
(shareholder
registration)
(shareholder
account number) |
● |
Directly to a bank account for which you have
previously provided information to us in writing on your account
application or subsequent form. Redemption proceeds can be wired or funds
may be sent via electronic funds transfer through the Automated Clearing
House (ACH) network. Wires are subject to a $15 fee. There is no charge to
have proceeds sent via the ACH system and Funds are generally available in
your bank account two to three business days after we receive your
request; or |
● |
By check to your address of record, provided
there has not been an address change in the last 30 calendar
days. |
● |
Directly to a bank account for which you have
previously provided information to us in writing on your account
application or subsequent form. Funds are generally available in your bank
account two to three business days after we receive your request;
or |
● |
By check to your address of record, provided
there has not been an address change in the last 30 calendar
days. |
● |
Domestic Exchange Traded Equity Securities —
Market quotations are generally available and reliable for domestic
exchange-traded equity securities. If the prices provided by the pricing
service and independent quoted prices are unreliable, the Valuation
Committee will fair value the security using the
Procedures. |
● |
Foreign Equity Securities — If market
quotations are available and reliable for foreign exchange-traded equity
securities, the securities will be valued at the market quotations.
Because trading hours for certain foreign securities end before the close
of the NYSE, closing market quotations may become unreliable.
Consequently, fair valuation of portfolio securities may occur on a daily
basis. A fund may fair value a security if certain events occur between
the time trading ends on a particular security and the fund’s NAV
calculation. A fund may also fair value a particular security if the
events are significant and make the closing price unreliable. If an
issuer-specific event has occurred that Carillon determines, in its
judgment, is likely to have affected the closing price of a foreign
security, it will price the security at fair value. Carillon also utilizes
a screening process from a pricing vendor to indicate the degree of
certainty, based on historical data, that the closing price in the
principal market where a foreign security trades is not the current market
value as of the close of the NYSE. Securities and other assets quoted in
foreign currencies are valued in U.S. dollars based on exchange rates
provided by a pricing service. The pricing vendor, pricing methodology or
degree of certainty may change from time to time. Fund securities
primarily traded on foreign markets may trade on days that are not
business days of the fund. Because the NAV of a fund’s shares is
determined only on business days of the fund, the value of the portfolio
securities of the fund that invests in foreign securities may change on
days when you will not be able to purchase or redeem shares of the
fund. |
● |
Fixed Income Securities — Government bonds,
corporate bonds, asset-backed bonds, municipal bonds, short-term
securities (investments that have a maturity date of 60 days or less) and
convertible securities, including high yield or junk bonds, normally are
valued on the basis of evaluated prices provided by independent pricing
services. Prices provided by the pricing services may be determined
without exclusive reliance on quoted prices, and may reflect appropriate
factors and methodologies that have been considered by the Board, such as
institution-size trading in similar groups of securities, developments
related to special securities, dividend rate, maturity and other market
data. If the prices provided by the pricing service and independent quoted
prices are unavailable or unreliable, the Valuation Committee will fair
value the security using the Procedures. |
● |
Futures and Options — Futures and options are
valued on the basis of market quotations, if available and reliable. If
prices provided by independent pricing services and independent quoted
prices are unavailable or unreliable, the Valuation Committee will fair
value the security using the Procedures. |
● |
Investment Companies and ETFs — Investments
in other investment companies are valued at their reported NAV. The
prospectuses for these companies explain the circumstances under which
these companies will use fair value pricing and the effect of the fair
value pricing. In addition, investments in ETFs are valued on the basis of
market quotations, if available and reliable. If the prices provided by
independent pricing services and independent quoted prices are unavailable
or unreliable, the Valuation Committee will fair value the security using
the Procedures. |
Type of
transactions |
Federal income tax
status |
Income dividends |
Ordinary income; all or
part may be eligible for 15%/20% maximum rates for non-corporate
shareholders |
Net short-term capital
gain* and foreign currency gain distributions |
Ordinary income |
Net capital gain**
distributions |
Long-term capital gains;
eligible for 15%/20% maximum rates for non-corporate
shareholders |
Redemptions
or exchanges of fund shares owned for more than one year |
Long-term
capital gains or losses (rates noted above) |
Redemptions
or exchanges of fund shares owned for one year or less |
Gains
are taxed at the same rate as ordinary income; losses are subject to
special rules |
Fund |
Class |
Symbol |
CUSIP |
Fund
Code |
Carillon
ClariVest Capital Appreciation Fund |
A |
HRCPX |
14214L106 |
3850 |
C |
HRCCX |
14214L205 |
3851 | |
I |
HRCIX |
14214L304 |
3852 | |
Y |
HRCYX |
14214L700 |
4175 | |
R-3 |
HRCLX |
14214L403 |
3853 | |
R-5 |
HRCMX |
14214L502 |
3854 | |
R-6 |
HRCUX |
14214L601 |
3855 | |
Carillon Clarivest
International Stock Fund |
A |
EISAX |
14214L825 |
3946 |
C |
EISDX |
14214L817 |
3947 | |
I |
EISIX |
14214L791 |
3948 | |
Y |
EISYX |
14214L759 |
4177 | |
R-3 |
EISRX |
14214L783 |
3949 | |
R-5 |
EISSX |
14214L775 |
3950 | |
R-6 |
EISVX |
14214L767 |
3951 | |
Carillon Cougar Tactical
Allocation Fund |
A |
ETAFX |
14214L353 |
3952 |
C |
ETDFX |
14214L346 |
3953 | |
I |
ETIFX |
14214L338 |
3954 | |
Y |
ETYFX |
14214L288 |
4183 | |
R-3 |
ETRFX |
14214L320 |
3955 | |
R-5 |
ETSFX |
14214L312 |
3956 | |
R-6 |
ETUFX |
14214L296 |
3970 | |
Carillon
Eagle Growth & Income Fund |
A |
HRCVX |
14214L809 |
3868 |
C |
HIGCX |
14214L882 |
3869 | |
I |
HIGJX |
14214L874 |
3870 | |
Y |
HIGYX |
14214L833 |
4176 | |
R-3 |
HIGRX |
14214L866 |
3871 | |
R-5 |
HIGSX |
14214L858 |
3872 | |
R-6 |
HIGUX |
14214L841 |
3873 | |
Carillon
Eagle Mid Cap Growth Fund |
A |
HAGAX |
14214L668 |
3904 |
C |
HAGCX |
14214L650 |
3905 | |
I |
HAGIX |
14214L643 |
3906 | |
Y |
HRAYX |
14214L593 |
4179 | |
R-3 |
HAREX |
14214L635 |
3907 | |
R-5 |
HARSX |
14214L627 |
3908 | |
R-6 |
HRAUX |
14214L619 |
3909 | |
Carillon
Eagle Small Cap Growth Fund |
A |
HRSCX |
14214L510 |
3931 |
C |
HSCCX |
14214L494 |
3932 | |
I |
HSIIX |
14214L486 |
3933 | |
Y |
HSRYX |
14214L445 |
4181 | |
R-3 |
HSRRX |
14214L478 |
3934 | |
R-5 |
HSRSX |
14214L460 |
3935 | |
R-6 |
HSRUX |
14214L452 |
3936 | |
Carillon Scout
International Fund |
A |
CSIGX |
14214L197 |
4130 |
C |
CSIHX |
14214L189 |
4131 | |
I |
UMBWX |
14214L171 |
4060 | |
Y |
CSIZX |
14214L130 |
4135 | |
R-3 |
CSIQX |
14214L163 |
4132 | |
R-5 |
CSIUX |
14214L155 |
4133 | |
R-6 |
CSIWX |
14214L148 |
4134 | |
Carillon Scout Mid Cap
Fund |
A |
CSMEX |
14214M807 |
4142 |
C |
CSMFX |
14214M880 |
4143 | |
I |
UMBMX |
14214M872 |
4064 | |
Y |
CSMZX |
14214M831 |
4147 | |
R-3 |
CSMRX |
14214M864 |
4144 | |
R-5 |
CSMSX |
14214M856 |
4145 | |
R-6 |
CSMUX |
14214M849 |
4146 |
Fund |
Class |
Symbol |
CUSIP |
Fund
Code |
Carillon Scout Small Cap
Fund |
A |
CSSAX |
14214M823 |
4148 |
C |
CSSJX |
14214M815 |
4149 | |
I |
UMBHX |
14214M799 |
4065 | |
Y |
CSSWX |
14214M757 |
4153 | |
R-3 |
CSSQX |
14214M781 |
4150 | |
R-5 |
CSSSX |
14214M773 |
4151 | |
R-6 |
CSSVX |
14214M765 |
4152 | |
Carillon Reams Core Bond
Fund |
A |
CRCBX |
14214L270 |
4160 |
C |
CRCDX |
14214L262 |
4161 | |
I |
SCCIX |
14214L254 |
4067 | |
Y |
SCCYX |
14214L213 |
4068 | |
R-3 |
CRCQX |
14214L247 |
4162 | |
R-5 |
CRCSX |
14214L239 |
4163 | |
R-6 |
CRCUX |
14214L221 |
4164 | |
Carillon Reams Core Plus
Bond Fund |
A |
SCPDX |
14214M666 |
4165 |
C |
SCPEX |
14214M658 |
4166 | |
I |
SCPZX |
14214M641 |
4069 | |
Y |
SCPYX |
14214M591 |
4070 | |
R-3 |
SCPUX |
14214M633 |
4167 | |
R-5 |
SCPVX |
14214M625 |
4168 | |
R-6 |
SCPWX |
14214M617 |
4169 | |
Carillon Reams
Unconstrained Bond Fund |
A |
SUBDX |
14214M740 |
4170 |
C |
SUBEX |
14214M732 |
4171 | |
I |
SUBFX |
14214M724 |
4071 | |
Y |
SUBYX |
14214M674 |
4072 | |
R-3 |
SUBRX |
14214M716 |
4172 | |
R-5 |
SUBSX |
14214M690 |
4173 | |
R-6 |
SUBTX |
14214M682 |
4174 |
PROSPECTUS | 3. 1. 2019
The financial highlights table is intended to help you understand the performance of each class of fund shares for the periods indicated. Certain information reflects financial results for a single Class A, Class C, Class Y, Class I, Class R-3, Class R-5 or Class R-6 share. Based upon the commencement of operations for some of the funds and/or share classes, there may be less than five years’ worth of financial information available. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the funds (assuming reinvestment of all dividends and other distributions). This table is a part of the Funds’ financial statements, which are included in the annual report and semi-annual report for Carillon Series Trust, and are incorporated by reference into the Statement of Additional Information (available on our website and upon request). The financial statements in the annual report were audited by PricewaterhouseCoopers LLP, (“PwC”) an independent registered public accounting firm, whose report is included in the Funds’ annual report.
With respect to each of the Carillon Scout International Fund, Carillon Scout Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund (“Carillon Scout Funds”), the financial highlights of the fund through November 20, 2018 represent the financial history of a corresponding series of the Scout Funds, which was acquired by the fund in a reorganization on November 20, 2018. The financial statements for the Carillon Scout Funds for the period ended June 30, 2018 and earlier were audited by the Scout Funds’ independent registered public accounting firm.
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||
Fiscal periods | Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | |||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | |||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||
Carillon ClariVest Capital Appreciation Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $43.14 | $0.07 | $2.40 | $2.47 | $— | $(2.70 | ) | $— | $(2.70 | ) | $42.91 | 1.02 | 1.12 | 0.15 | 45 | 5.83 | $177 | |||||||||||
11/01/16 | 10/31/17 | 35.05 | 0.02 | 10.24 | 10.26 | (0.03 | ) | (2.14 | ) | — | (2.17 | ) | 43.14 | 1.20 | 1.20 | 0.07 | 33 | 30.84 | 164 | ||||||||||
11/01/15 | 10/31/16 | 40.32 | 0.08 | (0.09 | ) | (0.01 | ) | (0.01 | ) | (5.25 | ) | — | (5.26 | ) | 35.05 | 1.23 | 1.23 | 0.22 | 35 | 0.30 | 145 | ||||||||
11/01/14 | 10/31/15 | 42.02 | 0.09 | 3.80 | 3.89 | — | (5.59 | ) | — | (5.59 | ) | 40.32 | 1.19 | 1.19 | 0.22 | 42 | 10.29 | 168 | |||||||||||
11/01/13 | 10/31/14 | 39.59 | 0.01 | 6.64 | 6.65 | — | (4.22 | ) | — | (4.22 | ) | 42.02 | 1.23 | 1.23 | 0.02 | 33 | 18.34 | 157 | |||||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 32.23 | (0.17 | ) | 1.76 | 1.59 | — | (2.70 | ) | — | (2.70 | ) | 31.12 | 1.80 | 1.90 | (0.53 | ) | 45 | 5.02 | 20 | |||||||||
11/01/16 | 10/31/17 | 26.88 | (0.20 | ) | 7.69 | 7.49 | — | (2.14 | ) | — | (2.14 | ) | 32.23 | 1.97 | 1.97 | (0.70 | ) | 33 | 29.83 | 63 | |||||||||
11/01/15 | 10/31/16 | 32.37 | (0.15 | ) | (0.09 | ) | (0.24 | ) | — | (5.25 | ) | — | (5.25 | ) | 26.88 | 2.00 | 2.00 | (0.55 | ) | 35 | (0.45 | ) | 62 | ||||||
11/01/14 | 10/31/15 | 35.05 | (0.17 | ) | 3.08 | 2.91 | — | (5.59 | ) | — | (5.59 | ) | 32.37 | 1.96 | 1.96 | (0.54 | ) | 42 | 9.42 | 69 | |||||||||
11/01/13 | 10/31/14 | 33.93 | (0.24 | ) | 5.58 | 5.34 | — | (4.22 | ) | — | (4.22 | ) | 35.05 | 1.97 | 1.97 | (0.73 | ) | 33 | 17.45 | 68 | |||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 45.13 | 0.21 | 2.51 | 2.72 | (0.06 | ) | (2.70 | ) | — | (2.76 | ) | 45.09 | 0.72 | 0.88 | 0.46 | 45 | 6.15 | 203 | ||||||||||
11/01/16 | 10/31/17 | 36.55 | 0.16 | 10.68 | 10.84 | (0.12 | ) | (2.14 | ) | — | (2.26 | ) | 45.13 | 0.88 | 0.88 | 0.39 | 33 | 31.26 | 119 | ||||||||||
11/01/15 | 10/31/16 | 41.83 | 0.19 | (0.09 | ) | 0.10 | (0.13 | ) | (5.25 | ) | — | (5.38 | ) | 36.55 | 0.92 | 0.92 | 0.52 | 35 | 0.61 | 124 | |||||||||
11/01/14 | 10/31/15 | 43.34 | 0.21 | 3.93 | 4.14 | (0.06 | ) | (5.59 | ) | — | (5.65 | ) | 41.83 | 0.90 | 0.90 | 0.51 | 42 | 10.59 | 103 | ||||||||||
11/01/13 | 10/31/14 | 40.60 | 0.13 | 6.83 | 6.96 | — | (4.22 | ) | — | (4.22 | ) | 43.34 | 0.94 | 0.93 | 0.32 | 33 | 18.68 | 88 | |||||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 41.60 | (0.04 | ) | 2.31 | 2.27 | — | (2.70 | ) | — | (2.70 | ) | 41.17 | 1.29 | 1.47 | (0.11 | ) | 45 | 5.56 | 1 | |||||||||
11/01/16 | 10/31/17 | 33.95 | (0.10 | ) | 9.89 | 9.79 | — | (2.14 | ) | — | (2.14 | ) | 41.60 | 1.51 | 1.56 | (0.28 | ) | 33 | 30.43 | 1 | |||||||||
11/01/15 | 10/31/16 | 39.33 | (0.04 | ) | (0.09 | ) | (0.13 | ) | — | (5.25 | ) | — | (5.25 | ) | 33.95 | 1.57 | 1.57 | (0.12 | ) | 35 | (0.04 | ) | 1 | ||||||
11/01/14 | 10/31/15 | 41.24 | (0.04 | ) | 3.72 | 3.68 | — | (5.59 | ) | — | (5.59 | ) | 39.33 | 1.51 | 1.51 | (0.10 | ) | 42 | 9.94 | 1 | |||||||||
11/01/13 | 10/31/14 | 39.05 | (0.11 | ) | 6.52 | 6.41 | — | (4.22 | ) | — | (4.22 | ) | 41.24 | 1.56 | 1.56 | (0.30 | ) | 33 | 17.94 | 1 | |||||||||
Class R-5* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 44.97 | 0.18 | 2.53 | 2.71 | (0.01 | ) | (2.70 | ) | — | (2.71 | ) | 44.97 | 0.72 | 0.86 | 0.38 | 45 | 6.14 | 7 | ||||||||||
11/01/16 | 10/31/17 | 36.44 | 0.17 | 10.63 | 10.80 | (0.13 | ) | (2.14 | ) | — | (2.27 | ) | 44.97 | 0.89 | 0.89 | 0.45 | 33 | 31.26 | 3 | ||||||||||
11/01/15 | 10/31/16 | 41.70 | 0.20 | (0.08 | ) | 0.12 | (0.13 | ) | (5.25 | ) | — | (5.38 | ) | 36.44 | 0.90 | 0.90 | 0.55 | 35 | 0.64 | 7 | |||||||||
11/01/14 | 10/31/15 | 43.20 | 0.18 | 3.93 | 4.11 | (0.02 | ) | (5.59 | ) | — | (5.61 | ) | 41.70 | 0.95 | 0.86 | 0.46 | 42 | 10.54 | 8 | ||||||||||
11/01/13 | 10/31/14 | 40.50 | 0.10 | 6.82 | 6.92 | — | (4.22 | ) | — | (4.22 | ) | 43.20 | 0.95 | 0.94 | 0.25 | 33 | 18.62 | 5 | |||||||||||
Class R-6* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 44.82 | 0.26 | 2.48 | 2.74 | (0.09 | ) | (2.70 | ) | — | (2.79 | ) | 44.77 | 0.63 | 0.79 | 0.55 | 45 | 6.23 | 44 | ||||||||||
11/01/16 | 10/31/17 | 36.35 | 0.14 | 10.66 | 10.80 | (0.19 | ) | (2.14 | ) | — | (2.33 | ) | 44.82 | 0.82 | 0.82 | 0.34 | 33 | 31.36 | 41 | ||||||||||
11/01/15 | 10/31/16 | 41.66 | 0.22 | (0.09 | ) | 0.13 | (0.19 | ) | (5.25 | ) | — | (5.44 | ) | 36.35 | 0.85 | 1.49 | 0.60 | 35 | 0.68 | 0 | |||||||||
07/31/15 | 10/31/15 | 41.71 | 0.06 | (0.11 | ) | (0.05 | ) | — | — | — | — | 41.66 | 0.82 | 0.82 | 0.57 | 42 | (0.12 | ) | 0 | ||||||||||
Class Y* | |||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 45.64 | 0.08 | 2.00 | 2.08 | (0.12 | ) | (2.70 | ) | — | (2.82 | ) | 44.90 | 1.01 | 1.55 | 0.18 | 45 | 4.67 | 0 | ||||||||||
Carillon ClariVest International Stock Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 18.71 | 0.28 | (1.86 | ) | (1.58 | ) | (0.21 | ) | — | — | (0.21 | ) | 16.92 | 1.45 | 2.85 | 1.50 | 49 | (8.56 | ) | 5 | ||||||||
11/01/16 | 10/31/17 | 15.02 | 0.17 | 3.71 | 3.88 | (0.19 | ) | — | — | (0.19 | ) | 18.71 | 1.54 | 3.72 | 1.03 | 80 | 26.15 | 4 | |||||||||||
11/01/15 | 10/31/16 | 16.02 | 0.21 | (1.14 | ) | (0.93 | ) | (0.07 | ) | — | — | (0.07 | ) | 15.02 | 1.67 | 3.45 | 1.40 | 100 | (5.84 | ) | 4 | ||||||||
11/01/14 | 10/31/15 | 16.54 | 0.14 | 0.40 | 0.54 | (0.39 | ) | (0.67 | ) | — | (1.06 | ) | 16.02 | 1.58 | 4.04 | 0.88 | 86 | 3.63 | 10 | ||||||||||
11/01/13 | 10/31/14 | 16.48 | 0.42 | (0.13 | ) | 0.29 | (0.14 | ) | (0.09 | ) | — | (0.23 | ) | 16.54 | 1.57 | 5.96 | 2.49 | 96 | 1.73 | 4 |
102 | carillontower.com
Financial Highlights
PROSPECTUS | 3. 1. 2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||
Fiscal periods | Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | |||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | |||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||
Carillon ClariVest International Stock Fund (cont’d) | |||||||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $18.32 | $0.04 | $(1.73 | ) | $(1.69 | ) | $(0.10 | ) | $— | $— | $(0.10 | ) | $16.53 | 2.20 | 3.68 | 0.21 | 49 | (9.28 | ) | $3 | ||||||||
11/01/16 | 10/31/17 | 14.79 | 0.04 | 3.65 | 3.69 | (0.16 | ) | — | — | (0.16 | ) | 18.32 | 2.29 | 4.50 | 0.27 | 80 | 25.21 | 5 | |||||||||||
11/01/15 | 10/31/16 | 15.83 | 0.08 | (1.12 | ) | (1.04 | ) | — | — | — | — | 14.79 | 2.47 | 4.31 | 0.52 | 100 | (6.57 | ) | 5 | ||||||||||
11/01/14 | 10/31/15 | 16.38 | 0.03 | 0.38 | 0.41 | (0.29 | ) | (0.67 | ) | — | (0.96 | ) | 15.83 | 2.35 | 4.95 | 0.18 | 86 | 2.80 | 5 | ||||||||||
11/01/13 | 10/31/14 | 16.38 | 0.30 | (0.14 | ) | 0.16 | (0.07 | ) | (0.09 | ) | — | (0.16 | ) | 16.38 | 2.35 | 6.68 | 1.78 | 96 | 0.94 | 4 | |||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 18.70 | 0.30 | (1.82 | ) | (1.52 | ) | (0.26 | ) | — | — | (0.26 | ) | 16.92 | 1.15 | 2.59 | 1.60 | 49 | (8.29 | ) | 9 | ||||||||
11/01/16 | 10/31/17 | 15.11 | 0.23 | 3.71 | 3.94 | (0.35 | ) | — | — | (0.35 | ) | 18.70 | 1.15 | 3.28 | 1.40 | 80 | 26.63 | 8 | |||||||||||
11/01/15 | 10/31/16 | 16.08 | 0.30 | (1.15 | ) | (0.85 | ) | (0.12 | ) | — | — | (0.12 | ) | 15.11 | 1.15 | 3.12 | 2.03 | 100 | (5.31 | ) | 6 | ||||||||
11/01/14 | 10/31/15 | 16.62 | 0.21 | 0.39 | 0.60 | (0.47 | ) | (0.67 | ) | — | (1.14 | ) | 16.08 | 1.15 | 3.82 | 1.31 | 86 | 4.04 | 2 | ||||||||||
11/01/13 | 10/31/14 | 16.52 | 0.53 | (0.17 | ) | 0.36 | (0.17 | ) | (0.09 | ) | — | (0.26 | ) | 16.62 | 1.15 | 5.43 | 3.16 | 96 | 2.18 | 1 | |||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 18.53 | 0.19 | (1.80 | ) | (1.61 | ) | (0.18 | ) | — | — | (0.18 | ) | 16.74 | 1.70 | 3.17 | 1.01 | 49 | (8.80 | ) | 1 | ||||||||
11/01/16 | 10/31/17 | 15.04 | 0.15 | 3.67 | 3.82 | (0.33 | ) | — | — | (0.33 | ) | 18.53 | 1.71 | 3.98 | 0.89 | 80 | 25.91 | 1 | |||||||||||
11/01/15 | 10/31/16 | 15.99 | 0.12 | (1.05 | ) | (0.93 | ) | (0.02 | ) | — | — | (0.02 | ) | 15.04 | 1.75 | 3.86 | 0.77 | 100 | (5.84 | ) | 1 | ||||||||
11/01/14 | 10/31/15 | 16.53 | 0.13 | 0.37 | 0.50 | (0.37 | ) | (0.67 | ) | — | (1.04 | ) | 15.99 | 1.74 | 4.38 | 0.79 | 86 | 3.37 | 0 | ||||||||||
11/01/13 | 10/31/14 | 16.45 | 0.40 | (0.13 | ) | 0.27 | (0.10 | ) | (0.09 | ) | — | (0.19 | ) | 16.53 | 1.73 | 6.22 | 2.37 | 96 | 1.64 | 0 | |||||||||
Class R-5* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 18.69 | 0.29 | (1.81 | ) | (1.52 | ) | (0.23 | ) | — | — | (0.23 | ) | 16.94 | 1.15 | 4.65 | 1.56 | 49 | (8.26 | ) | 0 | ||||||||
11/01/16 | 10/31/17 | 15.11 | 0.08 | 3.85 | 3.93 | (0.35 | ) | — | — | (0.35 | ) | 18.69 | 1.15 | 3.69 | 0.49 | 80 | 26.56 | 0 | |||||||||||
11/01/15 | 10/31/16 | 16.09 | 0.27 | (1.13 | ) | (0.86 | ) | (0.12 | ) | — | — | (0.12 | ) | 15.11 | 1.15 | 3.22 | 1.79 | 100 | (5.36 | ) | 0 | ||||||||
11/01/14 | 10/31/15 | 16.63 | 0.25 | 0.35 | 0.60 | (0.47 | ) | (0.67 | ) | — | (1.14 | ) | 16.09 | 1.15 | 3.59 | 1.58 | 86 | 4.01 | 0 | ||||||||||
11/01/13 | 10/31/14 | 16.52 | 0.50 | (0.14 | ) | 0.36 | (0.16 | ) | (0.09 | ) | — | (0.25 | ) | 16.63 | 1.15 | 5.67 | 2.96 | 96 | 2.18 | 0 | |||||||||
Class R-6* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 18.75 | 0.29 | (1.80 | ) | (1.51 | ) | (0.27 | ) | — | — | (0.27 | ) | 16.97 | 1.05 | 2.81 | 1.55 | 49 | (8.21 | ) | 0 | ||||||||
11/01/16 | 10/31/17 | 15.14 | 0.26 | 3.71 | 3.97 | (0.36 | ) | — | — | (0.36 | ) | 18.75 | 1.05 | 3.78 | 1.55 | 80 | 26.82 | 0 | |||||||||||
11/01/15 | 10/31/16 | 16.11 | 0.27 | (1.11 | ) | (0.84 | ) | (0.13 | ) | — | — | (0.13 | ) | 15.14 | 1.05 | 3.73 | 1.80 | 100 | (5.26 | ) | 0 | ||||||||
11/01/14 | 10/31/15 | 16.65 | 0.24 | 0.37 | 0.61 | (0.48 | ) | (0.67 | ) | — | (1.15 | ) | 16.11 | 1.05 | 3.80 | 1.48 | 86 | 4.11 | 0 | ||||||||||
11/01/13 | 10/31/14 | 16.53 | 0.51 | (0.13 | ) | 0.38 | (0.17 | ) | (0.09 | ) | — | (0.26 | ) | 16.65 | 1.05 | 5.67 | 3.05 | 96 | 2.31 | 0 | |||||||||
Class Y* | |||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 18.54 | 0.21 | (1.62 | ) | (1.41 | ) | (0.27 | ) | — | — | (0.27 | ) | 16.86 | 1.45 | 3.59 | 1.20 | 49 | (7.77 | ) | 0 | ||||||||
Carillon Cougar Tactical Allocation Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 16.05 | 0.13 | (0.05 | ) | 0.08 | (0.11 | ) | (0.29 | ) | — | (0.40 | ) | 15.73 | 1.17 | 2.62 | 0.79 | 88 | 0.44 | 1 | |||||||||
11/01/16 | 10/31/17 | 14.59 | 0.12 | 1.40 | 1.52 | (0.04 | ) | (0.02 | ) | — | (0.06 | ) | 16.05 | 1.17 | 3.55 | 0.79 | 152 | 10.42 | 2 | ||||||||||
12/31/15 | 10/31/16 | 14.29 | 0.06 | 0.24 | 0.30 | — | — | — | — | 14.59 | 1.17 | 17.33 | 0.47 | 66 | 2.10 | 2 | |||||||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 15.87 | — | (d) | (0.03
|
)
|
(0.03 | ) | (0.03 | ) | (0.29 | ) | — | (0.32 | ) | 15.52 | 1.92 | 3.40 | 0.02 | 88 | (0.29 | ) | 2 | ||||||
11/01/16 | 10/31/17 | 14.50 | 0.01 | 1.38 | 1.39 | — | (0.02 | ) | — | (0.02 | ) | 15.87 | 1.93 | 4.11 | 0.05 | 152 | 9.58 | 2 | |||||||||||
12/31/15 | 10/31/16 | 14.29 | (0.04 | ) | 0.25 | 0.21 | — | — | — | — | 14.50 | 1.97 | 10.40 | (0.31 | ) | 66 | 1.47 | 1 | |||||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 16.09 | 0.17 | (0.04 | ) | 0.13 | (0.17 | ) | (0.29 | ) | — | (0.46 | ) | 15.76 | 0.87 | 2.42 | 1.03 | 88 | 0.74 | 20 | |||||||||
11/01/16 | 10/31/17 | 14.62 | 0.17 | 1.40 | 1.57 | (0.08 | ) | (0.02 | ) | — | (0.10 | ) | 16.09 | 0.87 | 3.00 | 1.09 | 152 | 10.79 | 14 | ||||||||||
12/31/15 | 10/31/16 | 14.29 | 0.10 | 0.23 | 0.33 | — | — | — | — | 14.62 | 0.87 | 8.81 | 0.77 | 66 | 2.31 | 5 | |||||||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 16.03 | 0.09 | (0.04 | ) | 0.05 | (0.09 | ) | (0.29 | ) | — | (0.38 | ) | 15.70 | 1.42 | 3.49 | 0.52 | 88 | 0.21 | 0 | |||||||||
11/01/16 | 10/31/17 | 14.57 | 0.09 | 1.39 | 1.48 | — | (0.02 | ) | — | (0.02 | ) | 16.03 | 1.40 | 3.62 | 0.57 | 152 | 10.15 | 0 | |||||||||||
12/31/15 | 10/31/16 | 14.29 | 0.03 | 0.25 | 0.28 | — | — | — | — | 14.57 | 1.37 | 22.76 | 0.21 | 66 | 1.96 | 0 | |||||||||||||
Class R-5* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 16.09 | 0.18 | (0.05 | ) | 0.13 | (0.16 | ) | (0.29 | ) | — | (0.45 | ) | 15.77 | 0.87 | 2.60 | 1.07 | 88 | 0.76 | 0 | |||||||||
11/01/16 | 10/31/17 | 14.63 | 0.17 | 1.39 | 1.56 | (0.08 | ) | (0.02 | ) | — | (0.10 | ) | 16.09 | 0.87 | 3.18 | 1.15 | 152 | 10.71 | 0 | ||||||||||
12/31/15 | 10/31/16 | 14.29 | 0.08 | 0.26 | 0.34 | — | — | — | — | 14.63 | 0.87 | 21.86 | 0.69 | 66 | 2.38 | 0 |
carillontower.com | 103
Financial Highlights
PROSPECTUS | 3. 1. 2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||
Fiscal periods | Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | |||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | |||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||
Carillon Cougar Tactical Allocation Fund (cont’d) | |||||||||||||||||||||||||||||
Class R-6* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $16.12 | $0.19 | $(0.05 | ) | $0.14 | $(0.18 | ) | $(0.29 | ) | $— | $(0.47 | ) | $15.79 | 0.77 | 2.92 | 1.17 | 88 | 0.82 | $0 | |||||||||
11/01/16 | 10/31/17 | 14.64 | 0.18 | 1.41 | 1.59 | (0.09 | ) | (0.02 | ) | — | (0.11 | ) | 16.12 | 0.77 | 3.04 | 1.21 | 152 | 10.88 | 0 | ||||||||||
12/31/15 | 10/31/16 | 14.29 | 0.10 | 0.25 | 0.35 | — | — | — | — | 14.64 | 0.77 | 22.16 | 0.82 | 66 | 2.45 | 0 | |||||||||||||
Class Y* | |||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 16.11 | 0.13 | (0.06 | ) | 0.07 | (0.18 | ) | (0.29 | ) | — | (0.47 | ) | 15.71 | 1.17 | 3.32 | 0.82 | 88 | 0.34 | 0 | |||||||||
Carillon Eagle Growth & Income Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 20.39 | 0.40 | 1.57 | 1.97 | (0.42 | ) | (0.50 | ) | — | (0.92 | ) | 21.44 | 0.98 | 0.98 | 1.91 | 10 | 9.76 | 147 | ||||||||||
11/01/16 | 10/31/17 | 18.39 | 0.34 | 2.93 | 3.27 | (0.33 | ) | (0.94 | ) | — | (1.27 | ) | 20.39 | 1.03 | 1.03 | 1.74 | 10 | 18.56 | 147 | ||||||||||
11/01/15 | 10/31/16 | 17.52 | 0.34 | 0.85 | 1.19 | (0.32 | ) | — | — | (0.32 | ) | 18.39 | 1.06 | 1.06 | 1.91 | 15 | 6.87 | 152 | |||||||||||
11/01/14 | 10/31/15 | 18.27 | 0.36 | (0.64 | ) | (0.28 | ) | (0.32 | ) | (0.13 | ) | (0.02 | ) | (0.47 | ) | 17.52 | 1.02 | 1.02 | 1.99 | 25 | (1.55 | ) | 180 | ||||||
11/01/13 | 10/31/14 | 16.68 | 0.30 | 1.91 | 2.21 | (0.28 | ) | (0.34 | ) | — | (0.62 | ) | 18.27 | 1.02 | 1.02 | 1.71 | 10 | 13.52 | 223 | ||||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 19.54 | 0.24 | 1.49 | 1.73 | (0.25 | ) | (0.50 | ) | — | (0.75 | ) | 20.52 | 1.73 | 1.73 | 1.16 | 10 | 8.94 | 130 | ||||||||||
11/01/16 | 10/31/17 | 17.68 | 0.18 | 2.81 | 2.99 | (0.19 | ) | (0.94 | ) | — | (1.13 | ) | 19.54 | 1.79 | 1.79 | 0.98 | 10 | 17.62 | 169 | ||||||||||
11/01/15 | 10/31/16 | 16.86 | 0.20 | 0.82 | 1.02 | (0.20 | ) | — | — | (0.20 | ) | 17.68 | 1.82 | 1.82 | 1.14 | 15 | 6.07 | 185 | |||||||||||
11/01/14 | 10/31/15 | 17.60 | 0.21 | (0.60 | ) | (0.39 | ) | (0.20 | ) | (0.13 | ) | (0.02 | ) | (0.35 | ) | 16.86 | 1.79 | 1.79 | 1.21 | 25 | (2.30 | ) | 197 | ||||||
11/01/13 | 10/31/14 | 16.10 | 0.16 | 1.83 | 1.99 | (0.15 | ) | (0.34 | ) | — | (0.49 | ) | 17.60 | 1.79 | 1.79 | 0.92 | 10 | 12.63 | 212 | ||||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 20.34 | 0.46 | 1.56 | 2.02 | (0.47 | ) | (0.50 | ) | — | (0.97 | ) | 21.39 | 0.72 | 0.72 | 2.16 | 10 | 10.06 | 272 | ||||||||||
11/01/16 | 10/31/17 | 18.35 | 0.39 | 2.93 | 3.32 | (0.39 | ) | (0.94 | ) | — | (1.33 | ) | 20.34 | 0.75 | 0.75 | 2.00 | 10 | 18.90 | 246 | ||||||||||
11/01/15 | 10/31/16 | 17.48 | 0.39 | 0.85 | 1.24 | (0.37 | ) | — | — | (0.37 | ) | 18.35 | 0.79 | 0.79 | 2.17 | 15 | 7.18 | 179 | |||||||||||
11/01/14 | 10/31/15 | 18.24 | 0.40 | (0.64 | ) | (0.24 | ) | (0.37 | ) | (0.13 | ) | (0.02 | ) | (0.52 | ) | 17.48 | 0.76 | 0.76 | 2.23 | 25 | (1.33 | ) | 200 | ||||||
11/01/13 | 10/31/14 | 16.65 | 0.33 | 1.93 | 2.26 | (0.33 | ) | (0.34 | ) | — | (0.67 | ) | 18.24 | 0.77 | 0.77 | 1.89 | 10 | 13.86 | 207 | ||||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 20.30 | 0.33 | 1.56 | 1.89 | (0.34 | ) | (0.50 | ) | — | (0.84 | ) | 21.35 | 1.31 | 1.31 | 1.59 | 10 | 9.40 | 2 | ||||||||||
11/01/16 | 10/31/17 | 18.32 | 0.28 | 2.91 | 3.19 | (0.27 | ) | (0.94 | ) | — | (1.21 | ) | 20.30 | 1.34 | 1.34 | 1.44 | 10 | 18.15 | 2 | ||||||||||
11/01/15 | 10/31/16 | 17.44 | 0.28 | 0.87 | 1.15 | (0.27 | ) | — | — | (0.27 | ) | 18.32 | 1.37 | 1.37 | 1.60 | 15 | 6.61 | 3 | |||||||||||
11/01/14 | 10/31/15 | 18.19 | 0.28 | (0.63 | ) | (0.35 | ) | (0.25 | ) | (0.13 | ) | (0.02 | ) | (0.40 | ) | 17.44 | 1.44 | 1.44 | 1.57 | 25 | (1.99 | ) | 3 | ||||||
11/01/13 | 10/31/14 | 16.61 | 0.23 | 1.90 | 2.13 | (0.21 | ) | (0.34 | ) | — | (0.55 | ) | 18.19 | 1.40 | 1.40 | 1.33 | 10 | 13.08 | 4 | ||||||||||
Class R-5* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 20.36 | 0.45 | 1.56 | 2.01 | (0.46 | ) | (0.50 | ) | — | (0.96 | ) | 21.41 | 0.78 | 0.78 | 2.10 | 10 | 9.99 | 0 | ||||||||||
11/01/16 | 10/31/17 | 18.38 | 0.38 | 2.93 | 3.31 | (0.39 | ) | (0.94 | ) | — | (1.33 | ) | 20.36 | 0.76 | 0.76 | 1.97 | 10 | 18.82 | 0 | ||||||||||
11/01/15 | 10/31/16 | 17.50 | 0.39 | 0.87 | 1.26 | (0.38 | ) | — | — | (0.38 | ) | 18.38 | 0.75 | 0.75 | 2.21 | 15 | 7.27 | 0 | |||||||||||
11/01/14 | 10/31/15 | 18.21 | 0.44 | (0.76 | ) | (0.32 | ) | (0.24 | ) | (0.13 | ) | (0.02 | ) | (0.39 | ) | 17.50 | 0.78 | 0.79 | 2.39 | 25 | (1.82 | ) | 0 | ||||||
11/01/13 | 10/31/14 | 16.63 | 0.34 | 1.90 | 2.24 | (0.32 | ) | (0.34 | ) | — | (0.66 | ) | 18.21 | 0.76 | 0.76 | 1.95 | 10 | 13.80 | 4 | ||||||||||
Class R-6* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 20.30 | 0.47 | 1.56 | 2.03 | (0.49 | ) | (0.50 | ) | — | (0.99 | ) | 21.34 | 0.64 | 0.64 | 2.24 | 10 | 10.12 | 42 | ||||||||||
11/01/16 | 10/31/17 | 18.32 | 0.40 | 2.93 | 3.33 | (0.41 | ) | (0.94 | ) | — | (1.35 | ) | 20.30 | 0.65 | 0.65 | 2.10 | 10 | 18.98 | 40 | ||||||||||
11/01/15 | 10/31/16 | 17.46 | 0.39 | 0.87 | 1.26 | (0.40 | ) | — | — | (0.40 | ) | 18.32 | 0.67 | 0.67 | 2.18 | 15 | 7.30 | 34 | |||||||||||
11/01/14 | 10/31/15 | 18.26 | 0.45 | (0.71 | ) | (0.26 | ) | (0.39 | ) | (0.13 | ) | (0.02 | ) | (0.54 | ) | 17.46 | 0.65 | 0.65 | 2.47 | 25 | (1.46 | ) | 0 | ||||||
11/01/13 | 10/31/14 | 16.67 | 0.35 | 1.92 | 2.27 | (0.34 | ) | (0.34 | ) | — | (0.68 | ) | 18.26 | 0.66 | 0.66 | 2.01 | 10 | 13.94 | 0 | ||||||||||
Class Y* | |||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.48 | 0.28 | 1.49 | 1.77 | (0.40 | ) | (0.50 | ) | — | (0.90 | ) | 21.35 | 1.25 | 1.43 | 1.35 | 10 | 8.74 | 0 | ||||||||||
Carillon Eagle Mid Cap Growth Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 56.41 | (0.28 | ) | 3.06 | 2.78 | — | (3.00 | ) | — | (3.00 | ) | 56.19 | 1.05 | 1.05 | (0.46) | 44 | 4.75 | 688 | ||||||||||
11/01/16 | 10/31/17 | 42.29 | (0.26 | ) | 14.38 | 14.12 | — | — | — | — | 56.41 | 1.12 | 1.12 | (0.53) | 44 | 33.39 | 459 | ||||||||||||
11/01/15 | 10/31/16 | 43.39 | (0.17 | ) | (0.23 | ) | (0.40 | ) | — | (0.70 | ) | — | (0.70 | ) | 42.29 | 1.17 | 1.17 | (0.40) | 34 | (0.87 | ) | 320 | |||||||
11/01/14 | 10/31/15 | 45.68 | (0.26 | ) | 2.26 | 2.00 | — | (4.29 | ) | — | (4.29 | ) | 43.39 | 1.14 | 1.14 | (0.59) | 52 | 4.70 | 354 | ||||||||||
11/01/13 | 10/31/14 | 41.03 | (0.17 | ) | 6.74 | 6.57 | — | (1.92 | ) | — | (1.92 | ) | 45.68 | 1.19 | 1.19 | (0.40) | 60 | 16.58 | 283 |
104 | carillontower.com
Financial Highlights
PROSPECTUS | 3. 1. 2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||
Fiscal periods | Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | |||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | |||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||
Carillon Eagle Mid Cap Growth Fund (cont’d) | |||||||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $45.67 | $(0.55 | ) | $2.49 | $1.94 | $— | $(3.00 | ) | $— | $(3.00 | ) | $44.61 | 1.74 | 1.74 | (1.14 | ) | 44 | 4.00 | $147 | |||||||||
11/01/16 | 10/31/17 | 34.48 | (0.50 | ) | 11.69 | 11.19 | — | — | — | — | 45.67 | 1.84 | 1.84 | (1.24 | ) | 44 | 32.45 | 146 | |||||||||||
11/01/15 | 10/31/16 | 35.76 | (0.38 | ) | (0.20 | ) | (0.58 | ) | — | (0.70 | ) | — | (0.70 | ) | 34.48 | 1.88 | 1.88 | (1.11 | ) | 34 | (1.58 | ) | 112 | ||||||
11/01/14 | 10/31/15 | 38.65 | (0.48 | ) | 1.88 | 1.40 | — | (4.29 | ) | — | (4.29 | ) | 35.76 | 1.87 | 1.88 | (1.32 | ) | 52 | 3.92 | 117 | |||||||||
11/01/13 | 10/31/14 | 35.24 | (0.41 | ) | 5.74 | 5.33 | — | (1.92 | ) | — | (1.92 | ) | 38.65 | 1.89 | 1.89 | (1.12 | ) | 60 | 15.75 | 105 | |||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 59.29 | (0.10 | ) | 3.19 | 3.09 | — | (3.00 | ) | — | (3.00 | ) | 59.38 | 0.75 | 0.75 | (0.16 | ) | 44 | 5.05 | 1,134 | |||||||||
11/01/16 | 10/31/17 | 44.30 | (0.11 | ) | 15.10 | 14.99 | — | (d) | — | — | — | (d) | 59.29 | 0.78 | 0.78 | (0.21 | ) | 44 | 33.84 | 763 | |||||||||
11/01/15 | 10/31/16 | 45.26 | (0.02 | ) | (0.24 | ) | (0.26 | ) | — | (0.70 | ) | — | (0.70 | ) | 44.30 | 0.82 | 0.82 | (0.06 | ) | 34 | (0.52 | ) | 421 | ||||||
11/01/14 | 10/31/15 | 47.33 | (0.13 | ) | 2.35 | 2.22 | — | (4.29 | ) | — | (4.29 | ) | 45.26 | 0.82 | 0.83 | (0.28 | ) | 52 | 5.02 | 358 | |||||||||
11/01/13 | 10/31/14 | 42.31 | (0.05 | ) | 6.99 | 6.94 | — | (1.92 | ) | — | (1.92 | ) | 47.33 | 0.85 | 0.85 | (0.12 | ) | 60 | 16.97 | 210 | |||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 54.88 | (0.42 | ) | 2.96 | 2.54 | — | (3.00 | ) | — | (3.00 | ) | 54.42 | 1.32 | 1.32 | (0.72 | ) | 44 | 4.43 | 35 | |||||||||
11/01/16 | 10/31/17 | 41.25 | (0.39 | ) | 14.02 | 13.63 | — | — | — | — | 54.88 | 1.38 | 1.38 | (0.80 | ) | 44 | 33.04 | 32 | |||||||||||
11/01/15 | 10/31/16 | 42.46 | (0.28 | ) | (0.23 | ) | (0.51 | ) | — | (0.70 | ) | — | (0.70 | ) | 41.25 | 1.46 | 1.46 | (0.69 | ) | 34 | (1.16 | ) | 21 | ||||||
11/01/14 | 10/31/15 | 44.90 | (0.37 | ) | 2.22 | 1.85 | — | (4.29 | ) | — | (4.29 | ) | 42.46 | 1.41 | 1.42 | (0.86 | ) | 52 | 4.42 | 24 | |||||||||
11/01/13 | 10/31/14 | 40.48 | (0.31 | ) | 6.65 | 6.34 | — | (1.92 | ) | — | (1.92 | ) | 44.90 | 1.48 | 1.48 | (0.73 | ) | 60 | 16.23 | 16 | |||||||||
Class R-5* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 59.14 | (0.11 | ) | 3.19 | 3.08 | — | (3.00 | ) | — | (3.00 | ) | 59.22 | 0.75 | 0.75 | (0.18 | ) | 44 | 5.04 | 648 | |||||||||
11/01/16 | 10/31/17 | 44.19 | (0.11 | ) | 15.06 | 14.95 | — | (d) | — | — | — | (d) | 59.14 | 0.79 | 0.79 | (0.22 | ) | 44 | 33.84 | 284 | |||||||||
11/01/15 | 10/31/16 | 45.15 | (0.03 | ) | (0.23 | ) | (0.26 | ) | — | (0.70 | ) | — | (0.70 | ) | 44.19 | 0.83 | 0.83 | (0.06 | ) | 34 | (0.52 | ) | 153 | ||||||
11/01/14 | 10/31/15 | 47.28 | (0.13 | ) | 2.29 | 2.16 | — | (4.29 | ) | — | (4.29 | ) | 45.15 | 0.82 | 0.83 | (0.28 | ) | 52 | 4.89 | 133 | |||||||||
11/01/13 | 10/31/14 | 42.27 | (0.06 | ) | 6.99 | 6.93 | — | (1.92 | ) | — | (1.92 | ) | 47.28 | 0.87 | 0.87 | (0.14 | ) | 60 | 16.96 | 55 | |||||||||
Class R-6* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 59.62 | (0.06 | ) | 3.22 | 3.16 | — | (3.00 | ) | — | (3.00 | ) | 59.78 | 0.66 | 0.66 | (0.09 | ) | 44 | 5.14 | 1,636 | |||||||||
11/01/16 | 10/31/17 | 44.51 | (0.07 | ) | 15.19 | 15.12 | (0.01 | ) | — | — | (0.01 | ) | 59.62 | 0.69 | 0.69 | (0.12 | ) | 44 | 33.97 | 692 | |||||||||
11/01/15 | 10/31/16 | 45.43 | 0.02 | (0.24 | ) | (0.22 | ) | — | (0.70 | ) | — | (0.70 | ) | 44.51 | 0.72 | 0.72 | 0.04 | 34 | (0.43 | ) | 346 | ||||||||
11/01/14 | 10/31/15 | 47.44 | (0.10 | ) | 2.38 | 2.28 | — | (4.29 | ) | — | (4.29 | ) | 45.43 | 0.73 | 0.74 | (0.21 | ) | 52 | 5.15 | 190 | |||||||||
11/01/13 | 10/31/14 | 42.36 | (0.05 | ) | 7.05 | 7.00 | — | (1.92 | ) | — | (1.92 | ) | 47.44 | 0.77 | 0.77 | (0.10 | ) | 60 | 17.10 | 30 | |||||||||
Class Y* | |||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 60.71 | (0.44 | ) | 1.87 | 1.43 | — | (3.00 | ) | — | (3.00 | ) | 59.14 | 1.13 | 1.13 | (0.72 | ) | 44 | 2.18 | 0 | |||||||||
Carillon Eagle Small Cap Growth Fund | |||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 62.31 | (0.40 | ) | 2.07 | 1.67 | — | (4.83 | ) | — | (4.83 | ) | 59.15 | 1.05 | 1.05 | (0.63 | ) | 35 | 2.61 | 544 | |||||||||
11/01/16 | 10/31/17 | 50.48 | (0.27 | ) | 13.72 | 13.45 | — | (1.62 | ) | — | (1.62 | ) | 62.31 | 1.13 | 1.13 | (0.47 | ) | 40 | 27.22 | 640 | |||||||||
11/01/15 | 10/31/16 | 52.98 | (0.33 | ) | 1.29 | 0.96 | — | (3.46 | ) | — | (3.46 | ) | 50.48 | 1.15 | 1.15 | (0.66 | ) | 32 | 2.07 | 848 | |||||||||
11/01/14 | 10/31/15 | 57.57 | (0.33 | ) | 2.22 | 1.89 | — | (6.48 | ) | — | (6.48 | ) | 52.98 | 1.10 | 1.10 | (0.60 | ) | 45 | 3.23 | 711 | |||||||||
11/01/13 | 10/31/14 | 54.33 | (0.34 | ) | 4.27 | 3.93 | — | (0.69 | ) | — | (0.69 | ) | 57.57 | 1.11 | 1.11 | (0.61 | ) | 37 | 7.30 | 759 | |||||||||
Class C* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 47.51 | (0.62 | ) | 1.59 | 0.97 | — | (4.83 | ) | — | (4.83 | ) | 43.65 | 1.75 | 1.75 | (1.31 | ) | 35 | 1.89 | 111 | |||||||||
11/01/16 | 10/31/17 | 39.10 | (0.51 | ) | 10.54 | 10.03 | — | (1.62 | ) | — | (1.62 | ) | 47.51 | 1.82 | 1.82 | (1.17 | ) | 40 | 26.37 | 169 | |||||||||
11/01/15 | 10/31/16 | 42.10 | (0.52 | ) | 0.98 | 0.46 | — | (3.46 | ) | — | (3.46 | ) | 39.10 | 1.85 | 1.85 | (1.36 | ) | 32 | 1.37 | 166 | |||||||||
11/01/14 | 10/31/15 | 47.33 | (0.59 | ) | 1.84 | 1.25 | — | (6.48 | ) | — | (6.48 | ) | 42.10 | 1.82 | 1.82 | (1.32 | ) | 45 | 2.49 | 186 | |||||||||
11/01/13 | 10/31/14 | 45.11 | (0.61 | ) | 3.52 | 2.91 | — | (0.69 | ) | — | (0.69 | ) | 47.33 | 1.82 | 1.82 | (1.32 | ) | 37 | 6.52 | 190 | |||||||||
Class I* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 65.18 | (0.22 | ) | 2.15 | 1.93 | — | (4.83 | ) | — | (4.83 | ) | 62.28 | 0.75 | 0.75 | (0.33 | ) | 35 | 2.91 | 1,369 | |||||||||
11/01/16 | 10/31/17 | 52.55 | (0.08 | ) | 14.33 | 14.25 | — | (1.62 | ) | — | (1.62 | ) | 65.18 | 0.78 | 0.78 | (0.13 | ) | 40 | 27.68 | 1,691 | |||||||||
11/01/15 | 10/31/16 | 54.84 | (0.16 | ) | 1.33 | 1.17 | — | (3.46 | ) | — | (3.46 | ) | 52.55 | 0.81 | 0.81 | (0.32 | ) | 32 | 2.40 | 1,374 | |||||||||
11/01/14 | 10/31/15 | 59.19 | (0.16 | ) | 2.29 | 2.13 | — | (6.48 | ) | — | (6.48 | ) | 54.84 | 0.78 | 0.78 | (0.28 | ) | 45 | 3.58 | 1,757 | |||||||||
11/01/13 | 10/31/14 | 55.68 | (0.16 | ) | 4.36 | 4.20 | — | (0.69 | ) | — | (0.69 | ) | 59.19 | 0.78 | 0.78 | (0.29 | ) | 37 | 7.61 | 1,770 | |||||||||
Class R-3* | |||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 60.51 | (0.55 | ) | 2.01 | 1.46 | — | (4.83 | ) | — | (4.83 | ) | 57.14 | 1.32 | 1.32 | (0.90 | ) | 35 | 2.32 | 85 | |||||||||
11/01/16 | 10/31/17 | 49.18 | (0.40 | ) | 13.35 | 12.95 | — | (1.62 | ) | — | (1.62 | ) | 60.51 | 1.38 | 1.38 | (0.73 | ) | 40 | 26.92 | 98 | |||||||||
11/01/15 | 10/31/16 | 51.82 | (0.43 | ) | 1.25 | 0.82 | — | (3.46 | ) | — | (3.46 | ) | 49.18 | 1.39 | 1.39 | (0.90 | ) | 32 | 1.83 | 94 | |||||||||
11/01/14 | 10/31/15 | 56.59 | (0.48 | ) | 2.19 | 1.71 | — | (6.48 | ) | — | (6.48 | ) | 51.82 | 1.38 | 1.38 | (0.88 | ) | 45 | 2.94 | 119 | |||||||||
11/01/13 | 10/31/14 | 53.58 | (0.50 | ) | 4.20 | 3.70 | — | (0.69 | ) | — | (0.69 | ) | 56.59 | 1.42 | 1.42 | (0.92 | ) | 37 | 6.97 | 127 |
carillontower.com | 105
Financial Highlights
PROSPECTUS | 3. 1. 2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||||||||||||||||||||||
Fiscal
periods |
Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | |||||||||||||||||||||||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | |||||||||||||||||||||||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||||||||||||||||||||||
Carillon Eagle Small Cap Growth Fund (cont’d) | |||||||||||||||||||||||||||||||||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $65.45 | $(0.22 | ) | $2.16 | $1.94 | $— | $(4.83 | ) | $— | $(4.83 | ) | $62.56 | 0.75 | 0.75 | (0.33 | ) | 35 | 2.92 | $441 | |||||||||||||||||||||||||||||
11/01/16 | 10/31/17 | 52.75 | (0.07 | ) | 14.39 | 14.32 | — | (1.62 | ) | — | (1.62 | ) | 65.45 | 0.77 | 0.77 | (0.11 | ) | 40 | 27.71 | 469 | |||||||||||||||||||||||||||||
11/01/15 | 10/31/16 | 55.02 | (0.15 | ) | 1.34 | 1.19 | — | (3.46 | ) | — | (3.46 | ) | 52.75 | 0.78 | 0.78 | (0.30 | ) | 32 | 2.43 | 444 | |||||||||||||||||||||||||||||
11/01/14 | 10/31/15 | 59.37 | (0.15 | ) | 2.28 | 2.13 | — | (6.48 | ) | — | (6.48 | ) | 55.02 | 0.75 | 0.75 | (0.25 | ) | 45 | 3.57 | 418 | |||||||||||||||||||||||||||||
11/01/13 | 10/31/14 | 55.83 | (0.16 | ) | 4.39 | 4.23 | — | (0.69 | ) | — | (0.69 | ) | 59.37 | 0.77 | 0.77 | (0.28 | ) | 37 | 7.64 | 348 | |||||||||||||||||||||||||||||
Class R-6* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 65.92 | (0.16 | ) | 2.18 | 2.02 | — | (4.83 | ) | — | (4.83 | ) | 63.11 | 0.65 | 0.65 | (0.24 | ) | 35 | 3.02 | 2,141 | |||||||||||||||||||||||||||||
11/01/16 | 10/31/17 | 53.06 | (0.04 | ) | 14.52 | 14.48 | — | (1.62 | ) | — | (1.62 | ) | 65.92 | 0.66 | 0.66 | (0.06 | ) | 40 | 27.86 | 2,005 | |||||||||||||||||||||||||||||
11/01/15 | 10/31/16 | 55.27 | (0.10 | ) | 1.35 | 1.25 | — | (3.46 | ) | — | (3.46 | ) | 53.06 | 0.67 | 0.67 | (0.19 | ) | 32 | 2.53 | 1,139 | |||||||||||||||||||||||||||||
11/01/14 | 10/31/15 | 59.55 | (0.10 | ) | 2.30 | 2.20 | — | (6.48 | ) | — | (6.48 | ) | 55.27 | 0.66 | 0.66 | (0.17 | ) | 45 | 3.68 | 737 | |||||||||||||||||||||||||||||
11/01/13 | 10/31/14 | 55.92 | (0.10 | ) | 4.42 | 4.32 | — | (0.69 | ) | — | (0.69 | ) | 59.55 | 0.66 | 0.66 | (0.17 | ) | 37 | 7.79 | 576 | |||||||||||||||||||||||||||||
Class Y* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 65.89 | (0.50 | ) | 1.47 | 0.97 | — | (4.83 | ) | — | (4.83 | ) | 62.03 | 1.12 | 1.12 | (0.77 | ) | 35 | 1.40 | 0 | |||||||||||||||||||||||||||||
Carillon Scout International Fund | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.21 | (2.26 | ) | (2.05 | ) | (0.22 | ) | (3.76 | ) | — | (3.98 | ) | 19.02 | 1.31 | 1.31 | 1.05 | 13 | (9.90 | ) | 0 | |||||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.18 | (2.38 | ) | (2.20 | ) | (0.20 | ) | (3.76 | ) | — | (3.96 | ) | 18.89 | 2.20 | 2.23 | 0.87 | 13 | (10.59 | ) | 0 | |||||||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 25.18 | 0.38 | (2.51 | ) | (2.13 | ) | (0.22 | ) | (3.76 | ) | — | (3.98 | ) | 19.07 | 1.06 | 1.06 | 1.73 | 13 | (10.12 | ) | 821 | |||||||||||||||||||||||||||
07/01/17 | 10/31/17 | 23.21 | 0.07 | 1.90 | 1.97 | — | — | — | — | 25.18 | 1.08 | 1.08 | 0.81 | 7 | 8.49 | 1,161 | |||||||||||||||||||||||||||||||||
07/01/16 | 06/30/17 | 23.10 | 0.37 | 3.50 | 3.87 | (0.42 | ) | (3.34 | ) | — | (3.76 | ) | 23.21 | 1.06 | 1.06 | 1.61 | 20 | 18.80 | 1,186 | ||||||||||||||||||||||||||||||
07/01/15 | 06/30/16 | 33.69 | 0.56 | (3.41 | ) | (2.85 | ) | (0.59 | ) | (7.15 | ) | — | (7.74 | ) | 23.10 | 1.05 | 1.05 | 1.38 | 23 | (7.89 | ) | 1,484 | |||||||||||||||||||||||||||
07/01/14 | 06/30/15 | 37.81 | 0.65 | (1.59 | ) | (0.94 | ) | (0.60 | ) | (2.58 | ) | — | (3.18 | ) | 33.69 | 1.02 | 1.02 | 1.48 | 17 | (2.22 | ) | 4,775 | |||||||||||||||||||||||||||
07/01/13 | 06/30/14 | 33.52 | 0.50 | 4.29 | 4.79 | (0.50 | ) | — | — | (0.50 | ) | 37.81 | 1.01 | 1.01 | 1.23 | 12 | 14.30 | 8,580 | |||||||||||||||||||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.23 | (2.33 | ) | (2.10 | ) | (0.22 | ) | (3.76 | ) | — | (3.98 | ) | 18.97 | 1.70 | 2.16 | 1.14 | 13 | (10.16 | ) | 0 | |||||||||||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.34 | (2.34 | ) | (2.00 | ) | (0.23 | ) | (3.76 | ) | — | (3.99 | ) | 19.06 | 1.15 | 1.66 | 1.69 | 13 | (9.68 | ) | 0 | |||||||||||||||||||||||||||
Class R-6* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.32 | (2.30 | ) | (1.98 | ) | (0.23 | ) | (3.76 | ) | — | (3.99 | ) | 19.08 | 0.99 | 0.99 | 1.60 | 13 | (9.59 | ) | 3 | |||||||||||||||||||||||||||
Class Y* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 25.05 | 0.28 | (2.34 | ) | (2.06 | ) | (0.22 | ) | (3.76 | ) | — | (3.98 | ) | 19.01 | 1.45 | 2.16 | 1.39 | 13 | (9.94 | ) | 0 | |||||||||||||||||||||||||||
Carillon Scout Mid Cap Fund | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | 0.05 | (0.30 | ) | (0.25 | ) | (0.02 | ) | (1.54 | ) | — | (1.56 | ) | 18.37 | 1.19 | 1.19 | 0.28 | 106 | (1.51 | ) | 7 | |||||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | (0.09 | ) | (0.28 | ) | (0.37 | ) | (0.01 | ) | (1.54 | ) | — | (1.55 | ) | 18.26 | 1.94 | 1.94 | (0.47 | ) | 106 | (2.16 | ) | 9 | |||||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 19.77 | 0.08 | 0.12 | 0.20 | (0.02 | ) | (1.54 | ) | — | (1.56 | ) | 18.41 | 0.97 | 0.97 | 0.40 | 106 | 0.74 | 2,420 | ||||||||||||||||||||||||||||||
07/01/17 | 10/31/17 | 18.11 | — | (d) | 1.66
|
1.66 | — | — | — | — | 19.77 | 1.01 | 1.01 | 0.03 | 20 | 9.17 | 1,675 | ||||||||||||||||||||||||||||||||
07/01/16 | 06/30/17 | 15.06 | 0.07 | 3.35 | 3.42 | (0.07 | ) | (0.30 | ) | — | (0.37 | ) | 18.11 | 1.03 | 1.03 | 0.43 | 87 | 22.93 | 1,437 | ||||||||||||||||||||||||||||||
07/01/15 | 06/30/16 | 16.02 | 0.21 | 0.13 | 0.34 | (0.17 | ) | (1.13 | ) | — | (1.30 | ) | 15.06 | 1.04 | 1.04 | 1.34 | 161 | 2.69 | 1,292 | ||||||||||||||||||||||||||||||
07/01/14 | 06/30/15 | 18.79 | 0.03 | 0.30 | 0.33 | (0.02 | ) | (3.08 | ) | — | (3.10 | ) | 16.02 | 1.04 | 1.04 | 0.17 | 158 | 2.42 | 1,585 | ||||||||||||||||||||||||||||||
07/01/13 | 06/30/14 | 15.75 | — | (d) | 3.99 | 3.99 | — | (d) | (0.95 | ) | — | (0.95 | ) | 18.79 | 1.02 | 1.02 | 0.01 | 134 | 25.75 | 2,538 | |||||||||||||||||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | 0.01 | (0.32 | ) | (0.31 | ) | (0.01 | ) | (1.54 | ) | — | (1.55 | ) | 18.32 | 1.44 | 1.44 | 0.04 | 106 | (1.83 | ) | 2 | |||||||||||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | 0.10 | (0.36 | ) | (0.26 | ) | (0.03 | ) | (1.54 | ) | — | (1.57 | ) | 18.35 | 0.99 | 0.99 | 0.53 | 106 | (1.62 | ) | 1 | |||||||||||||||||||||||||||
Class R-6* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | 0.12 | (0.32 | ) | (0.20 | ) | (0.03 | ) | (1.54 | ) | — | (1.57 | ) | 18.41 | 0.90 | 0.90 | 0.62 | 106 | (1.29 | ) | 34 | |||||||||||||||||||||||||||
Class Y* | |||||||||||||||||||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 20.18 | 0.07 | (0.32 | ) | (0.25 | ) | (0.02 | ) | (1.54 | ) | — | (1.56 | ) | 18.37 | 1.19 | 1.19 | 0.36 | 106 | (1.51 | ) | 2 |
106 | carillontower.com
Financial Highlgihts
PROSPECTUS | 3.1.2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | ||||||||||||||||||||||||||||
From | Ending | With | Without | Ending | ||||||||||||||||||||||||||
Fiscal periods | Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | ||||||||||||||||||
net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | ||||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | ||||||||||||||
Carillon Scout Small Cap Fund | ||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | $29.63 | $(0.26 | ) | $2.68 | $2.42 | $— | $(4.95 | ) | $— | $(4.95 | ) | $27.10 | 1.23 | 1.23 | (0.95 | ) | 22 | 8.00 | $12 | ||||||||||
Class C* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 29.63 | (0.47 | ) | 2.68 | 2.21 | — | (4.95 | ) | — | (4.95 | ) | 26.89 | 1.97 | 1.97 | (1.69 | ) | 22 | 7.21 | 14 | ||||||||||
Class I* | ||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 29.33 | (0.14 | ) | 2.93 | 2.79 | — | (4.95 | ) | — | (4.95 | ) | 27.17 | 0.95 | 0.97 | (0.49 | ) | 22 | 9.36 | 287 | ||||||||||
07/01/17 | 10/31/17 | 26.81 | (0.04 | ) | 2.56 | 2.52 | — | — | — | — | 29.33 | 1.03 | 1.03 | (0.45 | ) | 6 | 9.40 | 271 | ||||||||||||
07/01/16 | 06/30/17 | 21.45 | (0.09 | ) | 6.52 | 6.43 | — | (1.07 | ) | — | (1.07 | ) | 26.81 | 1.04 | 1.04 | (0.39 | ) | 25 | 30.70 | 242 | ||||||||||
07/01/15 | 06/30/16 | 26.61 | (0.07 | ) | (1.55 | ) | (1.62 | ) | — | (3.54 | ) | — | (3.54 | ) | 21.45 | 1.13 | 1.13 | (0.32 | ) | 16 | (6.01 | ) | 198 | |||||||
07/01/14 | 06/30/15 | 24.49 | (0.07 | ) | 2.37 | 2.30 | — | (0.18 | ) | — | (0.18 | ) | 26.61 | 1.12 | 1.12 | (0.27 | ) | 22 | 9.44 | 249 | ||||||||||
07/01/13 | 06/30/14 | 20.55 | (0.04 | ) | 3.98 | 3.94 | — | — | — | — | 24.49 | 1.12 | 1.12 | (0.15 | ) | 17 | 19.17 | 251 | ||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 29.63 | (0.33 | ) | 2.67 | 2.34 | — | (4.95 | ) | — | (4.95 | ) | 27.02 | 1.50 | 1.67 | (1.20 | ) | 22 | 7.70 | 0 | ||||||||||
Class R-5* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 29.63 | (0.17 | ) | 2.66 | 2.49 | — | (4.95 | ) | — | (4.95 | ) | 27.17 | 0.95 | 1.32 | (0.60 | ) | 22 | 8.26 | 0 | ||||||||||
Class R-6* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 29.63 | (0.13 | ) | 2.65 | 2.52 | — | (4.95 | ) | — | (4.95 | ) | 27.20 | 0.85 | 0.86 | (0.47 | ) | 22 | 8.37 | 5 | ||||||||||
Class Y* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 29.63 | (0.24 | ) | 2.65 | 2.41 | — | (4.95 | ) | — | (4.95 | ) | 27.09 | 1.25 | 1.59 | (0.87 | ) | 22 | 7.96 | 0 | ||||||||||
Carillon Reams Core Bond Fund | ||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.42 | 0.20 | (0.40 | ) | (0.20 | ) | (0.19 | ) | — | — | (0.19 | ) | 11.03 | 0.80 | 1.16 | 1.88 | 278 | (1.78 | ) | 1 | |||||||||
Class C* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.42 | 0.12 | (0.40 | ) | (0.28 | ) | (0.12 | ) | — | — | (0.12 | ) | 11.02 | 1.55 | 1.99 | 1.11 | 278 | (2.43 | ) | 0 | |||||||||
Class I* | ||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 11.40 | 0.24 | (0.38 | ) | (0.14 | ) | (0.22 | ) | — | — | (0.22 | ) | 11.04 | 0.40 | 0.87 | 2.12 | 278 | (1.23 | ) | 105 | |||||||||
07/01/17 | 10/31/17 | 11.37 | 0.07 | 0.03 | 0.10 | (0.07 | ) | — | — | (0.07 | ) | 11.40 | 0.40 | 0.69 | 1.65 | 126 | 0.85 | 141 | ||||||||||||
07/01/16 | 06/30/17 | 11.90 | 0.15 | (0.24 | ) | (0.09 | ) | (0.19 | ) | (0.25 | ) | — | (0.44 | ) | 11.37 | 0.40 | 0.66 | 1.30 | 390 | (0.71 | ) | 166 | ||||||||
07/01/15 | 06/30/16 | 11.42 | 0.18 | 0.49 | 0.67 | (0.19 | ) | — | — | (0.19 | ) | 11.90 | 0.40 | 0.62 | 1.62 | 453 | 6.00 | 204 | ||||||||||||
07/01/14 | 06/30/15 | 11.50 | 0.14 | (0.07 | ) | 0.07 | (0.15 | ) | — | — | (0.15 | ) | 11.42 | 0.40 | 0.61 | 1.21 | 158 | 0.61 | 210 | |||||||||||
07/01/13 | 06/30/14 | 11.41 | 0.15 | 0.15 | 0.30 | (0.17 | ) | (0.04 | ) | — | (0.21 | ) | 11.50 | 0.40 | 0.62 | 1.32 | 636 | 2.65 | 219 | |||||||||||
Class R-3* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.42 | 0.16 | (0.38 | ) | (0.22 | ) | (0.16 | ) | — | — | (0.16 | ) | 11.04 | 1.05 | 2.02 | 1.51 | 278 | (1.96 | ) | 0 | |||||||||
Class R-5* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.42 | 0.22 | (0.38 | ) | (0.16 | ) | (0.21 | ) | — | — | (0.21 | ) | 11.05 | 0.50 | 1.52 | 2.06 | 278 | (1.40 | ) | 0 | |||||||||
Class R-6* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.42 | 0.23 | (0.38 | ) | (0.15 | ) | (0.22 | ) | — | — | (0.22 | ) | 11.05 | 0.40 | 1.52 | 2.16 | 278 | (1.32 | ) | 0 | |||||||||
Class Y* | ||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 11.40 | 0.19 | (0.37 | ) | (0.18 | ) | (0.18 | ) | — | — | (0.18 | ) | 11.04 | 0.80 | 1.19 | 1.71 | 278 | (1.60 | ) | 2 | |||||||||
07/01/17 | 10/31/17 | 11.37 | 0.05 | 0.03 | 0.08 | (0.05 | ) | — | — | (0.05 | ) | 11.40 | 0.80 | 1.00 | 1.25 | 126 | 0.71 | 3 | ||||||||||||
07/01/16 | 06/30/17 | 11.90 | 0.10 | (0.24 | ) | (0.14 | ) | (0.14 | ) | (0.25 | ) | — | (0.39 | ) | 11.37 | 0.79 | 0.97 | 0.91 | 390 | (1.09 | ) | 3 | ||||||||
07/01/15 | 06/30/16 | 11.42 | 0.15 | 0.49 | 0.64 | (0.16 | ) | — | — | (0.16 | ) | 11.90 | 0.75 | 0.97 | 1.27 | 453 | 5.63 | 4 | ||||||||||||
07/01/14 | 06/30/15 | 11.50 | 0.10 | (0.07 | ) | 0.03 | (0.11 | ) | — | — | (0.11 | ) | 11.42 | 0.76 | 0.97 | 0.85 | 158 | 0.24 | 4 | |||||||||||
07/01/13 | 06/30/14 | 11.40 | 0.11 | 0.16 | 0.27 | (0.13 | ) | (0.04 | ) | — | (0.17 | ) | 11.50 | 0.79 | 1.01 | 0.93 | 636 | 2.34 | 4 | |||||||||||
Carillon Reams Core Plus Bond Fund | ||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 31.76 | 0.54 | (1.36 | ) | (0.82 | ) | (0.50 | ) | — | — | (0.50 | ) | 30.44 | 0.80 | 0.97 | 1.85 | 292 | (2.60 | ) | 0 | |||||||||
Class C* | ||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 31.76 | 0.32 | (1.36 | ) | (1.04 | ) | (0.31 | ) | — | — | (0.31 | ) | 30.41 | 1.55 | 1.85 | 1.09 | 292 | (3.31 | ) | 0 |
Financial Highlights
PROSPECTUS | 3. 1. 2019
From investment operations | Dividends & distributions | Ratios to average net asset (%) | |||||||||||||||||||||||||||||||
From | Ending | With | Without | Ending | |||||||||||||||||||||||||||||
Beginning | Realized & | From | From | return | net | expenses | expenses | Net | Portfolio | Total | net | ||||||||||||||||||||||
Fiscal periods | net asset | Income | unrealized | investment | realized | of | asset | waived/ | waived/ | income | turnover | return | assets | ||||||||||||||||||||
Beginning | Ending | value | (loss) | gain (loss) | Total | income | gains | capital | Total | value | recovered (a) | recovered (a) | (loss) (a) | rate (%) (b) | (%) (b)(c) | (millions) | |||||||||||||||||
Carillon Reams Core Plus Bond Fund (cont’d) | |||||||||||||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | $31.74 | $0.66 | $(1.34 | ) | $(0.68 | ) | $(0.60 | ) | $— | $— | $(0.60 | ) | $30.46 | 0.40 | 0.60 | 2.11 | 292 | (2.17 | ) | $607 | ||||||||||||
07/01/17 | 10/31/17 | 31.64 | 0.16 | 0.11 | 0.27 | (0.16 | ) | — | (0.01 | ) | (0.17 | ) | 31.74 | 0.40 | 0.58 | 1.53 | 123 | 0.85 | 741 | ||||||||||||||
07/01/16 | 06/30/17 | 32.98 | 0.42 | (0.51 | ) | (0.09 | ) | (0.52 | ) | (0.73 | ) | — | (1.25 | ) | 31.64 | 0.40 | 0.59 | 1.32 | 433 | (0.18 | ) | 784 | |||||||||||
07/01/15 | 06/30/16 | 32.27 | 0.60 | 1.14 | 1.74 | (0.56 | ) | (0.47 | ) | — | (1.03 | ) | 32.98 | 0.40 | 0.55 | 1.87 | 480 | 5.53 | 844 | ||||||||||||||
07/01/14 | 06/30/15 | 32.30 | 0.39 | (0.01 | ) | 0.38 | (0.38 | ) | (0.03 | ) | — | (0.41 | ) | 32.27 | 0.40 | 0.56 | 1.22 | 187 | 1.19 | 638 | |||||||||||||
07/01/13 | 06/30/14 | 31.94 | 0.49 | 0.44 | 0.93 | (0.44 | ) | (0.13 | ) | — | (0.57 | ) | 32.30 | 0.40 | 0.57 | 1.53 | 663 | 2.94 | 448 | ||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 31.76 | 0.45 | (1.34 | ) | (0.89 | ) | (0.43 | ) | — | — | (0.43 | ) | 30.44 | 1.05 | 1.77 | 1.51 | 292 | (2.84 | ) | 0 | ||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 31.76 | 0.61 | (1.34 | ) | (0.73 | ) | (0.57 | ) | — | — | (0.57 | ) | 30.46 | 0.50 | 1.27 | 2.07 | 292 | (2.31 | ) | 0 | ||||||||||||
Class R-6* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 31.76 | 0.64 | (1.34 | ) | (0.70 | ) | (0.60 | ) | — | — | (0.60 | ) | 30.46 | 0.40 | 1.27 | 2.17 | 292 | (2.23 | ) | 0 | ||||||||||||
Class Y* | |||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 31.73 | 0.53 | (1.34 | ) | (0.81 | ) | (0.48 | ) | — | — | (0.48 | ) | 30.44 | 0.80 | 0.96 | 1.70 | 292 | (2.56 | ) | 17 | ||||||||||||
07/01/17 | 10/31/17 | 31.63 | 0.12 | 0.10 | 0.22 | (0.11 | ) | — | (0.01 | ) | (0.12 | ) | 31.73 | 0.80 | 0.93 | 1.13 | 123 | 0.71 | 28 | ||||||||||||||
07/01/16 | 06/30/17 | 32.97 | 0.30 | (0.51 | ) | (0.21 | ) | (0.39 | ) | (0.74 | ) | — | (1.13 | ) | 31.63 | 0.78 | 0.91 | 0.94 | 433 | (0.57 | ) | 30 | |||||||||||
07/01/15 | 06/30/16 | 32.27 | 0.48 | 1.14 | 1.62 | (0.45 | ) | (0.47 | ) | — | (0.92 | ) | 32.97 | 0.74 | 0.89 | 1.53 | 480 | 5.16 | 82 | ||||||||||||||
07/01/14 | 06/30/15 | 32.29 | 0.26 | (0.01 | ) | 0.25 | (0.24 | ) | (0.03 | ) | — | (0.27 | ) | 32.27 | 0.80 | 0.96 | 0.82 | 187 | 0.79 | 57 | |||||||||||||
07/01/13 | 06/30/14 | 31.94 | 0.38 | 0.43 | 0.81 | (0.33 | ) | (0.13 | ) | — | (0.46 | ) | 32.29 | 0.78 | 0.95 | 1.15 | 663 | 2.54 | 102 | ||||||||||||||
Carillon Reams Unconstrained Bond Fund | |||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.83 | 0.21 | (0.41 | ) | (0.20 | ) | (0.18 | ) | — | — | (0.18 | ) | 11.45 | 0.80 | 1.20 | 1.85 | 139 | (1.71 | ) | 0 | ||||||||||||
Class C* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.83 | 0.11 | (0.41 | ) | (0.30 | ) | (0.11 | ) | — | — | (0.11 | ) | 11.42 | 1.55 | 2.42 | 0.99 | 139 | (2.55 | ) | 0 | ||||||||||||
Class I* | |||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 11.85 | 0.22 | (0.43 | ) | (0.21 | ) | (0.21 | ) | — | — | (0.21 | ) | 11.43 | 0.50 | 0.83 | 1.90 | 139 | (1.79 | ) | 1,183 | ||||||||||||
07/01/17 | 10/31/17 | 11.83 | 0.04 | 0.02 | 0.06 | (0.04 | ) | — | — | (0.04 | ) | 11.85 | 0.50 | 0.80 | 1.00 | 83 | 0.48 | 1,521 | |||||||||||||||
07/01/16 | 06/30/17 | 11.70 | 0.10 | 0.15 | 0.25 | (0.12 | ) | — | — | (0.12 | ) | 11.83 | 0.50 | 0.80 | 0.86 | 370 | 2.15 | 1,475 | |||||||||||||||
07/01/15 | 06/30/16 | 11.32 | 0.21 | 0.27 | 0.48 | (0.10 | ) | — | — | (0.10 | ) | 11.70 | 0.50 | 0.82 | 1.88 | 615 | 4.28 | 1,281 | |||||||||||||||
07/01/14 | 06/30/15 | 11.65 | 0.08 | (0.29 | ) | (0.21 | ) | (0.12 | ) | — | — | (0.12 | ) | 11.32 | 0.50 | 0.81 | 0.79 | 116 | (1.77 | ) | 1,477 | ||||||||||||
07/01/13 | 06/30/14 | 11.70 | 0.04 | 0.01 | 0.05 | (0.03 | ) | (0.07 | ) | — | (0.10 | ) | 11.65 | 0.50 | 0.84 | 0.40 | 422 | 0.44 | 1,806 | ||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.83 | 0.15 | (0.39 | ) | (0.24 | ) | (0.16 | ) | — | — | (0.16 | ) | 11.43 | 1.05 | 2.25 | 1.40 | 139 | (2.09 | ) | 0 | ||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.83 | 0.21 | (0.40 | ) | (0.19 | ) | (0.21 | ) | — | — | (0.21 | ) | 11.43 | 0.50 | 1.45 | 1.95 | 139 | (1.62 | ) | 0 | ||||||||||||
Class R-6* | |||||||||||||||||||||||||||||||||
11/20/17 | 10/31/18 | 11.83 | 0.25 | (0.43 | ) | (0.18 | ) | (0.22 | ) | — | — | (0.22 | ) | 11.43 | 0.40 | 0.76 | 2.32 | 139 | (1.53 | ) | 29 | ||||||||||||
Class Y* | |||||||||||||||||||||||||||||||||
11/01/17 | 10/31/18 | 11.90 | 0.18 | (0.41 | ) | (0.23 | ) | (0.18 | ) | — | — | (0.18 | ) | 11.49 | 0.80 | 1.14 | 1.58 | 139 | (1.97 | ) | 37 | ||||||||||||
07/01/17 | 10/31/17 | 11.88 | 0.03 | 0.02 | 0.05 | (0.03 | ) | — | — | (0.03 | ) | 11.90 | 0.80 | 1.07 | 0.69 | 83 | 0.38 | 71 | |||||||||||||||
07/01/16 | 06/30/17 | 11.75 | 0.07 | 0.14 | 0.21 | (0.08 | ) | — | — | (0.08 | ) | 11.88 | 0.80 | 1.09 | 0.56 | 370 | 1.78 | 99 | |||||||||||||||
07/01/15 | 06/30/16 | 11.30 | 0.13 | 0.32 | 0.45 | — | — | — | — | 11.75 | 0.79 | 1.11 | 1.59 | 615 | 3.98 | 92 | |||||||||||||||||
07/01/14 | 06/30/15 | 11.64 | 0.03 | (0.27 | ) | (0.24 | ) | (0.10 | ) | — | — | (0.10 | ) | 11.30 | 0.80 | 1.11 | 0.49 | 116 | (2.05 | ) | 260 | ||||||||||||
07/01/13 | 06/30/14 | 11.71 | 0.01 | — | (d) | 0.01 | (0.01 | ) | (0.07 | ) | — | (0.08 | ) | 11.64 | 0.78 | 1.12 | 0.12 | 422 | 0.12 | 555 |
* Per share amounts have been calculated using the daily average share method.
(a) Annualized for periods less than one year.
(b) Not annualized for periods less than one year.
(c) Total returns are calculated without the imposition of either front—end or contingent deferred sales charges.
(d) Per share amount is less than $0.005.
108 | carillontower.com
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033-57986 |
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