Carillon
Mutual Funds
Prospectus
| May 1,
2023 (as supplemented August 7, 2023)
| Equity Funds | Class Chartwell | |
| Carillon Chartwell Mid Cap Value Fund | BERCX | |
| Carillon Chartwell Small Cap Growth Fund | CWSGX | |
| Carillon Chartwell Small Cap Value Fund | CWSIX | |
| Fixed Income Funds | Class Chartwell | |
| Carillon Chartwell Income Fund | BERIX | |
| Carillon Chartwell Short Duration High Yield Fund | CWFIX | |
| Carillon Chartwell Short Duration Bond Fund | CWSDX | |
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.
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Table
of Contents
Summaries
| More Information About the Funds |
| |||
| Additional Information About the Funds | 33 | |||
| Additional Information Regarding Investment Strategies | 33 | |||
| Additional Information About Principal Risk Factors | 39 | |||
| Investment Adviser | 49 | |||
| Sub‑Adviser | 50 | |||
| Portfolio Managers | 50 | |||
| Distributor | 54 | |||
| Rule 12b‑1 Distribution Plan | 54 | |||
| Payments to Financial Intermediaries | 54 | |||
| How to Invest | 56 | |||
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
| Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 0.64% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
When
selecting corporate bonds, the sub‑adviser will consider the rating the bond has
received from Standard & Poor’s Ratings Services, a division of McGraw
Hill Companies, Inc. (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”) or
Fitch Ratings Ltd. (“Fitch”). The sub‑adviser may invest in fixed income
securities of any maturity or credit rating including below investment grade
securities. Investment grade securities are those rated in the Baa3 or higher
categories by Moody’s, or in the BBB‑ or higher categories by S&P or Fitch
or, if unrated by S&P, Moody’s or Fitch, determined by the sub‑adviser to be
of comparable credit quality. Below-investment grade securities, commonly
referred to as “junk bonds” or “high yield securities,” are securities rated
below investment grade by at least one of Moody’s, S&P or Fitch (or, if
unrated, determined by the sub‑adviser to be of comparable credit quality). The
sub‑adviser may purchase bonds in private transactions that qualify under Rule
144A of the Securities Act of 1933 (the “1933 Act”). Additionally, the
sub‑adviser may purchase securities that are not registered under the 1933 Act
and securities issued in non‑U.S. markets subject to similar regulations,
including Section 4(a)(2) securities and Rule 144A securities, which are
subject to restrictions on resale.
The
sub‑adviser will select corporate bonds primarily on the basis of current yield
and secondarily on the basis of anticipated long term return. The duration of
bonds purchased by the fund will usually vary from three to seven years. The
sub‑adviser has the discretion to vary the duration of the portfolio in order to
seek to take advantage of prevailing trends in interest rates. The fund
generally invests in the fixed-income securities of large-capitalization
companies.
The
fund may invest in common stocks, subject to the 30% limit described above, and
in preferred stocks when the sub‑adviser deems it appropriate. The portfolio
allocations to preferred and common stocks are determined by the sub‑adviser
based upon its evaluation of the bond market. The outlook for the economy
generally is also a consideration. During periods of economic strength, greater
emphasis may be placed on preferred and common stocks than on other investments.
Preferred stocks are generally selected based on one of two criteria:
(1) preferred stocks that the sub‑adviser believes are offering an above
average yield, in comparison to other preferred stocks of the same quality; and
(2) preferred stocks that the sub‑adviser believes offer the potential for
capital appreciation due to the business prospects of the issuers. The fund may
also purchase preferred stocks in private transactions that qualify under
Rule 144A of the 1933 Act. The fund may invest in equity securities of any
market capitalization.
Common
stocks are generally selected based on one of three value-based criteria:
(1) stocks selling substantially below their book values; (2) stocks
judged by the sub‑adviser to be selling at low valuations based on their present
earnings levels; and (3) stocks judged by the sub‑adviser to have above
average growth prospects and to be selling at small premiums to their book
values or at modest valuations based on their present earnings levels. In
addition, the fund will only purchase common stocks that pay cash dividends;
however, the fund may purchase preferred stocks that do not have to be paying
current dividends. If a common stock stops paying dividends after its purchase
by the fund, the fund would not be required to sell the stock. The sub‑adviser
may purchase ETFs designed to track equity and fixed income securities indices
to manage the fund’s cash holdings. ETFs are investment companies that invest in
portfolios of securities, often designed to track particular market segments or
indices, the shares of which are bought and sold on a securities
exchange.
| • |
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the
|
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
| financial condition of a single issuer, industry or market segment also can impact the market as a whole. In addition, adverse market events may lead to increased redemptions, which could cause the fund to experience a loss when selling securities to meet redemption requests by shareholders. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. Conversely, it is also possible that, during a general downturn in the securities markets, multiple asset classes may decline in value simultaneously. Changes in value may be temporary or may last for extended periods. The financial 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. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in the US and abroad.
Deteriorating economic fundamentals and unexpected increases in interest rates
may, in turn, increase the risk of default or insolvency of particular issuers,
negatively impact market value, cause credit spreads to widen, and reduce bank
balance sheets. Any of these could cause an increase in market volatility,
reduce liquidity across various sectors or markets or decrease confidence in the
markets. Additionally, high public debt in the U.S. and other countries creates
ongoing systemic and market risks and policymaking uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
| • |
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
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. Very low or negative interest
rates may magnify interest rate risk. During periods of very low or
negative interest rates, the fund may be unable to maintain positive
returns or pay dividends to fund shareholders;
|
| • |
Callable securities risk arises from the
fact that the fund may invest in fixed-income securities with call
features. A call feature allows the issuer of the security to redeem or
call the security prior to its stated maturity date. In periods of falling
interest rates, issuers may be more likely to call in securities that
|
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
| are paying higher coupon rates than prevailing interest rates. In the event of a call, the fund would lose the income that would have been earned to maturity on that security, and the proceeds received by the fund may be invested in securities paying lower coupon rates and may not benefit from any increase in value that might otherwise result from declining interest rates; |
| • |
Credit risk arises if an issuer is unable
or unwilling, or is perceived as unable or unwilling, to meet its
financial obligations or goes bankrupt;
|
| • |
Equity securities are subject to market
risk. The fund may invest in the following equity securities, which may
expose the fund to the following additional risks:
|
Common
stocks. 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;
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. Generally, a convertible security is subject to the
market risks of stocks when the price of the underlying stock is high relative
to the conversion price, and is subject to the market risks of debt securities
when the underlying stock’s price is low relative to the conversion price;
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;
Preferred
stocks. Preferred stocks are subject to issuer-specific risks and
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. Preferred stocks may also be subject to credit risk, which is the risk
that an issuer may be unable or unwilling to meet its financial obligations;
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, and are dependent upon the skills of their
managers. REITs typically incur fees that are separate from those incurred by
the fund, meaning the fund, as a shareholder, will indirectly bear a
proportionate share of a REIT’s operating expenses;
| • |
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, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest. High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
| • |
Large‑cap company risk arises because
large‑cap companies may be less responsive to competitive challenges and
opportunities, and may be unable to attain high growth rates, relative to
smaller companies;
|
| • |
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. 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. Market prices for such securities may be volatile;
|
| • |
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
sub‑adviser about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region, which may
prove to be incorrect. Investment strategies employed by the fund’s
sub‑adviser in selecting investments for the fund may not result in an
increase in the value of your investment or in overall performance equal
to other investments;
|
| • |
Master limited partnership risk involves
certain risks related to investing in the underlying assets of the MLPs
and risks associated with pooled investment vehicles. Investments held by
MLPs may be relatively illiquid, limiting the MLPs’ ability to change
their portfolios promptly in response to changes in economic or other
conditions. MLPs may have limited financial resources, their securities
may trade infrequently and in limited volume, they may be difficult to
value, and they may be subject to more abrupt or erratic price movements
than securities of larger or more broadly based companies. Holders of
units in MLPs have more limited rights to vote on matters affecting the
partnership and may be required to sell their common units at an
undesirable time or price. The fund’s investments in MLPs will be limited
to no more than 25% of its assets in order for the fund to meet the
requirements necessary to qualify as a “regulated investment company”
under the Internal Revenue Code of 1986, as amended;
|
| • |
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
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. Although the value of a mortgage-backed security
may decline when interest rates rise, the converse is not necessarily
true, since in periods of declining interest rates the mortgages
underlying the security are more likely to be prepaid. When interest rates
rise, the effective duration of a fund’s mortgage-backed and asset-backed
securities may lengthen due to a drop in prepayments of the underlying
mortgages. This delay in the repayment of principal could increase the
potential for loss when prevailing interest rates rise, which could cause
the values of the securities to fall sharply;
|
| • |
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.
In addition, the fund’s investments in municipal securities are subject to
the risks associated with a lack of liquidity in the municipal bond
market; |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
| • |
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;
|
| • |
Restricted securities risk is the risk
that securities not registered in the U.S. under the 1933 Act, or in
non‑U.S. markets pursuant to similar regulations, including
“Section 4(a)(2)” securities and “Rule 144A” securities, are
restricted as to their resale. Such securities may not be listed on an
exchange and may have no active trading market. The prices of these
securities may be more difficult to determine than publicly traded
securities and these securities may involve heightened risk. They also may
be more difficult to purchase or sell at an advantageous time or price.
The fund may not be able to sell a restricted security when the
sub‑adviser considers it desirable to do so and/or may have to sell the
security at a lower price thank the fund believes is its fair market
value. In addition, transaction costs may be higher and the fund may
receive only limited information regarding the issuer;
|
| • |
Small-cap company risk arises because
small-cap companies involve greater risks than investing in
large-capitalization companies. Small-cap companies generally have lower
volume of shares traded daily, less liquid stock, a more volatile share
price, a limited product or service base, narrower commercial markets and
more limited access to capital, compared to larger, more established
companies. These 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.
Generally, the smaller the company size, the greater these risks;
|
| • |
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;
|
| • |
U.S. Treasury obligations risk is the
risk that the value of U.S. Treasury obligations may vary due to changes
in interest rates. In addition, changes to the financial condition or
credit rating of the U.S. Government may cause the value of the fund’s
investments in obligations issued by the U.S. Treasury to decline. Certain
political events in the U.S., such as a prolonged government shutdown or
potential default on the national debt, may also cause investors to lose
confidence in the U.S. Government and may cause the value of U.S. Treasury
obligations to decline; and
|
| • |
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment style.
|
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Berwyn Income Fund (the “IMST Predecessor Fund”), a series of Investment
Managers Series Trust, on July 17, 2017. The IMST Predecessor Fund acquired
the assets and liabilities of the Berwyn Income Fund (the “Berwyn Funds
Predecessor Fund,” and together with the IMST Predecessor Fund and the
Predecessor Fund, the “Predecessor Funds”), a series of The Berwyn Funds, on
April 29, 2016. As a result of the reorganizations, the fund is the
accounting successor of the Predecessor Funds. Performance results shown in the
bar chart and the performance table below reflect the performance of the IMST
Predecessor Fund for the period from April 29, 2016 through July 17,
2017, and the performance of the Berwyn Funds Predecessor Fund for the period
prior to April 29, 2016. The Predecessor Funds’ past performance, before
and after taxes, is not necessarily an indication of how the fund will perform
in the future.
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 the
returns of the Bloomberg U.S. Aggregate Bond Index and ICE BofA U.S. Cash Pay
High Yield Index, each a broad-based measure of market performance that has
characteristics relevant to the fund’s investment strategies, the Russell 3000
Value Index, an index of funds with similar investment objectives as the fund
and 25% Russell 3000 Value/55% Bloomberg US Aggregate/20% ICE BofA U.S. Cash Pay
High Yield blend, a custom index with similar investment objectives as the
fund. 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 Chartwell 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 rjinvestmentmanagement.com .
| rjinvestmentmanagement.com | 5 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
For each calendar year at NAV
| ( | ||
| Average annual total returns (for the periods ended December 31, 2022): | ||||||
| Fund return (after deduction of sales charges and expenses) | ||||||
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor Funds, as
applicable.
| One Year | Five Years | Ten Years | ||||
| Return Before Taxes | ( |
|||||
| Return After Taxes on Distributions | ( |
|||||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
|||||
| Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
| ICE BofA U.S. Cash Pay High Yield Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
| Russell 3000 Value Index (reflects no deduction for fees, expenses or taxes | ( |
|||||
| 25% Russell 3000 Value/55% Bloomberg US Aggregate/20% ICE BofA U.S. Cash Pay High Yield blend (reflects no deduction for fees, expenses or taxes) | ( |
|||||
No
one index is representative of the fund’s portfolio.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA®, T. Ryan Harkins,
CFA®, Andrew S. Toburen,
CFA®, Thomas R. Coughlin,
CFA®, CMT, Jeffrey D.
Bilsky, John M. Hopkins, CFA® and Christine F. Williams,
have served as Portfolio Managers of the fund since its inception on July 1,
2022, and are jointly and primarily responsible for the day-to-day management of
the fund. Each of the portfolio managers other than Mr. Hopkins and Ms.
Williams, served as a member of the Predecessor Fund’s portfolio management team
from March 1, 2019 to June 2022. Mr. Hopkins and Ms. Williams each served as a
member of the Predecessor Fund’s portfolio management team from March 1, 2021
through June 2022.
| 6 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL INCOME
FUND | 5.1.2023 (as supplemented
8.7.2023)
Purchase and sale of fund shares | You may
purchase, redeem, or exchange 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). 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.
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.
| rjinvestmentmanagement.com | 7 |
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
|
Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 0.90% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
| 8 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
The
fund generally invests in companies that its sub‑adviser believes to be
undervalued. The sub‑adviser’s investment approach seeks to identify companies
with favorable valuations, margin improvement, product innovations and visionary
management teams. The fund’s sub‑adviser employs a blend of value disciplines
that the sub‑adviser believes will result in consistent
performance.
The
fund may invest up to 20% of its assets in U.S. dollar denominated securities of
issuers based outside of the U.S.
The
sub‑adviser may purchase exchange-traded funds (“ETFs”) designed to track U.S.
mid‑cap indices to manage the fund’s cash holdings and gain exposure to the
types of securities in which the fund primarily invests. ETFs are investment
companies that invest in portfolios of securities, often designed to track
particular market segments or indices, the shares of which are bought and sold
on a securities exchange.
The
fund may also invest in real estate investment trusts (“REITs”). REITs are
companies that own, and typically operate, income-producing real estate or real
estate-related assets.
When
managing the fund’s portfolio, the sub‑adviser uses two basic guidelines:
(1) the investment in any single issuer (at the time of purchase) will
comprise less than 5% of the total value of the assets in the portfolio; and
(2) the investment in any one sector (at the time of purchase) will not
exceed the greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of
the total value of the assets in the portfolio. Under normal market conditions,
the sub‑adviser intends to follow these investment
guidelines.
| • |
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial 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. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in
| rjinvestmentmanagement.com | 9 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
the
US and abroad. Deteriorating economic fundamentals and unexpected increases in
interest rates may, in turn, increase the risk of default or insolvency of
particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various sectors or markets or
decrease confidence in the markets. Additionally, high public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or
industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
| • |
Equity securities are subject to market
risk. The fund may invest in the following equity securities, which may
expose the fund to the following additional
risks: |
Common
stocks. 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;
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, and are dependent upon the skills of their
managers. REITs typically incur fees that are separate from those incurred by
the fund, meaning the fund, as a shareholder, will indirectly bear a
proportionate share of a REIT’s operating
expenses;
| • |
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; |
| • |
Foreign securities 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; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. 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; |
| • |
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
sub‑adviser about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region, which may
prove to be incorrect. Investment strategies employed by the fund’s
sub‑adviser in selecting investments for the fund may not result in an
increase in the value of your investment or in overall performance equal
to other
investments; |
| • |
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;
and |
| 10 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
| • |
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment
style. |
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Berwyn Cornerstone Fund (the “IMST Predecessor Fund”), a series of
Investment Managers Series Trust, on July 17, 2017. The IMST Predecessor
Fund acquired the assets and liabilities of the Berwyn Cornerstone Fund (the
“Berwyn Funds Predecessor Fund,” and together with the IMST Predecessor Fund and
the Predecessor Fund, the “Predecessor Funds”), a series of The Berwyn Funds, on
April 29, 2016. As a result of the reorganizations, the fund is the
accounting successor of the Predecessor Funds. Performance results shown in the
bar chart and the performance table below reflect the performance of the IMST
Predecessor Fund for the period from April 29, 2016 through July 17,
2017, and the performance of the Berwyn Funds Predecessor Fund for the period
prior to April 29, 2016. The Predecessor Funds’ past performance, before
and after taxes, is not necessarily an indication of how the fund will perform
in the future. The fund’s principal investment strategies differ from those of
the Predecessor Funds; therefore, the performance and average annual total
returns shown for periods prior to the reorganization may have differed had the
fund’s current investment strategy been in effect during those
periods.
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 the returns of the Russell Midcap Value Index, a broad-based
measure of market performance that has characteristics relevant to the fund’s
investment strategies. 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 Chartwell 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 rjinvestmentmanagement.com .
For each calendar year at
NAV
| ( | ||
| rjinvestmentmanagement.com | 11 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
| Average annual total returns (for the periods ended December 31, 2022): | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fund return (after deduction of sales charges and expenses) | |||||||||||||||||||||||||||||||||||||||||||||||||
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Fund.
| One Year | Five Years | Ten Years | ||||
| Return Before Taxes | ( |
|||||
| Return After Taxes on Distributions | ( |
|||||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
|||||
| Russell Midcap Value Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA® and T. Ryan Harkins,
CFA® have served as
Portfolio Managers of the fund since its inception on July 1, 2022, and are
jointly and primarily responsible for the day-to-day management of the fund. Mr.
Dalrymple has served as Chartwell’s Managing Partner and Senior Portfolio
Manager since 1997, and served as a member of the applicable Predecessor Funds’
portfolio management teams prior to July 1, 2022. Mr. Harkins served as a
member of the Predecessor Fund’s portfolio management team from March 1, 2020
through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange shares of the fund on any business day through
your financial intermediary, by mail at Carillion 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). 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.
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.
| 12 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
| Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 0.39% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
| rjinvestmentmanagement.com | 13 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION BOND
FUND | 5.1.2023 (as supplemented
8.7.2023)
The
sub‑adviser utilizes a disciplined value, bottom‑up approach to the fixed income
market, with emphasis on building the portfolio through individual security
selection. The philosophy is implemented by assessing the credit profiles of
specific issuers through extensive credit research. The team searches out
companies that it believes will experience stable or improving credit profiles.
Securities are identified for inclusion through an analysis of historical and
relative yield spread relationships. Security characteristics such as credit
quality, structure, maturity, and liquidity are also examined. Sector
diversification and duration parameters are defined to limit market, sector and
credit risk.
The
fund will primarily own corporate bonds of U.S. domiciled companies, but can
also own securities of the U.S. Government and government-sponsored enterprises,
mortgage-backed securities, asset-backed securities, loans, and high yield bonds
and corporate bonds of non‑U.S. domiciled
companies.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to obligations of the U.S. Government,
exchange-traded fund (“ETF”) shares, money market fund shares, commercial paper,
repurchase agreements, certificates of deposit and/or bankers acceptances, as
well as other interest bearing or discount obligations. When the fund takes a
temporary defensive position, it may not achieve its investment
objective.
| • |
Credit risk arises if an issuer is unable
or unwilling, or is perceived as unable or unwilling, to meet its
financial obligations or goes
bankrupt; |
| • |
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial 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. |
| 14 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION BOND
FUND | 5.1.2023 (as supplemented
8.7.2023)
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in the US and abroad.
Deteriorating economic fundamentals and unexpected increases in interest rates
may, in turn, increase the risk of default or insolvency of particular issuers,
negatively impact market value, cause credit spreads to widen, and reduce bank
balance sheets. Any of these could cause an increase in market volatility,
reduce liquidity across various sectors or markets or decrease confidence in the
markets. Additionally, high public debt in the U.S. and other countries creates
ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or
industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
| • |
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; |
| • |
Emerging markets are generally smaller,
less developed, less liquid and more volatile than the securities markets
of the U.S. and other foreign 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; delays and disruptions in securities settlement
procedures; less stringent, or a lack of, accounting, auditing, financial
reporting and recordkeeping requirements or standards; and significant
limitations on investor rights and recourse. The governments of emerging
market countries may also be more unstable. There may be less publicly
available information about issuers in emerging markets. When investing in
emerging markets, the risks of investing in foreign securities are
heightened; |
| • |
Foreign securities 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; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. 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; |
| rjinvestmentmanagement.com | 15 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION BOND
FUND | 5.1.2023 (as supplemented
8.7.2023)
| • |
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, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
| • |
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
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
three years, a 1% increase in interest rates could be expected to result
in a 3% decrease in the value of the bond. Very low or negative interest
rates may magnify interest rate risk. During periods of very low or
negative interest rates, the fund may be unable to maintain positive
returns or pay dividends to fund
shareholders; |
| • |
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. 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. Market prices for such securities may be
volatile; |
| • |
Management and strategy risk is the risk
that the value of your investment
depends on the judgment of the fund’s sub‑adviser about the quality,
relative yield, value or market trends affecting a particular security,
industry, sector or region, which may prove to be incorrect. Investment
strategies employed by the fund’s sub‑adviser in selecting investments for
the fund may not result in an increase in the value of your investment or
in overall performance equal to other
investments; |
| • |
Mortgage- and asset-backed security risk
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. Although the value of a mortgage-backed security
may decline when interest rates rise, the converse is not necessarily
true, since in periods of declining interest rates the mortgages
underlying the security are more likely to be prepaid. When interest rates
rise, the effective duration of a fund’s mortgage-backed and asset-backed
securities may lengthen due to a drop in prepayments of the underlying
mortgages. This delay in the repayment of principal could increase the
potential for loss when prevailing interest rates rise, which could cause
the values of the securities to fall sharply;
and |
| • |
Investing in other investment companies,
including ETFs and money market funds, 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. |
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 the returns of a broad-based market index. 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 Chartwell 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 rjinvestmentmanagement.com .
| ( | ||
| 16 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION BOND
FUND | 5.1.2023 (as supplemented
8.7.2023)
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Fund.
| One Year | Since
Inception | |||
| Return Before Taxes | ( |
( | ||
| Return After Taxes on Distributions | ( |
( | ||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
( | ||
| Bloomberg 1‑3 Year U.S. Gov.’t/Credit Index (reflects no deduction for fees, expenses or taxes) | ( |
( | ||
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | Andrew S. Toburen, CFA®; Thomas R. Coughlin, CFA®, CMT; James Fox; John M.
Hopkins, CFA®; and
Christine F. Williams have served as Portfolio Managers of the fund since its
inception on July 1, 2022, and are jointly and primarily responsible for the
day-to-day management of the fund. Each of the portfolio managers served as a
member of the Predecessor Fund’s portfolio management team from its inception on
September 22, 2021, through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange 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). 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.
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.
| rjinvestmentmanagement.com | 17 |
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
| Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 0.49% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
| 18 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 5.1.2023 (as
supplemented 8.7.2023)
The
types of debt securities in which the fund primarily invests include, but will
not be limited to, U.S. dollar denominated high yield corporate bonds and notes.
The fund may invest up to 20% of its assets in U.S. dollar denominated
securities of issuers based outside of the U.S.
While
the fund may invest in securities of any maturity, the fund will normally target
an average portfolio effective duration, as estimated by the fund’s sub‑adviser,
of less than three years. Duration is a measure of the underlying portfolio’s
price sensitivity to changes in prevailing interest rates. The longer a
security’s duration, the more sensitive its price will be to changes in interest
rates. For example, the approximate percentage decrease in the price of a
security with a three-year duration would be 3% in response to a 1% increase in
interest rates.
In
pursuing the fund’s investment objective, the fund’s sub‑adviser seeks to
identify securities of companies with stable cash flows and proven and
established business models in an effort to manage the amount of credit,
interest rate, liquidity and other risks, presented by these securities.
The
sub‑adviser may purchase exchange-traded funds (“ETFs”) designed to track fixed
income securities indices to manage the fund’s cash holdings. ETFs are
investment companies that invest in portfolios of securities, often designed to
track particular market segments or indices, the shares of which are bought and
sold on a securities exchange. The ETFs in which the fund invests may invest
substantially all of their assets in high yield debt securities. Such ETFs are
taken into account when determining how much of the fund’s net assets have been
invested in high yield securities.
| • |
Market Risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial 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.
|
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in the US and abroad.
Deteriorating economic fundamentals and unexpected increases in interest rates
may, in turn, increase the risk of default or
| rjinvestmentmanagement.com | 19 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 5.1.2023 (as
supplemented 8.7.2023)
insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various sectors or markets or
decrease confidence in the markets. Additionally, high public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
| • |
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
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
three years, a 1% increase in interest rates could be expected to result
in a 3% decrease in the value of the bond. Very low or negative interest
rates may magnify interest rate risk. During periods of very low or
negative interest rates, the fund may be unable to maintain positive
returns or pay dividends to fund shareholders;
|
| • |
Credit risk arises if an issuer is unable
or unwilling, or is perceived as unable or unwilling, to meet its
financial obligations or goes bankrupt;
|
| • |
Foreign securities 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; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. 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;
|
| • |
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, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest. High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
| • |
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. 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. Market prices for such securities may be volatile;
|
| • |
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
sub‑adviser about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region, which may
prove to be incorrect. Investment strategies employed by the fund’s
sub‑adviser in selecting investments for the fund may not result in an
increase in the value of your investment or in overall performance equal
to other investments; and |
| 20 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 5.1.2023 (as
supplemented 8.7.2023)
| • |
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.
|
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Chartwell Short Duration High Yield Fund (the “IMST Predecessor Fund,”
and together with the Predecessor Fund, the “Predecessor Funds”), a series of
Investment Managers Series Trust, on July 17, 2017. As a result of the
reorganization, the fund is the accounting successor of the Predecessor Funds.
Performance results shown in the bar chart and the performance table below
reflect the performance of the IMST Predecessor Fund for the period prior to
July 17, 2017.
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 the returns of a broad-based market index. 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 Chartwell 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 rjinvestmentmanagement.com .
| ( | ||
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor Funds.
| rjinvestmentmanagement.com | 21 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 5.1.2023 (as
supplemented 8.7.2023)
| One Year | Five Years | Since Inception ( | ||||
| Return Before Taxes | ( |
|||||
| Return After Taxes on Distributions | ( |
|||||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
|||||
| ICE BofA 1‑3 Year BB US Cash Pay High Yield Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
| Bloomberg Intermediate US Government/Credit Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
No
one index is representative of the fund’s portfolio.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | Andrew S. Toburen, CFA®, John M. Hopkins, CFA®, and Christine F. Williams
have served as Portfolio Managers of the fund since its inception on July 1,
2022, and are jointly and primarily responsible for the day-to-day management of
the fund. Mr. Toburen, Mr. Hopkins and Ms. Williams served as the portfolio
managers for the Predecessor Funds from their inception on July 15, 2014 through
June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange 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). 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.
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.
| 22 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
| Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 1.05% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
| rjinvestmentmanagement.com | 23 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 5.1.2023 (as supplemented
8.7.2023)
The
fund’s sub‑adviser uses a “growth” style of management and seeks to identify
companies with above average potential for earnings growth. The fund may invest
up to 20% of its assets in U.S. dollar-denominated securities of issuers based
outside of the U.S.
The
sub‑adviser may purchase exchange-traded funds (“ETFs”) designed to track U.S.
small‑cap indices to manage the fund’s cash holdings and gain exposure to the
types of securities in which the fund primarily invests. ETFs are investment
companies that invest in portfolios of securities, often designed to track
particular market segments or indices, the shares of which are bought and sold
on a securities exchange.
When
managing the fund’s portfolio, the sub-adviser uses two basic guidelines: (1)
the investment in any single issuer (at the time of purchase) will comprise less
than 5% of the total value of the assets in the portfolio; and (2) the
investment in any one sector (at the time of purchase) will not exceed the
greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of the total
value of the assets in the portfolio. Under normal market conditions, the
sub-adviser intends to follow these investment guidelines.
| • |
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial 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.
|
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in the US and abroad.
Deteriorating economic fundamentals and unexpected increases in interest rates
may, in turn, increase the risk of default or insolvency of particular issuers,
negatively impact market value, cause credit spreads to widen, and reduce bank
balance sheets. Any of these could cause an increase in market volatility,
reduce liquidity across various sectors or markets or decrease confidence in the
markets. Additionally, high public debt in the U.S. and other countries creates
ongoing systemic and market risks and policymaking uncertainty.
| 24 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 5.1.2023 (as supplemented
8.7.2023)
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
| • |
Equity securities are subject to market
risk. The fund may invest in the following equity securities, which
may expose the fund to the following additional risks:
|
Common
stocks. 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 growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment style;
|
| • |
Foreign securities 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; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. 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;
|
| • |
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
sub‑adviser about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region, which may
prove to be incorrect. Investment strategies employed by the fund’s
sub‑adviser in selecting investments for the fund may not result in an
increase in the value of your investment or in overall performance equal
to other investments;
|
| • |
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;
|
| • |
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 similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or lower.
|
| rjinvestmentmanagement.com | 25 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 5.1.2023 (as supplemented
8.7.2023)
Health care sector risk is the risk that 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;
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. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or 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. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market prices; and
| • |
Small‑cap company risk arises because
small-cap companies involve greater risks than investing in
large-capitalization companies. Small-cap companies generally have lower
volume of shares traded daily, less liquid stock, a more volatile share
price, a limited product or service base, narrower commercial markets and
more limited access to capital, compared to larger, more established
companies. These 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.
Generally, the smaller the company size, the greater these risks.
|
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 the returns of a broad-based market index. 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 Chartwell 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 rjinvestmentmanagement.com .
For each calendar year at NAV
| ( | ||
| 26 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 5.1.2023 (as supplemented
8.7.2023)
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor Fund.
| One Year | Five Years | Since Inception ( | ||||
| Return Before Taxes | ( |
|||||
| Return After Taxes on Distributions | ( |
|||||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
|||||
| Russell 2000 Growth Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | Frank L. Sustersic,
CFA® and Theresa H. Tran,
CFA® are the Portfolio
Managers of the fund and are jointly and primarily responsible for all aspects
of the fund’s management. Mr. Sustersic and Ms. Tran have managed the fund since
July 2022. Mr. Sustersic served as the Portfolio Manager of the Predecessor Fund
from its inception in 2017 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange 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). 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.
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.
| rjinvestmentmanagement.com | 27 |
Carillon
Mutual Funds
| Class Chartwell | ||
| Maximum Sales Charge Imposed on Purchases (as a % of offering price) | ||
| Maximum Deferred Sales Charge (as a % of original purchase price or redemption proceeds, whichever is lower) | ||
| Redemption Fee | ||
| Class Chartwell | ||
| Management Fees | ||
| Distribution and Service (12b‑1) Fees | ||
| Other Expenses (a) | ||
|
Carillon
Tower Administration Fee |
||
|
Remaining
Other Expenses (a) |
||
| Total Annual Fund Operating Expenses | ||
| Fee Waiver and/or Expense Reimbursement (b) | ( | |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | ||
(a) Other Expenses are estimated for
the current fiscal year.
(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 Class Chartwell
exceed 1.05% of that class’ average daily net assets through July 1,
2024 . This expense limitation excludes interest, taxes,
brokerage commissions, costs relating to investments in other investment
companies (acquired fund fees and expenses), dividend and interest expenses on
short sales, expenses incurred in connection with any merger or reorganization,
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.
| Share Class | Year 1 | Year 3 | ||
| Class Chartwell | $ |
$ |
| 28 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
The
fund generally invests in companies that its sub‑adviser believes to be
undervalued. The sub‑adviser’s investment approach seeks to identify companies
with favorable valuations, margin improvement, product innovations and visionary
management teams. The fund’s sub‑adviser employs a blend of value disciplines
that the sub‑adviser believes will result in consistent performance.
The
fund may invest up to 20% of its assets in U.S. dollar denominated securities of
issuers based outside of the U.S. The fund may have significant exposure to the
Financials sector. However, as the sector composition of the fund’s portfolio
changes over time, the fund’s exposure to this sector may be lower at a future
date and the fund’s exposure to other market sectors may be higher. The fund may
also invest in real estate investment trusts (“REITs”). REITs are companies that
own, and typically operate, income-producing real estate or real estate-related
assets.
The
sub‑adviser may purchase exchange-traded funds (“ETFs”) designed to track U.S.
small‑cap indices to manage the fund’s cash holdings and gain exposure to the
types of securities in which the fund primarily invests. ETFs are investment
companies that invest in portfolios of securities, often designed to track
particular market segments or indices, the shares of which are bought and sold
on a securities exchange.
When
managing the fund’s portfolio, the sub-adviser uses two basic guidelines: (1)
the investment in any single issuer (at the time of purchase) will comprise less
than 5% of the total value of the assets in the portfolio; and (2) the
investment in any one sector (at the time of purchase) will not exceed the
greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of the total
value of the assets in the portfolio. Under normal market conditions, the
sub-adviser intends to follow these investment guidelines.
| • |
Market Risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer. These
conditions may include real or perceived adverse political, regulatory,
market, economic or other developments, such as natural disasters, public
health crises, pandemics, changes in federal, state or foreign government
policies, regional or global economic instability (including war,
terrorism, territorial disputes and geopolitical risks), changes in the
U.S. presidential administration and Congress, 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, and interest, inflation and
currency rate fluctuations. These and other conditions may cause broad
changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial 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.
|
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates may continue to
increase, or the timing, frequency or magnitude of any such increases.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown in the US and abroad.
Deteriorating economic fundamentals and unexpected increases in interest rates
may, in turn, increase the risk of default or
| rjinvestmentmanagement.com | 29 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various sectors or markets or
decrease confidence in the markets. Additionally, high public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen as of the date of this Prospectus. Russia’s military
invasion of Ukraine beginning in February 2022, the responses and sanctions by
the United States and other countries, and the potential for wider conflict have
had, and could continue to have, severe adverse effects on the performance and
liquidity of global markets and could negatively affect the value of the fund’s
investment. The duration of ongoing hostilities and the vast array of sanctions
and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
fund and its investments or operations could be negatively impacted. The recent
strength of the U.S. dollar could decrease foreign demand for U.S. assets, which
may negatively impact certain issuers and/or industries.
The
impact of the COVID-19 pandemic has negatively affected and could continue to
affect the economies of many nations, individual companies and the global
securities and commodities markets, including their liquidity, in ways that
cannot necessarily be foreseen as of the date of this Prospectus. Epidemics
and/or pandemics, such as the coronavirus, have and may further result in, among
other things, closing borders, extended quarantines and stay-at-home orders,
order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
| • |
Equity securities are subject to market
risk. The fund may invest in the following equity securities, which
may expose the fund to the following additional risks:
|
Common
stocks. 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;
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, and are dependent upon the skills of their
managers. REITs typically incur fees that are separate from those incurred by
the fund, meaning the fund, as a shareholder, will indirectly bear a
proportionate share of a REIT’s operating expenses;
| • |
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment style;
|
| • |
Foreign securities 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; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. 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;
|
| • |
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
sub‑adviser about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region, which may
prove to be incorrect. Investment strategies employed by the fund’s
sub‑adviser in selecting investments for the fund may not result in an
increase in the value of your investment or in overall performance equal
to other investments;
|
| • |
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;
|
| 30 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
| • |
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 similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or lower.
|
Financials sector risk is that risk that
financial services companies are subject to extensive governmental regulation,
which may limit both the amounts and types of loans and other financial
commitments they can make, the interest rates and fees they can charge, the
scope of their activities, the prices they can charge and the amount of capital
they must maintain. Profitability is largely dependent on the availability and
cost of capital funds and can fluctuate significantly when interest rates change
or due to increased competition. In addition, deterioration of the credit
markets generally may cause an adverse impact in a broad range of markets,
including U.S. and international credit and interbank money markets generally,
thereby affecting a wide range of financial institutions and markets. Securities
of financial services companies may experience a dramatic decline in value when
such companies experience substantial declines in the valuations of their
assets, take action to raise capital (such as the issuance of debt or equity
securities), or cease operations; and
| • |
Small‑cap company risk arises because
small-cap companies involve greater risks than investing in
large-capitalization companies. Small-cap companies generally have lower
volume of shares traded daily, less liquid stock, a more volatile share
price, a limited product or service base, narrower commercial markets and
more limited access to capital, compared to larger, more established
companies. These 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.
Generally, the smaller the company size, the greater these risks.
|
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Chartwell Small Cap Value Fund (the “IMST Predecessor Fund,” and together
with the Chartwell Predecessor Fund, the “Predecessor Funds”), a series of
Investment Managers Series Trust, on July 17, 2017. As a result of the
reorganization, the fund is the accounting successor of the Predecessor Funds.
Performance results shown in the bar chart and the performance table below
reflect the performance of the IMST Predecessor Fund for the period prior to
July 17, 2017. 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 the returns of a broad-based market index.
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 Chartwell 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 rjinvestmentmanagement.com .
For each calendar year at NAV
| ( | ||
| rjinvestmentmanagement.com | 31 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 5.1.2023 (as supplemented
8.7.2023)
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor Funds.
| One Year | Five Years | Ten Years | ||||
| Return Before Taxes | ( |
|||||
| Return After Taxes on Distributions | ( |
|||||
| Return After Taxes on Distributions and Sale of Fund Shares | ( |
|||||
| Russell 2000 Value Index (reflects no deduction for fees, expenses or taxes) | ( |
|||||
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Sub‑adviser | Chartwell Investment Partners,
LLC (“Chartwell”) serves as the sub‑adviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA® and T. Ryan Harkins,
CFA® have served as
Portfolio Managers of the fund since its inception on July 1, 2022, and are
jointly and primarily responsible for the day-to-day management of the fund. Mr.
Dalrymple has served as Chartwell’s Managing Partner and served as the
applicable Predecessor Fund’s Senior Portfolio Manager since its inception on
March 16, 2012. Mr. Harkins served as a member of the Predecessor Fund’s
portfolio management team from March 1, 2020 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange 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). 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.
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.
| 32 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Additional
Information About the Funds
Each
fund’s investment objective is non‑fundamental and may be changed by its Board
of Trustees without shareholder approval.
Each
fund, other than the Income Fund, has adopted a non‑fundamental policy to
invest, under normal market conditions, at least 80% of its net assets (plus the
amount of any borrowings for investment purposes) in the type of investments
described in its name, as discussed in the “Principal investment strategies”
section of each fund’s Summary. If a fund changes its 80% investment policy, a
written notice will be sent to shareholders at least 60 days in advance of the
change and this Prospectus will be supplemented.
As
a temporary defensive measure because of market, economic or other conditions,
each fund may invest up to 100% of its assets in high-quality, short term debt
instruments or may take positions that are inconsistent with its principal
investment strategies. Each fund may also invest its assets in cash, cash
equivalent securities, repurchase agreements or money market instruments as a
temporary defensive measure. To the extent that a fund takes such a temporary
defensive position, its ability to achieve its investment objective may be
affected adversely.
Additional
Information Regarding Investment Strategies
Carillon Chartwell Income Fund | The fund may
invest in corporate bonds, U.S. Treasury bills, bonds and notes, debt securities
issued by U.S. Government agencies, preferred stocks, asset-backed securities,
mortgage-backed securities, municipal bonds, master limited partnerships, and
dividend-paying common stocks, including securities issued by real estate
investment trusts (“REITs”) and exchange-traded funds (“ETFs”). Certain of the
fund’s investments in corporate bonds and preferred stocks may be convertible
into common stocks. The fund invests in securities that the sub‑adviser believes
are undervalued. The fund may invest any percentage of its net assets in the
foregoing securities as the sub‑adviser deems appropriate, except that the
sub‑adviser will not purchase a common stock if it would cause the aggregate
value of the common stocks that the fund owns to exceed 30% of the fund’s net
assets. The sub‑adviser is not required to sell any common stocks owned by the
fund if the value of the common stocks exceeds 30% of net assets due to
appreciation of the common stocks or depreciation of the fund’s other
securities.
When
selecting corporate bonds, the sub‑adviser will consider the rating the bond has
received from S&P, Moody’s or Fitch. The sub‑adviser has the discretion to
invest in bonds with any rating as long as the issuer is not in default in the
payment of interest or principal. The sub‑adviser may invest in fixed income
securities of any maturity or credit rating including below investment grade
securities. Investment grade securities are those rated in the Baa3 or higher
categories by Moody’s, or in the BBB‑ or higher categories by S&P or Fitch
or, if unrated by S&P, Moody’s or Fitch, determined by the sub‑adviser to be
of comparable credit quality. Below-investment grade securities, commonly
referred to as “junk bonds” or “high yield securities,” are securities rated
below investment grade by at least one of Moody’s, S&P or Fitch (or, if
unrated, determined by the sub‑adviser to be of comparable credit quality). The
sub‑adviser may purchase bonds in private transactions that qualify under Rule
144A of the Securities Act of 1933 (the “1933 Act”). Additionally, the
sub‑adviser may purchase securities that are not registered under the 1933 Act
and securities issued in non‑U.S. markets subject to similar regulations,
including Section 4(a)(2) securities and Rule 144A securities, which are
subject to restrictions on resale.
The
fund invests only in the corporate bonds of those issuers that, in the opinion
of the sub‑adviser, have sufficient net worth and operating cash flow to repay
principal and make timely interest payments. A corporate bond is an
interest-bearing debt security issued by a corporation. For fixed rate bonds,
the issuer has a contractual obligation to pay interest at a stated rate on
specific dates and to repay principal (the bond’s face value) on a specified
date. An issuer may have the right to redeem (call) a bond before maturity.
While a bond’s annual interest income established by the coupon rate may be
fixed for the life of the bond, its yield (income as a percent of current price)
will reflect current interest rate levels. The bond’s price rises and falls so
that its yield remains reflective of current market conditions. The sub‑adviser
will select corporate bonds primarily on the basis of current yield and
secondarily on the basis of anticipated long term return. The duration of bonds
purchased by the fund will usually vary from three to seven years. The
sub‑adviser has the discretion to vary the duration of the portfolio in order to
seek to take advantage of prevailing trends in interest rates. The fund
generally invests in the fixed-income securities of large-capitalization
companies.
The
fund may invest in common stocks, subject to the 30% limit described above, and
in preferred stocks when the sub‑adviser deems it appropriate. The portfolio
allocations to preferred and common stocks are determined by the sub‑adviser
based upon its evaluation of the bond market. The outlook for the economy
generally is also a consideration. During periods of economic strength, greater
emphasis may be placed on preferred and common stocks than on other investments.
Preferred stocks are generally selected based on one of two criteria:
(1) preferred stocks that the sub‑adviser believes are offering an above
average yield, in comparison to other preferred stocks of the same quality; and
(2) preferred stocks that the sub‑adviser believes offer the potential for
capital appreciation due to the business prospects of the issuers. The fund may
also purchase preferred stocks in private transactions that qualify under Rule
144A of the 1933 Act. The fund may invest in equity securities of any market
capitalization.
Common
stocks are generally selected based on one of three value-based criteria:
(1) stocks selling substantially below their book values; (2) stocks
judged by the sub‑adviser to be selling at low valuations based on their present
earnings levels; and (3) stocks judged by the sub‑adviser to have above
average
| rjinvestmentmanagement.com | 33 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
growth
prospects and to be selling at small premiums to their book values or at modest
valuations based on their present earnings levels. In addition, the fund will
only purchase common stocks that pay cash dividends; however, the fund may
purchase preferred stocks that do not have to be paying current dividends. If a
common stock stops paying dividends after its purchase by the fund, the fund
would not be required to sell the stock.
The
fund may invest in the securities of lesser-known companies. In addition, the
fund invests only in common stocks listed on national securities exchanges or
quoted on the over‑the‑counter market.
The
sub‑adviser may invest in ETFs designed to track equity and fixed income
securities indices to manage the fund’s cash holdings. ETFs are investment
companies that invest in portfolios of securities, often designed to track
particular market segments or indices, the shares of which are bought and sold
on a securities exchange. The fund may also invest in REITs. REITs are companies
that own, and typically operate, income-producing real estate or real
estate-related assets. REITs are generally classified as equity REITs, mortgage
REITs, or a combination of equity and mortgage REITs. Equity REITs invest the
majority of their assets directly in real property and derive income primarily
from the collection of rents. Equity REITs can also realize capital gains by
selling properties that have appreciated in value. Mortgage REITs invest the
majority of their assets in real estate mortgages and derive income from the
collection of interest payments.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
Carillon Chartwell Mid Cap Value Fund | Under
normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of
mid‑capitalization U.S. companies. The fund will not change this investment
policy unless it gives shareholders at least 60 days’ advance written notice.
The fund’s sub‑adviser considers mid‑capitalization companies to be those
companies that, at the time of initial purchase, have a market capitalization
within the range of the Russell Midcap Value Index during the most recent
12‑month period (which was approximately $91.1 million and
$67.3 billion as of December 31, 2022). The Russell Midcap Value Index
is reconstituted annually. Because mid‑capitalization companies are defined by
reference to an index, the range of market capitalization of companies of which
the Mid Cap Value Fund invests may vary with market conditions. The fund may
continue to hold securities of companies whose market capitalization was within
such range at the time of purchase but whose current market capitalization may
be outside of that range.
The
fund may invest up to 20% of its assets in U.S. dollar-denominated securities of
issuers based outside of the U.S.
The
sub‑adviser may purchase ETFs designed to track U.S. mid‑cap indices to manage
the fund’s cash holdings and gain exposure to the types of securities in which
the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities, often designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
The
fund may also invest in real estate investment trusts (“REITs”). REITs are
companies that own, and typically operate, income-producing real estate or real
estate-related assets. REITs are generally classified as equity REITs, mortgage
REITs, or a combination of equity and mortgage REITs. Equity REITs invest the
majority of their assets directly in real property and derive income primarily
from the collection of rents. Equity REITs can also realize capital gains by
selling properties that have appreciated in value. Mortgage REITs invest the
majority of their assets in real estate mortgages and derive income from the
collection of interest payments.
The
fund generally invests in companies that its sub-adviser believes to be
undervalued. The sub-adviser’s investment approach seeks to identify companies
with favorable valuations, margin improvement, product innovations and visionary
management teams. The fund’s sub-adviser employs a blend of value disciplines
that the sub-adviser believes will result in consistent performance. The
sub‑adviser’s investment process integrates the efforts of quantitative
analysis, fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple valuation measures, and identifying companies with valuations at
the lower end of their historical valuation ranges and that offer attractive
risk/reward characteristics.
Fundamental
analysis: The sub‑adviser conducts comprehensive business reviews
to develop a sound understanding of a company’s business. The research process
also focuses on understanding the cause of a company’s undervaluation and the
company’s ability to realize its valuation potential.
Portfolio
management: The sub‑adviser constructs the fund’s final portfolio
using a bottom‑up approach to stock selection. The sub‑adviser weighs a number
of factors including fundamentals, timing of catalysts, and growth prospects
when determining portfolio holdings.
The
sub‑adviser may sell all or a portion of a fund portfolio holding when, in its
opinion, one or more of the following occurs: (1) a stock price is at the
high end of the company’s historical range; (2) erosion of a company’s
fundamentals; (3) a more compelling alternative investment is identified;
or (4) the fund requires cash to meet redemption requests.
| 34 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
When
managing the fund’s portfolio, the sub‑adviser uses two basic guidelines:
(1) the investment in any single issuer (at the time of purchase) will
comprise less than 5% of the total value of the assets in the portfolio; and
(2) the investment in any one sector (at the time of purchase) will not
exceed the greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of
the total value of the assets in the portfolio. Under normal market conditions,
the sub‑adviser intends to follow these investment guidelines.
Carillon Chartwell Short Duration Bond Fund |
Under normal circumstances, the fund will invest at least 80% of its net assets
(plus any borrowings for investment purposes) in bonds (bonds include any debt
instrument). The fund will not change this investment policy unless it gives
shareholders at least 60 days’ advance written notice. Under normal market
conditions, the fund invests at least 75% of its net assets (plus any borrowings
for investment purposes) in investment grade short duration debt securities and
up to 25% in short duration high yield debt securities. Investment grade
securities are those rated in the Baa3 or higher categories by Moody’s Investors
Service, Inc. (“Moody’s”), or in the BBB- or higher categories by Standard &
Poor’s Ratings Services, a division of McGraw Hill Companies, Inc. (“S&P”),
or Fitch Ratings Ltd. (“Fitch”) or, if unrated, determined to be of comparable
credit quality by the fund’s sub-adviser. High yield debt securities, commonly
referred to as “junk bonds” or “below investment grade securities,” are
securities rated below investment grade by at least one of Moody’s, S&P or
Fitch or, if unrated, determined to be of comparable credit quality by the
fund’s sub-adviser. Under normal market conditions, the fund sub‑adviser expects
to primarily invest in investment grade short duration fixed income securities.
The types of debt securities in which the fund primarily invests include, but
will not be limited to, U.S. dollar denominated short duration investment grade
bonds and high yield corporate bonds. The fund may invest up to 20% of its
assets in U.S. dollar denominated securities of issuers based outside of the
U.S., including issuers in emerging markets. Under normal circumstances, the
fund will normally target an average portfolio effective duration, as estimated
by the fund’s sub‑adviser, of less than three years.
Duration
is a measure of the underlying portfolio’s prices sensitivity to changes in
prevailing interest rates. The longer a security’s duration, the more sensitive
its price will be to changes in interest rates. For example, the approximate
percentage decrease in the price of a security with a three-year duration would
be 3% in response to a 1% increase in interest rates. The fund’s sub‑adviser
normally expects to focus the fund’s investments to maintain investment grade
status and the high yield allocation to maintain a higher credit quality tier of
the overall high yield bond market. In pursuing the fund’s investment objective,
the fund’s sub‑adviser seeks to identify securities of companies with stable or
improving cash flows and proven and established business models in an effort to
manage the amount of credit, interest rate, liquidity and other risks, presented
by these securities.
Chartwell
utilizes a disciplined value, bottom‑up approach to the fixed income market,
with emphasis on building the portfolio through individual security selection.
The philosophy is implemented by assessing the credit profiles of specific
issuers through extensive credit research. The team searches out companies that
it believes will experience stable or improving credit profiles. Securities are
identified for inclusion through an analysis of historical and relative yield
spread relationships. Security characteristics such as credit quality,
structure, maturity, and liquidity are also examined. Sector diversification and
duration parameters are defined to limit market, sector and credit risk. The
fund will primarily own corporate bonds of U.S. domiciled companies, but can
also own securities of the U.S. Government and government-sponsored enterprises,
mortgage-backed securities, asset-backed securities, loans, and high yield bonds
and corporate bonds of non‑U.S. domiciled companies.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
Carillon Chartwell Short Duration High Yield
Fund | Under normal circumstances, the fund invests at least 80% of its
net assets (plus any borrowings for investment purposes) in high yield debt
securities. The fund will not change this investment policy unless it gives
shareholders at least 60 days’ advance written notice.
High
yield debt securities, also referred to as “junk” bonds, are securities rated
below the Baa3 category by Moody’s Investors Service, Inc. (“Moody’s”), or below
BBB- by Standard & Poor’s Ratings Services, a division of McGraw Hill
Companies, Inc. (“S&P”) or Fitch Ratings Ltd. (“Fitch”) at the time of
purchase or, if unrated, determined to be of comparable credit quality by the
fund’s sub-adviser. Under normal market conditions, the fund’s sub-adviser
expects to primarily invest in BB rated debt securities, the higher quality tier
of the overall high yield market, which the fund’s sub-adviser believes may
offer an opportunity for more attractive yield premiums, with a lower
probability of credit erosion relative to the high yield bond market as a whole.
The sub-adviser considers a security to be BB-rated if, at the time of purchase,
it was assigned a rating of Ba1, Ba2, Ba3 by Moody’s Investor Services, Inc., or
BB+, BB, BB- by Standard & Poor’s or Fitch, Inc., or, if unrated, it was
determined to be of comparable credit quality by the fund’s sub-adviser.
| rjinvestmentmanagement.com | 35 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
The
types of debt securities in which the fund primarily invests include, but will
not be limited to, U.S. dollar denominated high yield corporate bonds and notes.
The fund may invest up to 20% of its assets in U.S. dollar denominated
securities of issuers based outside of the U.S.
While
the fund may invest in securities of any maturity, the fund will normally target
an average portfolio effective duration, as estimated by the fund’s sub-adviser,
of less than three years. Duration is a measure of the underlying portfolio’s
price sensitivity to changes in prevailing interest rates. The longer a
security’s duration, the more sensitive its price will be to changes in interest
rates. For example, the approximate percentage decrease in the price of a
security with a three-year duration would be 3% in response to a 1% increase in
interest rates. In pursuing the fund’s investment objective, the fund’s
sub-adviser seeks to identify securities of companies with stable cash flows and
proven and established business models in an effort to manage the amount of
credit, interest rate, liquidity and other risks, presented by these securities.
The
sub‑adviser’s investment process seeks to integrate quantitative analysis,
fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening of issuers by quality,
maturity and financial criteria. Financial criteria include: earnings before
interest, taxes, depreciation, and amortization (“EBITDA”), coverage of interest
expense and capital expenditures (“CAPEX”), total leverage, projected liquidity,
and asset coverage of total debt, among other measures.
Fundamental
analysis: This research process focuses on evaluating three types
of fundamental risks with respect to each issuer: Business Risk (e.g., relative
market share, cost structure, management strength and reputation, operating
history), Financial Risk (e.g., cash flow stability, capital intensity, or the
magnitude of maintenance capital expenditures relative to cash flow, credit
ratios such as EBITDA/Interest, Debt/EBITDA, and Free Cash Flow/Debt, among
others) and Covenant Risk (e.g., form and sufficiency of security if secured,
limits on debt, limits on restricted payments such as distributions to
shareholders or affiliates, and change of control protection via a contractual
put in the event of a change of ownership, among others).
Portfolio
management: The sub‑adviser constructs the fund’s final portfolio
using a bottom‑up approach to determine whether the bonds analyzed offer
relative value in the context of its industry peers and the overall high yield
bond market. The sub‑adviser weighs a number of economic considerations (e.g.,
GDP growth, unemployment rate, housing starts, vehicle sales, among others) to
estimate a position within the economic business cycle, as well as interest rate
analysis when determining portfolio holdings.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest some or all of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. The sub-adviser may purchase exchange-traded funds
(“ETFs”) designed to track fixed income securities indices to manage the fund’s
cash holdings. ETFs are investment companies that invest in portfolios of
securities, often designed to track particular market segments or indices, the
shares of which are bought and sold on a securities exchange. The ETFs in which
the fund invests may invest substantially all of their assets in high yield debt
securities. Such ETFs are taken into account when determining how much of the
fund’s net assets have been invested in high yield securities. When the fund
takes a temporary defensive position, it may not achieve its investment
objective.
The
sub‑adviser may sell all or a portion of a position of the fund’s portfolio
holding when, in its opinion, one or more of the following occurs, among other
reasons: (1) deteriorating credit quality; (2) erosion of a company’s
fundamentals; (3) 10% relative underperformance from purchase date; (4) a
more attractive alternative investment opportunity is identified; or
(5) the fund requires cash to meet redemption requests.
Carillon Chartwell Small Cap Growth Fund |
Under normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund will not change this investment policy
unless it gives shareholders at least 60 days’ advance written notice. The
fund’s sub‑adviser considers small capitalization companies to be those with
market capitalizations that, at the time of initial purchase, have a market
capitalization generally within the range of the Russell 2000 Growth Index
during the most recent 12‑month period (which was approximately
$6.1 million and $14.5 billion as of December 31, 2022). The
Russell 2000 Growth Index is reconstituted annually. Because small
capitalization companies are defined by reference to an index, the range of
market capitalization of companies of which the fund invests may vary with
market conditions. The fund may continue to hold securities of companies whose
market capitalization was within such range at the time of purchase but whose
current market capitalization may be outside of that range.
The
fund may invest up to 20% of its assets in U.S. dollar-denominated securities of
issuers based outside of the U.S.
The
sub‑adviser may purchase ETFs designed to track U.S. small‑cap indices to manage
the fund’s cash holdings and gain exposure to the types of securities in which
the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities, often designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
| 36 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
The
fund’s sub-adviser uses a “growth” style of management and seeks to identify
companies with above average potential for earnings growth. The portfolio
managers initiate investment ideas opportunistically, when securities are
attractively valued, yet concentrate holdings in companies best positioned for
rapid growth. The sub‑adviser’s investment process integrates the efforts of
quantitative analysis, fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple parameters, and identifying companies priced with secular,
sustainable growth, a sound economic foundation and proven management expertise
and that offer attractive risk/reward characteristics.
Fundamental
analysis: The sub‑adviser conducts comprehensive business reviews
to develop a sound understanding of a company’s business. The research process
focuses on understanding the company’s business model, and the inherent
strengths and potential weaknesses of a company’s business model. The research
involves understanding the visibility and durability of a company’s growth
opportunity, while identifying catalysts that could lead to an acceleration of a
company’s growth profile.
Portfolio
management: The sub‑adviser constructs the fund’s final portfolio
using a bottom‑up approach to stock selection. The sub‑adviser then considers
the individual sector weightings within the portfolio, as well as the comparable
sector weighting within the benchmark. The final portfolio will be diversified,
investing in companies across each industrial sector. A number of factors
including fundamentals, timing of catalysts, and growth prospects are considered
when determining portfolio weightings.
The
fund may have significant exposure to the Health Care and Information Technology
sectors. However, as the sector composition of the fund’s portfolio changes over
time, the fund’s exposure to these sectors may be lower at a future date and the
fund’s exposure to other market sectors may be higher.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest some or all of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
When
managing the fund’s portfolio, the sub-adviser uses two basic guidelines: (1)
the investment in any single issuer (at the time of purchase) will comprise less
than 5% of the total value of the assets in the portfolio; and (2) the
investment in any one sector (at the time of purchase) will not exceed the
greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of the total
value of the assets in the portfolio. Under normal market conditions, the
sub-adviser intends to follow these investment guidelines.
Carillon Chartwell Small Cap Value Fund | Under
normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund will not change this investment policy
unless it gives shareholders at least 60 days’ advance written notice. The
fund’s sub‑adviser considers small capitalization companies to be those
companies that, at the time of initial purchase, have a market capitalization
within the range of the Russell 2000 Value Index during the most recent 12‑month
period (which was $4.7 million and $14.5 billion as of
December 31, 2022). The Russell 2000 Value Index is reconstituted annually.
Because small capitalization companies are defined by reference to an index, the
range of market capitalization of companies of which the fund invests may vary
with market conditions. The fund may continue to hold securities of companies
whose market capitalization was within such range, at the time of initial
purchase, but whose current market capitalization may be outside of that range.
The
fund may invest up to 20% of its assets in U.S. dollar-denominated securities of
issuers based outside of the U.S.
The
fund may have significant exposure to the Financials sector. However, as the
sector composition of the fund’s portfolio changes over time, the fund’s
exposure to this sector may be lower at a future date and the fund’s exposure to
other market sectors may be higher. The fund may also invest in real estate
investment trusts (“REITs”). REITs are companies that own, and typically
operate, income-producing real estate or real estate-related assets.
The
sub‑adviser may purchase ETFs designed to track U.S. small‑cap indices to manage
the fund’s cash holdings and gain exposure to the types of securities in which
the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
The
fund generally invests in companies that its sub-adviser believes to be
undervalued. The sub-adviser’s investment approach seeks to identify companies
with favorable valuations, margin improvement, product innovations and visionary
management teams. The fund’s sub-adviser employs a blend of value disciplines
that the sub-adviser believes will result in consistent performance. The
sub‑adviser’s investment process integrates the efforts of quantitative
analysis, fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple valuation measures, and identifying companies with valuations at
the lower end of their historical valuation ranges and that offer attractive
risk/reward characteristics.
| rjinvestmentmanagement.com | 37 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Fundamental
analysis: The sub‑adviser conducts comprehensive business reviews
to develop a sound understanding of a company’s business. The research process
also focuses on understanding the cause of a company’s undervaluation and the
company’s ability to realize its valuation potential.
Portfolio
management: The sub‑adviser constructs the fund’s final portfolio
using a bottom‑up approach to stock selection. The sub‑adviser weighs a number
of factors including fundamentals, timing of catalysts, and growth prospects
when determining portfolio holdings.
The
sub‑adviser may sell all or a portion of a fund portfolio holding when, in its
opinion, one or more of the following occurs: (1) a stock price is at the
high end of the company’s historical range; (2) erosion of a company’s
fundamentals; (3) a more compelling alternative investment is identified;
or (4) the fund requires cash to meet redemption requests.
When
the sub‑adviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
When
managing the fund’s portfolio, the sub-adviser uses two basic guidelines: (1)
the investment in any single issuer (at the time of purchase) will comprise less
than 5% of the total value of the assets in the portfolio; and (2) the
investment in any one sector (at the time of purchase) will not exceed the
greater of: (i) 150% of the benchmark sector weight, or (ii) 25% of the total
value of the assets in the portfolio. Under normal market conditions, the
sub-adviser intends to follow these investment guidelines.
More
information about the funds’ portfolio securities and investment techniques, and
the associated risks, is provided in the funds’ Statement of Additional
Information (“SAI”).
| 38 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Additional
Information About Principal Risk Factors
The
greatest risk of investing in a mutual fund is that its returns will fluctuate
and you could lose money. Turbulence in financial markets and reduced liquidity
in equity, credit and fixed income markets may negatively affect many issuers
worldwide, which could have an adverse effect on the funds. Additionally, while
the portfolio managers seek to take advantage of investment opportunities that
will maximize a fund’s investment returns, there is no guarantee that such
opportunities will ultimately benefit the fund. There is no assurance that the
portfolio managers’ investment strategy will enable a fund to achieve its
investment objective. An investment in a 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. The following table identifies the risk factors of each
fund in light of its principal investment strategies. These risk factors are
explained following the table.
The
principal risks of investing in each fund listed below are presented in
alphabetical order and not in order of importance or potential exposure. Among
other matters, this presentation is intended to facilitate your ability to find
particular risks and compare them with the risks of other funds. Each risk
summarized below is considered a “principal risk” of investing in a fund,
regardless of the order in which it appears.
| rjinvestmentmanagement.com | 39 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
| Risk | Carillon Chartwell Income Fund |
Carillon Chartwell Mid Cap Value Fund |
Carillon Chartwell Short Duration Bond Fund |
Carillon Chartwell Short Duration High Yield Fund |
Carillon Chartwell Small Cap Growth Fund |
Carillon Chartwell Small Cap Value Fund | ||||||
| Callable Securities | X | |||||||||||
| Credit | X | X | X | |||||||||
| Emerging markets | X | |||||||||||
| Equity securities | X | X | X | X | ||||||||
| Foreign securities | X | X | X | X | X | |||||||
| Growth stocks | X | |||||||||||
| High-yield securities | X | X | X | |||||||||
| Interest rate | X | X | X | |||||||||
| Large‑cap companies | X | |||||||||||
| Liquidity | X | X | X | |||||||||
| Management and strategy | X | X | X | X | X | X | ||||||
| Market | X | X | X | X | X | X | ||||||
| Master Limited Partnerships | X | |||||||||||
| Mid‑Cap companies | X | X | ||||||||||
| Mortgage- and asset-backed securities | X | X | ||||||||||
| Municipal securities | X | |||||||||||
| Other investment companies, including ETFs and money market funds | X | X | X | X | X | X | ||||||
| Restricted securities | X | |||||||||||
| Sector | X | X | ||||||||||
| Small‑cap companies | X | X | X | |||||||||
| U.S. government securities and government sponsored enterprises | X | X | ||||||||||
| U.S. Treasury obligations | X | |||||||||||
| Value stocks | X | X | X | |||||||||
| 40 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Callable Securities | A fund may invest in
fixed-income securities with call features. A call feature allows the issuer of
the security to redeem or call the security prior to its stated maturity date.
In periods of falling interest rates, issuers may be more likely to call in
securities that are paying higher coupon rates than prevailing interest rates.
In the event of a call, a fund would lose the income that would have been earned
to maturity on that security, the proceeds received by a fund may be invested in
securities paying lower coupon rates or other less favorable characteristics,
and a fund may not benefit from any increase in value that might otherwise
result from declining interest rates. Thus, a fund‘s income could be reduced as
a result of a call and this may reduce the amount of a fund’s distributions. In
addition, the market value of a callable security may decrease if it is
perceived by the market as likely to be called, which could have a negative
impact on a fund‘s total return.
Credit | A fund could lose money if the issuer,
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.
Generally, the longer the maturity and the lower the credit quality of a
security, the more sensitive it is to credit risk. The downgrade of the credit
rating of a security held by a fund may decrease its value and may make it more
difficult for the fund to sell it. Credit risk may change over the life of an
instrument. 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.
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 those associated with 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 foreign 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; delays and disruptions in securities
settlement procedures; less stringent, or a lack of, uniform accounting,
auditing, financial reporting and recordkeeping requirements or standards; less
reliable clearance and settlement, registration and custodial procedures; less
reliable access to capital; unfamiliar foreign investment structures; trading
suspensions and other restrictions on investment; and significant limitations on
investor rights and recourse, both individually and in combination with other
shareholders. The economies and governments of emerging market countries tend to
be more unstable than those of developed countries, resulting in more volatile
rates of return than the developed markets and significantly greater risk to
investors. The governments of emerging market countries may also be more
unstable and more likely to impose capital controls, nationalize a company or
industry, place restrictions on foreign ownership and on withdrawing sale
proceeds of securities from the country, intervene in the financial markets,
and/or impose burdensome taxes that could adversely affect security prices.
There may be less publicly available or less reliable information regarding
issuers in emerging markets, which can impede a fund’s ability to accurately
evaluate foreign securities. In certain emerging market countries, fraud and
corruption may be more prevalent than in developed market countries, and
investor protections may be more limited than those in other countries. It may
be difficult to obtain or enforce legal judgments against non‑U.S. companies and
non‑U.S. persons in foreign jurisdictions, through either the foreign judicial
system or through a private arbitration process. Additionally, a fund may
experience more volatile rates of return. These matters have the potential to
impact a fund’s investment objective and performance.
Equity securities | A fund’s equity securities
investments are subject to market risk. A fund may invest in the following
equity securities, which may expose a fund to the following 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 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. Common stock generally is
subordinate to preferred stock upon the liquidation or bankruptcy of the
issuing company. In the event of an issuer’s bankruptcy, there is
substantial risk that there will be nothing left to pay common
stockholders after payments, if any, to bondholders and preferred
stockholders have been made. |
| • |
Preferred Stocks. Preferred securities,
including convertible preferred securities, are subject to issuer-specific
and 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.
Distributions on preferred stocks generally are payable at the discretion
of an issuer and after required payments to bondholders. 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
|
| rjinvestmentmanagement.com | 41 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
| 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. Preferred stocks may also be subject to credit risk, which is the risk that an issuer may be unable or unwilling to meet its financial obligations. |
| • |
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.
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. Generally, a convertible security is subject to the market risks of
stocks when the underlying stock’s price is high relative to the
conversion price, and is subject to the market risks of debt securities
when the underlying stock’s price is low relative to the conversion price.
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. |
| • |
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.
Securities that pay dividends may be sensitive to changes in interest
rates, and a sharp increase in interest rates, or other market downturn,
could result in a decision to decrease or eliminate a dividend. 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. |
| • |
REITs. REITs or other real estate-related
securities are subject to the risks associated with direct ownership of
real estate, including, among other risks, 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, defaults
by mortgagors or other borrowers and tenants, lack of availability of
mortgage funds or financing, extended vacancies of properties, especially
during economic downturns, losses due to environmental liabilities, 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). Additionally, REITs are dependent on the
skills of their managers. 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. A
domestic REIT could fail to qualify for tax‑free “pass-through” of
distributed net income and net realized gains under the Internal Revenue
Code, or to maintain its exemption from registration under the 1940 Act.
|
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 be less government regulation and
supervision of foreign stock exchanges, brokers and listed companies. In
addition, there may be less public information available about foreign
companies. The unavailability and/or unreliability of public information
available may impede the fund’s ability to accurately evaluate foreign
securities. 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 issuers may utilize unfamiliar corporate organizational structures,
which can limit investor rights and recourse. Moreover, it may be difficult to
enforce contractual obligations or invoke judicial or arbitration processes
against non‑U.S. companies and non‑U.S. persons in foreign jurisdictions.
Foreign securities may be less liquid than domestic securities and there may be
delays in transaction settlement in some foreign markets. Securities of issuers
traded on foreign exchanges may be suspended, either by the issuers themselves,
by an exchange, or by government authorities. 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
| 42 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
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.
Growth stocks | Growth companies are expected
to increase their earnings at a certain rate. When these expectations are not
met, the prices of these stocks may decline, even if earnings showed an absolute
increase. Growth company stocks also typically lack the dividend yield that can
cushion stock prices in market downturns. The price of a growth company’s stock
may fail or not approach the value that has been placed on it. If a growth
investment style shifts out of favor based on market conditions and investor
sentiment, a fund could underperform funds that use a value or other non‑growth
approach to investing or have a broader investment style.
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, issuers
of junk bonds are more likely to encounter financial difficulties and to be
materially affected by these difficulties, leading to a greater risk that the
issuer will default on the timely payment of principal and interest. 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, especially when the economy is
weak or expected to become weak. If an issuer defaults, a fund may incur
additional expenses to seek recovery. Issuers of securities that are in default
or have defaulted may fail to resume principal or interest payments, in which
case a fund may lose its entire investment. 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. The higher
yields of high-yielding securities may not reflect the value of the income
stream that holders of such securities may expect, but rather the risk that such
securities may lose a substantial portion of their value as a result of their
issuer’s financial restructuring or default. Investments in high-yield
securities are inherently speculative. High yield securities carry greater
levels of call risk, credit risk and liquidity risk.
Interest rate | Generally, the value of
investments with interest rate risk, such as fixed-income securities, will move
in the opposite direction to movements in 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. Factors, including central bank monetary
policy, rising inflation rates, and changes in general economic conditions, may
cause interest rates to rise, perhaps significantly and/or rapidly, potentially
resulting in substantial losses to a fund. 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 eight years, a 1% increase in interest rates could be expected to
result in an 8% decrease in the value of the bond. Very low or negative interest
rates may magnify interest rate risk. During periods of very low or negative
interest rates, the fund may be unable to maintain positive returns or pay
dividends to fund shareholders. Certain European countries and Japan have
experienced negative interest rates on deposits and debt securities have traded
at negative yields. Changing interest rates, including rates that fall below
zero, may have unpredictable effects on markets, may result in heightened market
volatility and may detract from fund performance to the extent the fund is
exposed to such interest rates.
Large‑cap companies | Investments in large‑cap
companies may underperform other segments of the market, in some cases for
extended periods of time, because such companies may be less responsive to
competitive challenges and opportunities, such as changes in technology and
consumer tastes. Large‑cap companies generally are expected to be less volatile
than companies with smaller market capitalizations. However, large‑cap companies
may be unable to attain the high growth rates of successful smaller companies,
especially during periods of economic expansion, and may instead focus their
competitive efforts on maintaining or expanding their market share.
Liquidity | Liquidity risk is the possibility
that trading activity in certain securities may, at times, be significantly
hampered. At times, a fund’s securities may have limited marketability, be
subject to restrictions on resale, be difficult or impossible to purchase or
sell at favorable times or prices, or become less liquid in response to market
developments or adverse credit events that may affect issuers or guarantors of a
debt security, any of which could have the effect of decreasing the overall
level of the fund’s liquidity. The market prices for such securities may be
volatile. An inability to sell a portfolio position can adversely affect a
fund’s NAV or prevent a fund from being able to take advantage of other
investment opportunities. A fund could lose money if it cannot sell a security
at the time and price that would be most beneficial to a fund. A 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 a fund. Market
developments may cause a 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. For example, liquidity risk
may be magnified in rising interest rate environments due to higher than normal
redemption rates.
| rjinvestmentmanagement.com | 43 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Management and Strategy | The value of your
investment depends on the judgment of the sub‑adviser about the quality,
relative yield, value or market trends affecting a particular security,
industry, sector or region, which may prove to be incorrect. Investment
strategies employed by the sub‑adviser in selecting investments for a fund may
not result in an increase in the value of your investment or in overall
performance equal to other investments.
Market | Markets may at times be volatile and
the values of a fund’s stock and fixed income holdings, as well as the income
generated by a fund’s fixed income holdings, may decline, sometimes
significantly and/or rapidly, because of adverse issuer-specific conditions or
general market conditions, including a broad stock market decline, which are not
specifically related to a particular issuer. These conditions may include real
or perceived adverse political, regulatory, market, economic or other
developments, such as natural disasters, public health crises, pandemics,
regional or global economic instability and interest, inflation and currency
rate fluctuations. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions concerning
these developments or adverse investment sentiment generally. These events may
lead to periods of volatility, which may be exacerbated by changes in market
size and structure. Changes in the financial condition of a single issuer,
industry or market segment also can impact the market as a whole. 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. Adverse market conditions may be prolonged and may
not have the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets, multiple
asset classes may decline in value simultaneously. Changes in value may be
temporary or may last for extended periods. During times of market turmoil,
investors tend to look to the safety of securities issued or backed by the U.S.
Treasury, causing the prices of these securities to rise and the yields to
decline. Reduced liquidity in fixed income and credit markets may negatively
affect many issuers worldwide. Prices in many financial markets have increased
significantly over the last decade, but there have also been periods of adverse
market and financial developments and cyclical change during that timeframe,
which have resulted in unusually high levels of volatility in domestic and
foreign financial markets that has caused losses for investors and may occur
again in the future, particularly if markets enter a period of uncertainty or
economic weakness. Periods of unusually high volatility in the financial markets
and restrictive credit conditions, sometimes limited to a particular sector or
geographic region, continue to recur. Even when securities markets perform well,
there is no assurance that the investments held by a fund will increase in value
along with the broader market.
The
increasing interconnectedness of markets around the world may result in many
markets being affected by events in a single country or events affecting a
single or small number of issuers. Events such as natural disasters, public
health crises, pandemics, governments’ reactions to and public perceptions
concerning these developments, and adverse investor sentiment could cause
uncertainty in the markets and may adversely affect the performance of the
global economy. Terrorism and related geopolitical risks, including tensions or
open conflict between nations, or political or economic dysfunction within some
nations that are major players on the world stage or major producers of oil 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.
Likewise, systemic market dislocations of the kind that occurred during the
financial crisis in 2008, if repeated, could be highly disruptive to economies
and markets, adversely affecting individual companies and industries, securities
markets, interest rates, credit ratings, inflation, investor sentiment and other
factors affecting the value of a fund’s investments.
Political
and diplomatic events within the United States and abroad, such as changes in
the U.S. presidential administration and Congress and domestic political unrest,
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 severity or duration
of adverse economic conditions may also be affected by policy changes made by
government or quasi-governmental organizations.
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, the execution of ransomeware and other cyberattacks,
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 financial
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.
Recent Market Events | Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in a fund may be increased. Although interest rates were unusually
low in recent years in the U.S. and abroad, in 2022, the U.S. Federal Reserve
and certain foreign central banks began to raise interest rates as part of their
efforts to address rising inflation. In addition, ongoing inflation pressures
from tight labor markets and supply chain disruptions could continue to cause an
increase in interest rates and/or negatively impact companies. It is difficult
to accurately predict the pace at which increase interest rates may increase, or
the timing, frequency or magnitude of any such increases in interest rates.
Additionally, various economic and political factors, such as rising inflation
rates, could cause the Federal Reserve or other foreign banks to change their
approach in the future as such actions may result in an economic slowdown in
both the U.S. and abroad. Unexpected increases in interest rates could lead to
market volatility, reduce liquidity in certain sectors or markets or decrease
confidence in the markets. Deteriorating economic fundamentals and these
unexpected increases in interest rates may, in turn, increase the risk of
default or insolvency of particular
| 44 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
issuers,
negatively impact market value, increase market volatility, cause credit spreads
to widen, and reduce liquidity. Also, regulators have expressed concern that
rate increases may cause investors to sell fixed income securities faster than
the market can absorb them, contributing to price volatility. Over the longer
term, rising interest rates may present a greater risk than has historically
been the case due to the prior period of relatively low rates and the effect of
government fiscal and monetary policy initiatives and potential market reaction
to those initiatives, or their alteration or cessation. However, because there
is little precedent for this situation, it is difficult to predict the impact on
various markets of significant rate increases or other significant policy
changes.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments to
strengthen public confidence in the U.S. banking system will be effective in
mitigating the effects of financial institution failures on the economy and
restoring public confidence in the U.S. and global banking systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with the
aftermath of the United Kingdom’s departure from the European Union and the
trade agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; the possibility of
changes to some international trade agreements; tensions, war, or open conflict
between nations, such as between Russia and Ukraine or in eastern Asia;
political or economic dysfunction within some nations, including major producers
of oil; and dramatic changes in commodity and currency prices could affect the
economies of many nations, including the United States, in ways that cannot
necessarily be foreseen at the present time.
Russia’s
military invasion of Ukraine beginning in February 2022, the responses and
sanctions by the United States and other countries, and the potential for wider
conflict have had, and could continue to have, severe adverse effects on
regional and global economies and could further increase volatility and
uncertainty in the financial markets and the prices of various commodities. The
United States and other countries have imposed, and continue to impose,
broad-ranging economic sanctions on Russia and certain Russian individuals,
banking entities and corporations as a response to its invasion of Ukraine. The
United States and other countries have also imposed economic sanctions on
Belarus and may impose sanctions on other countries that provide military or
economic support to Russia. These sanctions, as well as any other economic
consequences related to the invasion, such as additional sanctions, boycotts or
changes in consumer or purchaser preferences, or cyberattacks on governments,
companies or individuals, have substantially decreased the value and liquidity
of most Russian securities and could impact securities of issuers in other
countries that are subject to economic sanctions related to the invasion. To the
extent that a fund has exposure to Russian investments or investments in other
countries affected by the invasion, a fund’s ability to price, buy, sell,
receive or deliver such investments may be impaired. In addition, any exposure
that a fund may have to counterparties in Russia or in countries affected by the
invasion could negatively impact a fund’s investments. The extent and duration
of military actions and the repercussions of such actions (including any
retaliatory actions or countermeasures that may be taken by those subject to
sanctions) are impossible to predict. These events have resulted, and could
continue to result, in significant market disruptions, including in certain
industries or sectors such as the oil and natural gas markets, and may further
strain global supply chains and negatively affect inflation and global growth.
These and any related events could significantly impact a fund’s performance and
the value of an investment in a fund beyond any direct exposure a fund may have
to Russian issuers or issuers in other countries affected by the invasion.
Certain
illnesses spread rapidly and have the potential to significantly and adversely
affect the global economy. Outbreaks such as the novel coronavirus, COVID‑19, or
other similarly infectious diseases may have material adverse impacts on a fund.
Epidemics and/or pandemics, such as the coronavirus, have and may further result
in, among other things, closing borders, extended quarantines and stay‑at‑home
orders, order cancellations, disruptions to supply chains and customer activity,
widespread business closures and layoffs, as well as general concern and
uncertainty. The impact of this virus, and other epidemics and/or pandemics that
may arise in the future, has negatively affected and may continue to affect the
economies of many nations, individual companies and the global securities and
commodities markets, including their liquidity, in ways that cannot necessarily
be foreseen at the present time. The impact of any outbreak may last for an
extended period of time.
High
public debt in the U.S. and other countries creates ongoing systemic and market
risks and policymaking uncertainty. There is no assurance that the U.S. Congress
will act to raise the nation’s debt ceiling; a failure to do so could cause
market turmoil and substantial investment risks that cannot now be fully
predicted. Unexpected political, regulatory and diplomatic events within the
U.S. and abroad may affect investor and consumer confidence and may adversely
impact financial markets and the broader economy. China’s economy, which has
been sustained in recent years largely through a debt-financed housing boom, may
be approaching the limits of that strategy and may experience a significant
slowdown as a result of debt that cannot be repaid. Due to the size of China’s
economy, such a slowdown could impact a number of other countries.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Impacts from climate
change may include significant risks to global financial assets and economic
growth. A rise in sea levels, an increase in powerful windstorms and/or a
climate-driven increase in sea levels or flooding could cause coastal properties
to lose value or become unmarketable altogether. Certain issuers, industries and
regions may be adversely affected by the impacts of climate change, including on
the demand for and the development of goods and services and related production
costs, and the impacts of legislation, regulation and international accords
related to climate change, as well as any indirect consequences of regulation or
business trends driven by climate change. Regulatory changes and divestment
movements tied to concerns about climate change could adversely affect the value
of certain land and the viability of industries whose activities or products are
seen as accelerating climate change. These losses could adversely affect, among
others, corporate
| rjinvestmentmanagement.com | 45 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
issuers
and mortgage lenders, the value of mortgage-backed securities, the bonds of
municipalities that depend on tax or other revenues and tourist dollars
generated by affected properties, and insurers of the property and/or of
corporate, municipal or mortgage-backed securities.
Master Limited Partnerships | Investing in MLPs
involves certain risks related to investing in the underlying assets of the MLPs
and risks associated with pooled investment vehicles. Investments held by MLPs
may be relatively illiquid, limiting the MLPs ‘ ability to change their
portfolios promptly in response to changes in economic or other conditions. MLPs
may have limited financial resources, their securities may trade infrequently
and in limited volume, they may be difficult to value, and they may be subject
to more abrupt or erratic price movements than securities of larger or more
broadly based companies. Holders of units in MLPs have more limited rights to
vote on matters affecting the partnership and may be required to sell their
common units at an undesirable time or price. A fund invests as a limited
partner, and normally would not be liable for the debts of an MLP beyond the
amounts a fund has contributed but it would not be shielded to the same extent
that a shareholder of a corporation would be. In certain instances, creditors of
an MLP would have the right to seek a return of capital that had been
distributed to a limited partner. The right of an MLP’s creditors would continue
even after a fund had sold its investment in the partnership. MLPs typically
invest in real estate, oil and gas equipment leasing assets, but they also
finance entertainment, research and development, and other projects. A fund’s
investments in MLPs will be limited to no more than 25% of its assets in order
for a fund to meet the requirements necessary to qualify as a “regulated
investment company” under the Internal Revenue Code of 1986, as amended.
Distributions from an MLP may consist in part of a return of the amount
originally invested, which would not be taxable to the extent the distributions
do not exceed the investor’s adjusted basis on its MLP interest. These
reductions in a fund’s adjusted tax basis in the MLP securities will increase
the amount of gain (or decrease the amount of loss) recognized by a fund on a
subsequent sale of the securities. MLPs holding credit-related investments are
subject to interest rate risk and the risk of default on payment obligations by
debt issuers. MLPs that concentrate in a particular industry or a particular
geographic region are subject to risks associated with such industry or region.
Mid‑cap companies | Investments in mid‑cap
companies generally involve greater risks than investing in large-capitalization
companies. Mid‑cap companies may have narrower commercial 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 arises in part from the potential for
mortgage failure, particularly during periods of market downturn, premature
repayment of principal, or a delay in the repayment of principal, and can
increase in an unstable or depressed housing market. Although the value of a
mortgage-backed security may decline when interest rates rise, the converse is
not necessarily true, since in periods of declining interest rates the mortgages
underlying the security are more likely to be prepaid. The reduced value of the
fund’s securities and the potential loss of principal as a result of a
mortgagor’s failure to repay would have a negative impact on the fund. If a
borrower repays the principal early, a fund may have to reinvest the proceeds at
a lower rate, thereby reducing a fund’s income. When interest rates rise, the
effective duration of a fund’s mortgage-backed and asset-backed securities may
lengthen due to a drop in prepayments of the underlying mortgages. This delay in
the repayment of principal could increase the potential for loss when prevailing
interest rates rise, which could cause the values of the securities to fall
sharply.
Municipal Securities | A municipal security’s
value, interest payments or repayment of principal could be affected by
economic, legislative or political changes. In addition, a fund’s investments in
municipal securities are subject to the risks associated with a lack of
liquidity in the municipal bond market. 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. Any failure
of municipal securities invested in by a fund to meet certain applicable legal
requirements, or any proposed or actual changes in federal or state tax law,
could cause fund distributions attributable to interest on such securities to be
taxable.
Other investment companies, including ETFs and money
market funds | Investments in the securities of other investment
companies, including money market funds and 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. A passively managed ETF may not be permitted to
sell poorly performing stocks that are included in its index.
| 46 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Restricted Securities | Securities not
registered in the U.S. under the Securities Act of 1933, as amended (the
“Securities Act”), or in non‑U.S. markets pursuant to similar regulations,
including “Section 4(a)(2)” securities and “Rule 144A” securities, are
restricted as to their resale. Such securities may not be listed on an exchange
and may have no active trading market. The prices of these securities may be
more difficult to determine than publicly traded securities and these securities
may involve heightened risk as compared to investments in securities of publicly
traded companies. They may be more difficult to purchase or sell at an
advantageous time or price because such securities may not be readily marketable
in broad public markets, or may have to be held for a certain time period before
they can be resold. The fund may not be able to sell a restricted security when
the sub‑adviser considers it desirable to do so and/or may have to sell the
security at a lower price than the fund believes is its fair market value. A
restricted security that was liquid at the time of purchase may subsequently
become illiquid. In addition, transaction costs may be higher for restricted
securities and the fund may receive only limited information regarding the
issuer of a restricted security. The fund may have to bear the expense of
registering restricted securities for resale and the risk of substantial delays
in effecting the registration. If, during such a delay, adverse market
conditions were to develop, the fund might obtain a less favorable price than
prevailed at the time it decided to seek registration of the security.
Sector | A fund may hold a significant amount
of investments in companies that are in similar businesses, which may be
similarly affected by particular economic or market events that 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. In
addition, when a fund focuses its investments in certain sectors of the economy,
its performance could fluctuate more widely than if a fund invested more evenly
across sectors. Individual sectors may be more volatile, and may perform
differently, than the broader market. As a fund’s portfolio changes over time, a
fund’s exposure to a particular sector may become higher or lower.
Financials sector | Financial services
companies are subject to extensive governmental regulation, which may limit both
the amounts and types of loans and other financial commitments they can make,
the interest rates and fees they can charge, the scope of their activities, the
prices they can charge and the amount of capital they must maintain.
Profitability is largely dependent on the availability and cost of capital funds
and can fluctuate significantly when interest rates change or due to increased
competition. In addition, deterioration of the credit markets generally may
cause an adverse impact in a broad range of markets, including U.S. and
international credit and interbank money markets generally, thereby affecting a
wide range of financial institutions and markets. Certain events in the
financial sector may cause an unusually high degree of volatility in the
financial markets, both domestic and foreign, and cause certain financial
services companies to incur large losses. Securities of financial services
companies may experience a dramatic decline in value when such companies
experience substantial declines in the valuations of their assets, take action
to raise capital (such as the issuance of debt or equity securities), or cease
operations. Credit losses resulting from financial difficulties of borrowers and
financial losses associated with investment activities can negatively impact the
sector. Insurance companies may be subject to severe price competition. Adverse
economic, business or political developments could adversely affect financial
institutions engaged in mortgage finance or other lending or investing
activities directly or indirectly connected to the value of real estate.
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 (1) heavily
dependent on patent protection and intellectual property rights and the
expiration of a patent may adversely affect their profitability,
(2) subject to extensive litigation based on product liability and similar
claims, and (3) subject to competitive forces that may make it difficult to
raise prices and, may result in price discounting. Health care companies may
also be thinly capitalized and susceptible to product obsolescence. 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.
Issuers in the health care sector include issuers having their principal
activities in the biotechnology industry or in medical laboratories and
research, which pose additional risks. A biotechnology company’s valuation can
often be based largely on the potential or actual performance of a limited
number of products and, accordingly, can be significantly affected if one of its
products proves unsafe, ineffective or unprofitable. Many biotechnology
companies invest heavily in research and development, and their products or
services may not prove commercially successful or may become obsolete quickly
due to technological change. Biotechnology companies can also be significantly
affected by technological change and obsolescence, product liability lawsuits
and consequential high insurance costs. The values of biotechnology companies
are also dependent on the development, protection and exploitation of
intellectual property rights and other proprietary information. Any impairment
of such rights may have adverse financial consequences. Biotechnology companies
are subject to regulation by, and the restrictions of, the Food and Drug
Administration, the Environmental Protection Agency, state and local
governments, and foreign regulatory authorities. A biotechnology company may be
unable to raise prices on its products or services to cover its development and
regulatory costs because of managed care pressure or price controls.
Biotechnology stocks, especially those issued by smaller, less-seasoned
companies, can be more volatile than the overall market.
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
| rjinvestmentmanagement.com | 47 |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
margins.
Information technology companies may have limited product lines, markets,
financial resources or personnel. These companies may be smaller or newer and
may have limited product lines, markets, financial resources or personnel. The
market prices of information technology related securities tend to exhibit a
greater degree of interest rate risk and market risk and may experience sharper
price fluctuations than other types of securities. These securities may fall in
and out of favor with investors rapidly, which may cause sudden selling and
dramatically lower market prices. 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.
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 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 interest rate risk, credit risk and market
risk. The rising U.S. national debt may lead to adverse impacts on the value of
U.S. Government securities due to potentially higher costs for the U.S.
Government to obtain new financing.
U.S. Treasury obligations | Securities issued
or guaranteed by the U.S. Treasury are backed by the “full faith and credit” of
the United States; however, the U.S. Government guarantees the securities only
as to the timely payment of interest and principal when held to maturity, and
the market prices of such securities may fluctuate. The value of U.S. Treasury
obligations may vary due to changes in interest rates. In addition, changes to
the financial condition or credit rating of the U.S. Government may cause the
value of a fund’s investments in obligations issued by the U.S. Treasury to
decline. Certain political events in the U.S., such as a prolonged government
shutdown or potential default on the national debt, may also cause investors to
lose confidence in the U.S. Government and may cause the value of U.S. Treasury
obligations to decline. Because U.S. Treasury securities trade actively outside
the United States, their prices may also rise and fall as changes in global
economic conditions affect the demand for these securities. The total public
debt of the U.S. as a percent of GDP has grown rapidly since the beginning of
the recent financial and market volatility as a result of the coronavirus
pandemic. Although high debt levels do not necessarily indicate or cause
economic problems, they have the potential to create systemic risks if sound
debt management practices are not implemented.
Value stocks | Investments in value stocks are
subject to the risk that their true worth may not be fully realized by the
market or that their prices may decline. 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. If a value investment style shifts out of favor based on
market conditions and investor sentiment, a fund could underperform funds that
use a non‑value approach to investing or have a broader investment style.
| 48 | rjinvestmentmanagement.com |
Management
of Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Investment
Adviser
Carillon
Series Trust (the “Trust” or the “Carillon Family of Funds”) is a Delaware
statutory trust, and is registered under the Investment Company Act of 1940, as
amended, as an open-end diversified management investment company. The Trust
offers shares in separate series (each a “fund” and collectively the “funds”),
each of which is advised by Carillon Tower Advisers, Inc. (“Carillon” or
“Manager”). On September 30, 2022, Carillon began also doing business as Raymond
James Investment Management. This did not involve any change in Carillon’s
structure, ownership, or control.
Carillon,
located at 880 Carillon Parkway, St. Petersburg, Florida 33716, serves as
investment adviser and administrator for 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, 2022, Carillon and its investment
management affiliates collectively had approximately $75.36 billion in assets
under management.
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
December 31, 2022. The table below contains the effective investment advisory
fee rate for each fund for the period from the fund’s commencement of
operations, July 1, 2022, through the fiscal year ended December 31, 2022, as a
percentage of each fund’s average daily net assets, which takes into account
breakpoints, as applicable. For funds that have breakpoints in their fee rate,
the advisory fee rate may decline as assets increase.
| Fund | Average daily net assets | Rate charged | ||
| Carillon Chartwell Income Fund | $0 to $1.75 billion | 0.40% | ||
| $1.75 billion to $3.5 billion | 0.38% | |||
| Over $3.5 billion | 0.36% | |||
| Carillon Chartwell Mid Cap Value Fund | All Assets | 0.65% | ||
| Carillon Chartwell Short Duration Bond Fund | All Assets | 0.20% | ||
| Carillon Chartwell Short Duration High Yield Fund | All Assets | 0.30% | ||
| Carillon Chartwell Small Cap Growth Fund | All Assets | 0.75% | ||
| Carillon Chartwell Small Cap Value Fund | All Assets | 0.80% |
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.
Carillon
is registered as an investment adviser under the Investment Advisers Act of
1940, as amended. Carillon is exempt from registration as a commodity trading
adviser under CFTC Regulation 4.14(a)(8) with respect to accounts other than the
funds.
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 July 1, 2024, as follows:
| Contractual Expense Limitations | ||
| Class Chartwell | ||
| Carillon Chartwell Income Fund | 0.64% | |
| Carillon Chartwell Mid Cap Value Fund | 0.90% | |
| Carillon Chartwell Short Duration Bond Fund | 0.39% | |
| Carillon Chartwell Short Duration High Yield Fund | 0.49% | |
| Carillon Chartwell Small Cap Growth Fund | 1.05% | |
| Carillon Chartwell Small Cap Value Fund | 1.05% | |
| rjinvestmentmanagement.com | 49 |
Management
of Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
For
each fund, the expense limitation excludes interest, taxes, brokerage
commissions, costs relating to investments in other investment companies
(acquired fund fees and expenses), dividend and interest expenses on short
sales, expenses incurred in connection with any merger or reorganization, and
extraordinary 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. The amount of the subadvisory fee paid by Carillon to the
sub-adviser is reduced by the amount of the fees waived and/or expenses
reimbursed by Carillon and Carillon provides to the sub‑adviser any recoupment
that Carillon receives from the funds.
Sub‑Adviser
Carillon
has selected the following sub‑adviser to provide investment advice and
portfolio management services to the funds’ portfolios:
| • |
Chartwell
Investment Partners, LLC (“Chartwell”), 1205 Westlakes Drive, Suite 100,
Berwyn, PA 19312 serves as the sub‑adviser to the Carillon Chartwell
Income Fund, Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell
Short Duration Bond Fund, Carillon Chartwell Short Duration High Yield
Fund, Carillon Chartwell Small Cap Growth Fund and Carillon Chartwell
Small Cap Value Fund. As of December 31, 2022, Chartwell had
approximately $10.5 billion of assets under management.
|
The
Subadvisory Agreement between Carillon and Chartwell provides for Carillon to
pay Chartwell a subadvisory fee pursuant to the fee rate schedule set forth in
the table above. The basis for the Board’s approval of each Subadvisory
Agreement is contained in the annual report for the 12 month period ended
December 31, 2022.
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
sub‑advisory agreements with existing or new sub‑advisers without the approval
of fund shareholders, but subject to approval by the Board. Carillon has the
ultimate responsibility for overseeing the funds’ 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 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 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 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.
Portfolio
Managers
The
following portfolio managers are responsible for the day‑to‑day management of
the investment portfolio:
| • |
Carillon
Chartwell Income Fund – David C. Dalrymple, CFA®, T. Ryan Harkins,
CFA®, Andrew S.
Toburen, CFA®,
Thomas R. Coughlin, CFA®, CMT, Jeffrey D.
Bilsky, John M. Hopkins, CFA® and Christine F.
Williams, are jointly and primarily responsible for the day‑to‑day
management of the Carillon Chartwell Income Fund.
|
David
C. Dalrymple, CFA®, has
37 years of investment experience. Mr. Dalrymple has been with Chartwell
since its inception in 1997. He has served as Chartwell’s Managing Partner and
Senior Portfolio Manager since 1997. During the past twenty years,
Mr. Dalrymple has been the lead portfolio manager of the firm’s Small Cap
Value strategy serving institutional, high net worth, and mutual fund
subadvisory clients. Mr. Dalrymple is part of a dedicated investment team
of four investment professionals. From 1991 to 1997, Mr. Dalrymple served
as Portfolio Manager at Delaware Investment Advisers, managing a small cap value
mutual fund, the Value Fund, and assisting in managing mutual funds and
institutional assets in small and mid‑cap styles. Prior to joining Delaware
Investment Advisers, Mr. Dalrymple was an assistant portfolio manager at
Lord Abbett & Co. managing mid‑cap value and small‑cap growth products.
Mr. Dalrymple holds a Bachelor of Science degree in Business Management
from Clarkson University and an MBA from Cornell University’s Johnson School and
is a Chartered Financial Analyst.
| 50 | rjinvestmentmanagement.com |
Management
of Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
T.
Ryan Harkins, CFA®, has
25 years of investment experience. Mr. Harkins is a Senior Portfolio
Manager and has been with Chartwell since 2007. Prior to joining Chartwell,
Mr. Harkins was a Portfolio Manager and Research Analyst at Credit Suisse
Asset Management where he co‑managed the firm’s small cap value strategy. From
1997 to 2000, he was an Investment Banker at Morgan Keegan & Company
where he specialized in private placements for small public and private
companies. Mr. Harkins holds a Bachelor’s degree from Duke University, an
MBA from University of Pennsylvania’s Wharton School and is a Chartered
Financial Analyst.
Andrew
S. Toburen, CFA®, has 29
years of investment experience. Mr. Toburen is a Senior Portfolio Manager
and has been with Chartwell since 1999. He is responsible for overseeing all of
the high yield fixed income assets at Chartwell. From 1994 to 1997,
Mr. Toburen was part of a team managing over $3 billion in high yield
corporate bond assets at Nomura Corporate Research and Asset Management, Inc.
Mr. Toburen holds a Bachelor’s degree in Economics from Yale University and
an MBA from Cornell University’s Johnson School of Management and is a Chartered
Financial Analyst. Mr. Toburen is a member of the CFA® Institute and the CFA® Society of Philadelphia.
Thomas
R. Coughlin, CFA®, CMT,
has 18 years of investment experience. Mr. Coughlin is a Portfolio Manager
and Senior Analyst and has been with Chartwell since 2008. Prior to joining
Chartwell, Tom was employed at Janney Montgomery Scott, LLC. He held multiple
analyst positions at Janney Montgomery Scott, LLC. Mr. Coughlin holds a
Bachelor’s degree from Swarthmore College and is a Chartered Financial Analyst
and a Chartered Market Technician.
Jeffrey
D. Bilsky, has 18 years of investment experience. Mr. Bilsky is a
Co‑Portfolio Manager and has been with Chartwell since 2015. Prior to joining
Chartwell, Mr. Bilsky was employed at Cruiser Capital, a long-short hedge
fund, where he served as a Portfolio Analyst. From 2008 to 2011, he was a Vice
President in Institutional Sales and Trading at Hudson Securities. Prior to
Hudson Securities, he spent two years at Banc of America Securities as an
Analyst in Institutional Sales and Trading. Mr. Bilsky holds a Bachelor’s
degree from University of Pennsylvania and an MBA from University of
Pennsylvania’s Wharton School.
John
M. Hopkins, CFA®, has 32
years of investment experience. Mr. Hopkins is a Portfolio Manager and
Senior Analyst and has been with Chartwell since 2007. From May of 2004 to 2007,
Mr. Hopkins worked for Collateral Processing Group, LLC where he was a
Founder and Managing Principal. From 1999 to 2003 he worked for Sunrock Capital
Corporation where he was Chief Financial Officer. From 1997 to 1999, he worked
for Chase Securities, Inc. where he was a Senior High Yield Analyst.
Mr. Hopkins holds a Bachelor’s degree in both Finance and Economics, and a
Minor in Spanish, from Pennsylvania State University and is a Chartered
Financial Analyst. Mr. Hopkins is a member of the CFA® Institute and the CFA® Society of Philadelphia.
Christine
F. Williams, has 35 years of investment experience. Ms. Williams is a
Managing Partner and Senior Portfolio Manager and has been with Chartwell since
its inception in 1997. She is responsible for overseeing all of the high grade
fixed income assets at Chartwell. From 1990 to 1997, Ms. Williams was an
Assistant Vice President in Fixed Income at Meridian Investment Company where
she was part of the fixed income team managing close to $2 billion in
assets. In addition to her tax exempt responsibilities, she managed the
Pennsylvania Municipal Mutual Fund and the General Market Personal Trust
Municipal Fund. She began her career at Merrill Lynch. Ms. Williams holds a
Bachelor’s degree in Economics from the University of Delaware and a Master’s
Degree in Finance from St. Joseph’s University. Ms. Williams is a member of
the CFA® Institute and
the CFA® Society of
Philadelphia.
| • |
Carillon
Chartwell Short Duration Bond Fund – Andrew S. Toburen, CFA, Thomas R.
Coughlin, CFA, CMT, James Fox, John M. Hopkins, CFA, and Christine F.
Williams are jointly and primarily responsible for the day‑to‑day
management of the Carillon Chartwell Short Duration Bond Fund.
|
Andrew
S. Toburen, CFA, has 29 years of investment experience. Mr. Toburen is
a Senior Portfolio Manager and has been with Chartwell since 1999. He is
responsible for overseeing all of the high yield fixed income assets at
Chartwell. From 1994 to 1997, Mr. Toburen was part of a team managing over
$3 billion in high yield corporate bond assets at Nomura Corporate Research
and Asset Management, Inc. Mr. Toburen holds a Bachelor’s degree in
Economics from Yale University and an MBA from Cornell University’s Johnson
School of Management and holds the Chartered Financial Analyst designation.
Mr. Toburen is a member of the CFA Institute and the CFA Society of
Philadelphia.
Thomas
R. Coughlin, CFA, CMT, has 18 years of investment experience.
Mr. Coughlin is a Portfolio Manager and Senior Analyst and has been with
Chartwell since 2008. Prior to joining Chartwell, Tom was employed at Janney
Montgomery Scott, LLC. He held multiple analyst positions at Janney Montgomery
Scott, LLC. Mr. Coughlin holds a Bachelor’s degree from Swarthmore College
and holds the Chartered Financial Analyst designation and is a Chartered Market
Technician.
James
Fox, has 16 years of investment experience. Mr. Fox is an Assistant
Portfolio Manager/Analyst and has been with Chartwell since 2010. From 2007 to
2010, Mr. Fox was a financial consultant for RBC Wealth Management. At
Chartwell Mr. Fox focuses on trading the front end and intermediate parts
of the credit curve for the Investment Grade Fixed Income portfolios.
Mr. Fox holds a Bachelor’s degree in Business Administration and Finance
from Loyola College of Maryland and an MBA in Business Administration and
Finance from Saint Joseph’s University.
| rjinvestmentmanagement.com | 51 |
Management
of Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
John
M. Hopkins, CFA, has 32 years of investment experience. Mr. Hopkins is a
Portfolio Manager and Senior Analyst and has been with Chartwell since 2007.
From May of 2004 to 2007, Mr. Hopkins worked for Collateral Processing
Group, LLC where he was a Founder and Managing Principal. From 1999 to 2003 he
worked for Sunrock Capital Corporation where he was Chief Financial Officer.
From 1997 to 1999, he worked for Chase Securities, Inc. where he was a Senior
High Yield Analyst. Mr. Hopkins holds Bachelor’s degrees in both Finance
and Economics, and a Minor in Spanish, from Pennsylvania State University and
holds the Chartered Financial Analyst designation. Mr. Hopkins is a member
of the CFA Institute and the CFA Society of Philadelphia.
Christine
F. Williams, has 35 years of investment experience. Ms. Williams is a
Managing Partner and Senior Portfolio Manager and has been with Chartwell since
its inception in 1997. She is responsible for overseeing all of the high grade
fixed income assets at Chartwell. From 1990 to 1997, Ms. Williams was an
Assistant Vice President in Fixed Income at Meridian Investment Company where
she was part of the fixed income team managing close to $2 billion in
assets. In addition to her tax exempt responsibilities, she managed the
Pennsylvania Municipal Mutual Fund and the General Market Personal Trust
Municipal Fund. She began her career at Merrill Lynch. Ms. Williams holds a
Bachelor’s degree in Economics from the University of Delaware and a Master’s
Degree in Finance from St. Joseph’s University. Ms. Williams is a member of
the CFA Institute and the CFA Society of Philadelphia.
| • |
Carillon
Chartwell Short Duration High Yield Fund – Andrew S. Toburen, CFA®, John M. Hopkins,
CFA®, and Christine
F. Williams are jointly and primarily responsible for the day‑to‑day
management of the Carillon Chartwell Short Duration High Yield Fund.
|
Andrew
S. Toburen, CFA®, has 29
years of investment experience. Mr. Toburen is a Senior Portfolio Manager
and has been with Chartwell since 1999. He is responsible for overseeing all of
the high yield fixed income assets at Chartwell. From 1994 to 1997,
Mr. Toburen was part of a team managing over $3 billion in high yield
corporate bond assets at Nomura Corporate Research and Asset Management, Inc.
Mr. Toburen holds a Bachelor’s degree in Economics from Yale University and
an MBA from Cornell University’s Johnson School of Management and is a Chartered
Financial Analyst. Mr. Toburen is a member of the CFA® Institute and the CFA® Society of Philadelphia.
John
M. Hopkins, CFA®, has 32
years of investment experience. Mr. Hopkins is a Portfolio Manager and
Senior Analyst and has been with Chartwell since 2007. From May of 2004 to 2007,
Mr. Hopkins worked for Collateral Processing Group, LLC where he was a
Founder and Managing Principal. From 1999 to 2003 he worked for Sunrock Capital
Corporation where he was Chief Financial Officer. From 1997 to 1999, he worked
for Chase Securities, Inc. where he was a Senior High Yield Analyst.
Mr. Hopkins holds a Bachelor’s degree in both Finance and Economics, and a
Minor in Spanish, from Pennsylvania State University and is a Chartered
Financial Analyst. Mr. Hopkins is a member of the CFA® Institute and the CFA® Society of Philadelphia.
Christine
F. Williams, has 35 years of investment experience. Ms. Williams is a
Managing Partner and Senior Portfolio Manager and has been with Chartwell since
its inception in 1997. She is responsible for overseeing all of the high grade
fixed income assets at Chartwell. From 1990 to 1997, Ms. Williams was an
Assistant Vice President in Fixed Income at Meridian Investment Company where
she was part of the fixed income team managing close to $2 billion in
assets. In addition to her tax exempt responsibilities, she managed the
Pennsylvania Municipal Mutual Fund and the General Market Personal Trust
Municipal Fund. She began her career at Merrill Lynch. Ms. Williams holds a
Bachelor’s degree in Economics from the University of Delaware and a Master’s
Degree in Finance from St. Joseph’s University. Ms. Williams is a member of
the CFA® Institute and
the CFA® Society of
Philadelphia.
| • |
Carillon
Chartwell Mid Cap Value Fund and Carillon Chartwell Small Cap Value Fund –
David C. Dalrymple, CFA®, and T. Ryan Harkins,
CFA®, are jointly
and primarily responsible for the day‑to‑day management of the Carillon
Chartwell Mid Cap Value Fund and Carillon Chartwell Small Cap Value Fund.
|
David
C. Dalrymple, CFA®, has
37 years of investment experience. Mr. Dalrymple has been with Chartwell
since its inception in 1997. He has served as Chartwell’s Managing Partner and
Senior Portfolio Manager since 1997. During the past twenty years,
Mr. Dalrymple has been the lead portfolio manager of the firm’s Small Cap
Value strategy serving institutional, high net worth, and mutual fund
subadvisory clients. Mr. Dalrymple is part of a dedicated investment team
of four investment professionals. From 1991 to 1997, Mr. Dalrymple served
as Portfolio Manager at Delaware Investment Advisers, managing a small cap value
mutual fund, the Value Fund, and assisting in managing mutual funds and
institutional assets in small and mid‑cap styles. Prior to joining Delaware
Investment Advisers, Mr. Dalrymple was an assistant portfolio manager at
Lord Abbett & Co. managing mid‑cap value and small‑cap growth products.
Mr. Dalrymple holds a Bachelor of Science degree in Business Management
from Clarkson University and an MBA from Cornell University’s Johnson School and
is a Chartered Financial Analyst.
T.
Ryan Harkins, CFA®, has
25 years of investment experience. Mr. Harkins is a Senior Portfolio
Manager and has been with Chartwell since 2007. Prior to joining Chartwell,
Mr. Harkins was a Portfolio Manager and Research Analyst at Credit Suisse
Asset Management where he co‑managed the firm’s small cap value strategy. From
1997 to 2000, he was an Investment Banker at Morgan Keegan & Company
where he specialized in private placements for small public and private
companies. Mr. Harkins holds a Bachelor’s degree from Duke University, an
MBA from University of Pennsylvania’s Wharton School and is a Chartered
Financial Analyst.
| 52 | rjinvestmentmanagement.com |
Management
of Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
| • |
Carillon
Chartwell Small Cap Growth Fund – Frank L. Sustersic, CFA® and Theresa H. Tran,
CFA® are jointly
and primarily responsible for the day-to-day management of the Carillon
Chartwell Small Cap Growth Fund. |
Frank
L. Sustersic, CFA®, has
34 years of investment experience. Mr. Sustersic earned a Bachelor of
Science degree in Economics from The University of Pennsylvania and holds a
Chartered Financial Analyst designation. From 2014 to February 2016,
Mr. Sustersic worked as a Portfolio Manager at Lazard Asset Management.
Prior to that, he worked as a Portfolio Manager at Turner Investments from 1994
to March 2014. In addition, Mr. Sustersic worked as a Portfolio Manager at
First Fidelity Bank Corporation from 1989 to April 1994. Mr. Sustersic is a
member of the CFA®
Institute and the CFA®
Society of Philadelphia.
Theresa
H. Tran, CFA®, has 19
years of investment experience. Ms. Tran earned a Bachelor of Business
Administration degree from Temple University, Fox School of Business and holds a
Chartered Financial Analyst designation. From 2020 to June 2022, Ms. Tran worked
as an Equity Research Analyst at Voya Investment Management. Prior to that, she
worked as an Investment Analyst from 2017 to March 2020 at Chartwell. In
addition, Ms. Tran was previously employed at Merck & Co., Inc. from 2016 –
August 2017 where she served as Associate Director of Strategy and Planning;
American Century Investments from 2015 – May 2016 where she served as an
Investment Analyst; Turner Investments from 2007 – May 2014 where she served as
an Analyst; and Towers Watson from 2004 to June 2007 where she served as a
Health and Welfare Associate. Ms. Tran is a member of the CFA® Institute and the CFA® Society of Philadelphia.
Additional
information about portfolio manager compensation, other accounts managed by the
portfolio managers, and portfolio manager ownership of fund shares is found in
the SAI.
| rjinvestmentmanagement.com | 53 |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Distributor
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.
Rule
12b‑1 Distribution Plan
Each
fund has adopted a Distribution and Servicing Plan for the Class Chartwell
shares pursuant to Rule 12b‑1 under the 1940 Act. The distribution plan allows 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. The
funds currently do not incur any direct distribution expenses related to
Class Chartwell shares. However, Carillon or any third party may make
payments for the sale and distribution of Class Chartwell 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 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.
| 54 | rjinvestmentmanagement.com |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
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. The funds may reimburse Carillon for making payments to financial
intermediaries for certain sub‑transfer agency and shareholder services, subject
to limits established by the Board of Trustees.
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.
| rjinvestmentmanagement.com | 55 |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Your
Investment
Purchasing
Fund Shares
The
funds offer one share class. To purchase shares of a fund, you must invest at
least the minimum amount for such fund indicated in the following table.
| Minimum Investments | To Open Your Account |
To Add to Your Account | ||
| Direct Regular Accounts | $1,000 | No Minimum | ||
| Direct Retirement Accounts | $500 | No Minimum | ||
| Automatic Investment Plan | $50 | $50 |
Class Chartwell
shares have no initial sales charge, deferred sales charge or 12b‑1 fees. There
are no restrictions on the type of investor that may invest in
Class Chartwell shares. If you purchase Class Chartwell shares through
a financial intermediary, they may charge additional fees and may require higher
minimum investments or impose other restrictions on buying and selling
Class Chartwell shares. From time to time, a financial intermediary may
modify or waive the initial and subsequent investment minimums. You may make an
initial investment in an amount greater than the minimum amounts shown in the
preceding table and a fund may, from time to time, reduce or waive the minimum
initial investment amounts. The minimum initial investment amount is
automatically waived for Class Chartwell shares purchased by Trustees of
the Trust and current or retired directors and employees of Chartwell and its
affiliates.
To
the extent allowed by applicable law, the funds reserve the right to discontinue
offering Class Chartwell shares at any time or to cease operating entirely.
Additional
subscriptions in Class Chartwell shares generally may be made by investing
at least the minimum amount shown in the table above. Exceptions may be made at
a fund’s discretion. The minimum additional investment amount is automatically
waived for shares purchased by Trustees of the Trust and current or retired
directors and employees of Chartwell and its affiliates.
How
To Invest
There
are several ways to invest, although the availability of these services may be
limited by your financial adviser or institution.
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place a purchase request.
Through your financial adviser | You may
invest in a fund by contacting your financial adviser. Your financial adviser
can help you open a new account, review your financial needs and formulate
long-term investment goals and objectives. Your financial adviser or broker will
transmit your request to a fund and may charge you a fee for this service. Your
broker may also designate other intermediaries to receive orders on a fund’s
behalf. Availability of these options may be limited by your financial adviser
or institution.
By mail | You may invest in a fund by
completing and signing an account application from your financial adviser,
through our website, rjinvestmentmanagement.com, or by telephone (800.421.4184).
Indicate the fund and the amount you wish to invest. Checks must be in U.S.
dollars drawn on an account at a U.S. bank and made payable to the specific fund
being purchased. The funds will not accept payment in cash or money orders. The
funds also do not accept third party checks, Treasury checks, credit card
checks, traveler’s checks or starter checks for the purchase of shares. The
funds are unable to accept post-dated checks or any conditional order or
payment. Mail the application and your payment to:
|
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 |
| 56 | rjinvestmentmanagement.com |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Note:
The funds do not consider the U.S. Postal Service or other independent delivery
services to be their agents. Therefore, deposit in the mail or with such
services, or receipt at U.S. Bancorp Fund Services, LLC’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
transfer agent of the funds. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s offices.
The
transfer agent will charge a $25 fee against a shareholder’s account, in
addition to any loss sustained by the funds, for any payment that is returned.
It is the policy of the funds not to accept applications under certain
circumstances or in amounts considered disadvantageous to shareholders. The
funds reserve the right to reject any application.
By telephone | You can make additional
purchases by telephone by calling (800.421.4184). You must have banking
information established on your account prior to making a purchase. Your bank
account must be in the same name as your Carillon account. This method cannot be
used to open a new account. Your first telephone purchase can occur no earlier
than 7 business days after the account was opened. During periods of high market
activity, shareholders may encounter higher than usual call wait times. Please
allow sufficient time to place your telephone transaction. Once a telephone
transaction has been placed, it cannot be canceled or modified after the close
of regular trading on the New York Stock Exchange (“NYSE”) (generally, 4:00
p.m., Eastern Time).
Through our website | You can make additional
purchases through our website, rjinvestmentmanagement.com. You must have banking
information established on your account prior to making a purchase. Your bank
account must be in the same name as your Carillon account. This method cannot be
used to open a new account. Once an online transaction has been placed, it
cannot be canceled or modified. Online trades must be received by or prior to
the close of regular trading on the NYSE, which is typically 4:00 p.m. ET.
By periodic investment program | We offer
several plans to allow you to make regular, automatic investments into a fund.
You determine the amount and frequency of your investments. You can terminate
your plan at any time. Any request to change or terminate your periodic
investment program should be submitted to the transfer agent at least 5 days
prior to the effective date. Availability of these plans may be limited by your
financial adviser or institution.
| • |
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
clearinghouse 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 Carillon. These exchanges are subject
to the exchange requirements discussed below. |
The
intent of these plans is to encourage you to increase your account balance to a
fund’s minimum investment. If you discontinue any of these plans, or make
regular withdrawals from your account without maintaining the minimum balance,
we may require you to buy more shares to keep your account open or we may close
your accounts.
By direct deposit | For Class Chartwell shares,
you may instruct your employer, insurance company, the federal government or
other organization to direct all or part of the payments you receive to your
account. All payments from the federal government, including payroll, pension,
Social Security, and income tax refunds are eligible for this service. The
following information must be provided to the payor in the enrollment process:
U.S.
Bank NA
Milwaukee,
WI
ABA#
075000022
Depositor
#88- _ _ _ _ ‑0‑ _ _ _ _ _ _ _ _ _ _
Fund
Number Account Number
The
account must be designated as a checking account. Please note that these
instructions are different than the Federal Reserve wire instructions.
By wire | If you are making your first
investment, before you wire funds, the transfer agent must have a completed
account application. You may mail or overnight deliver your account application
to the transfer agent. Upon receipt of your completed account application, the
transfer agent will establish an account for you. The account number assigned
will be required as part of the instruction that should be provided to your bank
to send the wire. Your bank must include the name and class of the fund you are
purchasing, the account number, and your name so that monies can be correctly
applied. Your bank should transmit funds by wire to:
U.S.
Bank N.A.
777
East Wisconsin Avenue
Milwaukee,
WI 53202
ABA
#075000022
| rjinvestmentmanagement.com | 57 |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
|
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) |
Before
sending your wire, please contact the transfer agent at 800.421.4184 to advise
of your intent to wire funds. This will ensure prompt and accurate credit upon
receipt of your wire. Wired funds must be received prior to 4:00 p.m. ET to be
eligible for same day pricing. The funds and the transfer agent are not
responsible for the consequences of delays resulting from the banking or Federal
Reserve wire system, or from incomplete wiring instructions.
How
To Sell Your Investment
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place a redemption request.
You
can sell (redeem) Class Chartwell shares of your fund for cash at any time,
subject to certain restrictions. When you sell shares, payment of the proceeds
generally will be made the next business day after your request is received in
good order and, in any event, no later than seven days after your request is
received in good order regardless of payment type. If you sell shares that were
recently purchased by check or ACH deposits, payment will be delayed until we
verify that those funds have cleared, which may take up to 12 calendar days.
Shareholders can avoid this delay by utilizing the wire purchase option. The
funds reserve the right to suspend redemptions or postpone the date of payment
for more than seven days (i) when the NYSE is closed (other than for
customary weekend and holiday closings); (ii) when trading on the NYSE is
restricted; (iii) when the SEC determines that an emergency exists so that
disposal of a fund’s investments or determination of its NAV is not reasonably
practicable; or (iv) by order of the SEC for protection of a fund’s
shareholders. Shares are not subject to a redemption fee.
Shareholders
who hold shares through an IRA or other retirement plan must indicate on their
written redemption requests whether to withhold federal income tax. Redemption
requests failing to indicate an election not to have that tax withheld will
generally be subject to 10% withholding thereof. Shares held in an IRA or other
retirement plan accounts may be redeemed by telephone at 800.421.4184. Investors
will be asked whether or not to withhold taxes from any distribution.
You
may contact your financial adviser or the funds’ transfer agent with
instructions to sell your investment in the following ways. Availability of
these options may be limited by your financial adviser or institution.
Through your financial adviser | You may
sell your shares through your financial adviser who can prepare the necessary
documentation. Your financial adviser will transmit your request to sell shares
of your fund and may charge you a fee for this service. Availability of these
options may be limited by your financial adviser or institution.
By telephone | You may sell shares by telephone
by calling 800.421.4184 prior to the close of regular trading on the NYSE, which
is typically 4:00 p.m. ET. If you do not wish to have telephone redemption
privileges, you must complete the appropriate section of the account
application.
When
redeeming shares by telephone, payment of less than $100,000 can be made in one
of the following ways:
| • |
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. |
Once
a telephone transaction has been placed, it cannot be canceled or modified after
the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time).
During periods of high market activity, shareholders may encounter higher than
usual call wait times. Please allow sufficient time to place your telephone
transaction. If you are unable to reach the funds by telephone, you may sell
shares of the funds by sending a written redemption request to the transfer
agent (see the “In writing” section below).
In writing | You may sell shares of a fund by
sending a written redemption request to the transfer agent at the address below.
Your request should be in good order and should specify the fund name, your
account number, the name(s) in which the account is registered and the dollar
value or number of shares you wish to sell. Additional documentation may be
required for sales of shares held in corporate, partnership or fiduciary
accounts. Contact the transfer agent at 800.421.4184 with questions on required
documentation.
| 58 | rjinvestmentmanagement.com |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
|
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 |
Note:
The funds do not consider the U.S. Postal Service or other independent delivery
services to be their agents. Therefore, deposit in the mail or with such
services, or receipt at U.S. Bancorp Fund Services, LLC’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
transfer agent of the funds. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s offices.
The
transfer agent may require a signature guarantee for certain redemption
requests. A signature guarantee assures that your signature is genuine and
protects you from unauthorized account redemptions. A signature guarantee, from
either a Medallion program member or a non‑Medallion program member, of each
owner is required in the following situations:
| • |
When
ownership is being changed on your account; |
| • |
When
redemption proceeds are payable to or sent to any person, address or bank
account not on record; |
| • |
When
a redemption request is received by the transfer agent and the account
address has changed within the last 30 calendar days; and/or
|
| • |
For
redemptions in excess of $100,000, with the exception of directly traded
business or omnibus accounts, to existing instructions on file.
|
In
addition to the situations described above, the funds and/or transfer agent
reserve the right to require a signature guarantee in other instances based on
the circumstances relative to the particular situation.
Signature
guarantees will generally be accepted from domestic banks, brokers, dealers,
credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations, as well as from
participants in the NYSE Medallion Signature Program and the Securities Transfer
Agents Medallion Program (“STAMP”). A notary public is not an acceptable
signature guarantor.
Non‑financial
transactions, including establishing or modifying certain services on an
account, may require a signature guarantee or signature verification from a
Signature Validation Program member or other acceptable form of authentication
from a financial institution source.
The
funds reserve the right to waive any signature requirement at their discretion.
Through our website | For certain accounts, you may sell shares
through our website, rjinvestmentmanagement.com, prior to the close of regular
trading on the NYSE, which is typically 4:00 p.m. ET.
When
redeeming shares through our website, payment of less than $100,000 can be made
in one of the following ways:
| • |
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. |
Once
an online transaction has been placed, it cannot be canceled or modified.
Systematic withdrawal plan | You may establish
a plan for periodic withdrawals from your account. Withdrawals can be made on
the 1st, 5th, 10th, or 20th day of the month at monthly, quarterly, semi-annual
or annual intervals. If such a day falls on a weekend or holiday, the withdrawal
will take place on the next business day. To establish a plan, complete the
appropriate section of the account application or the Carillon Systematic
Withdrawal Plan Request form (available from your financial adviser, the funds
or through our website, rjinvestmentmanagement.com) and send that form to the
transfer agent. The funds reserve the right to cancel systematic withdrawals if
insufficient shares are available for two or more consecutive months.
If
you elect this method of redemption, a check will be sent to your address of
record, or payment will be made via electronic funds transfer through the ACH
network directly to your bank account. For payment through the ACH network, your
bank must be an ACH member and your bank account information must be maintained
on your fund account. The systematic withdrawal plan may be terminated at any
time by the funds. You may also elect to terminate your participation in the
systematic withdrawal plan at any time by contacting the transfer agent at least
five days prior to the next withdrawal.
| rjinvestmentmanagement.com | 59 |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
A
withdrawal under the systematic withdrawal plan involves a redemption of shares
and may result in a gain or loss for federal income tax purposes. In addition,
if the amount withdrawn exceeds any increase in the value of your account (due
to asset appreciation or dividends credited to your account, for example) the
account ultimately may be depleted. If insufficient shares are available to
provide the full and final systematic withdrawal payment amount requested, the
account will be redeemed in its entirety.
How
To Exchange Your Shares
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place an exchange request.
You
can exchange shares of one Carillon fund for shares of the same class of any
other Carillon fund, subject to the investment requirements of that fund. Obtain
a prospectus of that fund from your financial adviser, the funds or through our
website, rjinvestmentmanagement.com. You may exchange your shares by calling
your financial adviser or the funds if you exchange to like-titled Carillon
accounts. Written instructions with a signature guarantee are required if the
accounts are not identically registered. An exchange of shares is treated for
federal income tax purposes as a redemption (sale) of the shares of the fund
from which you are exchanging, on which you might realize a capital gain or loss
(unless you hold your shares through a tax‑deferred arrangement), and
a purchase of shares of the fund into which you are exchanging.
Please
consult a tax professional before requesting an exchange. Not all share classes
are available through all intermediaries. Each Carillon fund reserves the right
to reject any exchange request and to modify or terminate the exchange privilege
at any time.
Valuing
Your Shares
The
price at which an order to purchase or sell a fund’s shares is effected is based
on the NAV per share of each class of a fund next calculated after the order is
placed, plus any applicable sales charge. Each fund normally determines the NAV
of its shares each business day as of the scheduled close of regular trading on
the New York Stock Exchange (NYSE) and the Nasdaq, (typically 4:00 p.m. ET). The
NYSE and NASDAQ normally are open for business Monday through Friday except the
following holidays: New Year’s Day, Martin Luther King Day, President’s Day,
Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day. The fund will not treat an intraday unscheduled
disruption in trading on either the NYSE or Nasdaq as a closure of that
particular market, and will price its shares as of the normally scheduled close
of the NYSE and Nasdaq if the disruption directly affects only one of those
markets. If the NYSE or other securities exchange modifies the published closing
price of securities traded on that exchange after the NAV is calculated, the
funds are not required to recalculate their NAV. The funds do not price their
shares on days that the NYSE is closed.
Generally,
portfolio securities for which market quotations are readily available are
valued at market value; however, the market quotation price may be adjusted to
reflect events that occur between the close of those markets and the time of the
funds’ determination of the NAV. A market quotation may be considered unreliable
or unavailable for various reasons, such as (1) the quotation may be stale,
(2) the quotation may be unreliable because the security is not actively
traded, (3) trading on the security halted before the close of the trading
market, (4) the security is newly issued, (5) issuer specific or
vendor-specific events occurred after the security halted trading, or
(6) due to the passage of time between the close of the market on which the
security trades and the close of the NYSE and the Nasdaq. Issuer specific events
that may cause the last market quotation to be unreliable include (1) a
merger or insolvency, (2) events which affect a geographical area or an
industry segment, such as political events or natural disasters, or
(3) market events, such as a significant movement in the U.S. markets.
For
most securities, both the latest transaction prices and adjustments are
furnished by independent pricing services. All other securities and assets for
which market quotations are unavailable or unreliable are valued at their fair
value in good faith using the investment adviser’s Pricing and Valuation
Procedures (“Procedures”), which have been approved by the Board. For example,
small-cap securities that are thinly traded or illiquid may be fair valued. Fair
value is the amount that the owner might reasonably expect to receive for the
security upon its current sale. Fair value requires consideration of all
appropriate factors, including indications of fair value available from
independent pricing services. A fair value price is an estimated price and may
vary from the prices used by other mutual funds to calculate their NAV.
Rule
2a-5 under the Investment Company Act (the “Valuation Rule”) establishes
requirements for determining fair value in good faith for purposes of the
Investment Company Act, including related oversight and reporting requirements.
The rule also defines when market quotations are “readily available” for
purposes of the Investment Company Act, the threshold for determining whether a
fund must fair value a security.
The
Valuation Rule permits a fund’s board to designate the fund’s primary investment
adviser as “valuation designee” to perform the fund’s fair value determinations
subject to board oversight and certain reporting and other requirements intended
to ensure that the registered investment company’s board receives the
information it needs to oversee the investment adviser’s fair value
determinations.
| 60 | rjinvestmentmanagement.com |
Your
Investment
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
The
Board has designated Carillon as valuation designee under the Valuation Rule to
perform fair value functions in accordance with the requirements of the
Valuation Rule. Carillon performs these duties through a Valuation Committee,
comprised of employees of Carillon and/or its wholly-owned affiliates.
Carillon’s Valuation Committee monitors for circumstances that may necessitate
the use of fair value. In the event that (1) market quotations are not readily
available, (2) readily available market quotations are not reflective of market
value (prices deemed unreliable), or (3) a significant event has been recognized
in relation to a security or class of securities, the Valuation Committee will
determine such securities’ fair value in accordance with the Procedures.
Significant events include, but are not limited to, single-issuer events such as
corporate announcements or earnings, multiple-issuer events such as natural
disasters and significant market fluctuations.
There
can be no assurance, however, that a fair value price used on any given day will
more accurately reflect the market value of a security than the market price of
such security on that day, as fair valuation determinations may involve
subjective judgments made by the Valuation Committee. Fair value pricing may
deter shareholders from trading a fund’s shares on a frequent basis in an
attempt to take advantage of arbitrage opportunities resulting from potentially
stale prices of portfolio holdings. However, it cannot eliminate the possibility
of frequent trading. Specific types of securities are valued as follows:
| • |
Domestic
Exchange Traded Equity Securities — Market quotations are generally
available and reliable for domestic exchange-traded equity securities. If
the prices provided by the independent pricing service and independent
quoted prices are unavailable or 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 and the Nasdaq, closing market
quotations may become unreliable. Consequently, fair valuation of
portfolio securities may occur on a daily basis. The Valuation Committee,
using the Procedures, may fair value a security if certain events occur
between the time the trading of a particular security ends in a foreign
market and a fund’s NAV calculation. The Valuation Committee, using the
Procedures, may also fair value a particular security if the events are
significant and make the closing price unavailable or unreliable. If an
issuer-specific event has occurred that the Valuation Committee
determines, in its judgment, is likely to have affected the closing price
of a foreign security, it will price the security at fair value. The
Valuation Committee 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 an independent 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 funds. Because the NAV of
a fund’s shares is determined only on business days of the fund, the value
of the portfolio securities of a fund that invests in foreign securities
may change on days when shareholders would 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. Evaluated prices provided by the
independent pricing services may be determined without exclusive reliance
on quoted prices, and may reflect appropriate factors and appropriate
methodologies that have been considered, such as institution‑size trading
in similar groups of securities, developments related to special
securities, dividend rate, maturity and other market data. If the
evaluated prices provided by the independent 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. |
| • |
Credit
Default Swaps — Credit default swaps are valued with prices provided by
independent pricing services. If prices provided by independent pricing
services are unavailable or unreliable, the Valuation Committee will fair
value the security using the Procedures. |
| • |
Forward
Contracts — Forward contracts are valued daily at current forward rates
provided by an independent pricing services. 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 open‑end 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 closed‑end funds and 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.
|
| rjinvestmentmanagement.com | 61 |
Account
and Transaction Policies
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Account
and Transaction Policies
Doing
Business with the Funds
Timing of orders | All orders to purchase or
sell shares are executed at the next NAV, plus any applicable sales charge,
calculated after the order has been received in “good order” by an authorized
agent of the funds. Orders are accepted until the close of regular trading on
the NYSE every business day, normally 4:00 p.m. ET, and are executed the same
day at that day’s price. To ensure this occurs, the Distributor and/or dealers
are responsible for transmitting all orders to the funds in compliance with
their contractual deadline.
Good order requirements | For the funds to
process a request, it must be in “good order.” Good order means that Carillon
has been provided sufficient information necessary to process the request as
outlined in this Prospectus, including:
| • |
The
shareholder’s name; |
| • |
The
name of the fund; |
| • |
The
account number; |
| • |
The
share or dollar amount to be transacted; and |
| • |
The
signatures of all registered shareholders with signature guarantees, if
applicable. |
Further,
there must not be any restrictions applied to the account. Certain requests are
subject to the transfer agent’s verification procedures before they are
considered in good order. A request is not considered to be in “good order” by
the funds until it meets these requirements.
Account registration options | Carillon offers
several options for registering your account. To establish a Transfer on Death
(“TOD”) arrangement, an additional TOD agreement is required. Additionally,
Carillon offers a range of IRA plans including traditional, Roth, SEP and SIMPLE
IRA plans. IRA plans require a separate adoption agreement as well as separate
forms to sell your shares. The TOD and IRA agreements are available from your
financial adviser, the funds or through our website, rjinvestmentmanagement.com.
Customer identification and verification
procedures | The funds are required under the USA PATRIOT Act to obtain
certain information about you in order to open an account. You must provide the
funds with the name, physical address (mailing addresses containing only a P.O.
Box are not accepted), Social Security or other taxpayer identification number
and date of birth of all owners of the account. If you do not provide us with
this information, your account will not be opened and your investment will be
returned. If you are opening the account in the name of a legal entity (e.g., partnership, limited liability company,
business trust, corporation, etc.), you must also supply the identity of the
beneficial owners. For these entities, the person opening the account on the
entity’s behalf must provide this information. The funds will use this
information to verify your identity using various methods. In the event that
your identity cannot be sufficiently verified, the funds may employ additional
verification methods or refuse to open your account. Under certain
circumstances, it may be appropriate for the funds to close or suspend further
activity in an account.
Shares
of the funds have not been registered for sale outside of the United States and
U.S. territories. The funds generally do not permit the establishment of new
accounts for foreign individuals or entities. The Carillon funds generally do
not sell shares directly to individual investors residing outside the United
States, even if they are United States citizens or lawful permanent residents,
except to investors at United States embassies with DPO addresses and investors
with United States military APO or FPO addresses. Non‑individual entities
registered outside the United States, except Plan Administrators that have
entered into an agreement with the Distributor, are not permitted to invest
directly with the funds.
Restrictions on orders | The funds and the
Distributor reserve the right to reject any purchase or exchange order for any
reason and to suspend the offering of fund shares for a period of time. There
are certain times when you may not be able to sell shares of a fund or when we
may delay paying you the redemption proceeds. This may happen during unusual
market conditions or emergencies as a result of which a fund cannot determine
the value of its assets or sell its holdings.
Website | Subject to availability by your
financial institution, you may access your account information, including
balances, statements, tax forms and transaction history, through our website,
rjinvestmentmanagement.com. You may also update your account and process
purchases, redemptions, and exchanges through our website. Additional
information, including current fund performance and various account forms and
agreements, is also available on our website.
Telephone | For your protection, telephone
requests may be recorded in order to verify their accuracy and monitor call
quality. In addition, we will take measures to verify the identity of the
caller, such as asking for name, account number, Social Security or other
taxpayer identification number and other relevant information. If appropriate
measures are taken, we are not responsible for any losses that may occur to any
account due to an unauthorized telephone request. If an account has more than
one owner or authorized person, the funds will accept telephone instructions
from any one owner or authorized person.
| 62 | rjinvestmentmanagement.com |
Account
and Transaction Policies
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Payment of redemption proceeds | The funds
generally intend to meet redemption requests, under both normal and stressed
market conditions, by paying out available cash or by selling portfolio holdings
(including cash equivalent portfolio holdings). The funds also reserve the right
to satisfy redemption requests in whole or in part by making payment in
securities or other property (this is known as
a redemption‑in‑kind) in stressed market conditions and other
appropriate circumstances. To the extent the funds redeem their shares in
marketable securities the shareholder assumes any risk of the market price of
such securities fluctuating. In addition, the shareholder will bear any
brokerage and related costs incurred in disposing of or selling the securities
it receives from the funds and the risk that there may not be a liquid market
for those securities.
Accounts with below-minimum balances | If your
account balance falls below $1,000 as a result of selling shares (and not
because of performance or sales charges), each fund reserves the right to
request that you buy more shares or close your account. If your account balance
is still below the minimum 30 calendar days after notification, each fund
reserves the right to close your account and send the proceeds to your address
of record.
Abandoned accounts | Your mutual fund account
may be transferred to your state of residence if no activity occurs within your
account during the “inactivity period” specified in your state’s abandoned
property laws. If the funds are unable to locate a shareholder, they will
determine whether the shareholder’s account can legally be considered abandoned.
The funds are legally obligated to escheat (or transfer) abandoned property to
the appropriate state’s unclaimed property administrator in accordance with
statutory requirements. The shareholder’s last known address of record
determines which state has jurisdiction. Interest or income is not earned on
redemption or distribution checks sent to you during the time the check remained
uncashed. Investors who are residents of the state of Texas may designate a
representative to receive legislatively required unclaimed property due
diligence notifications. Please contact the funds to complete a Texas
Designation of Representative form.
Market timing | Market timing typically refers
to the practice of frequent trading in the shares of mutual funds in order to
exploit inefficiencies in fund pricing. Such transactions include trades that
occur when a fund’s NAV does not fully reflect the value of the fund’s holdings
— for example, when a fund owns holdings, such as foreign or thinly traded
securities, that are valued in a manner that may not reflect the most updated
information possible. Foreign securities generally are priced using fair
valuation procedures approved by the Board as part each fund’s calculation of
its NAV. These prices may be affected by events that occur after the close
of a foreign market but before each fund prices its shares. Excessive trading or
market timing can be disruptive to a fund’s efficient management and have a
dilutive effect on the value of the investments of long-term fund shareholders,
increase the transaction and other costs of a fund and increase the fund’s
recognized net capital gains (and, therefore, unless the fund has a net capital
loss for, or capital loss carryover to, the taxable year in which the gains
are realized, taxable distributions to its shareholders), all of which could
reduce the return to fund shareholders.
The
Board has adopted policies reasonably designed to deter short-term trading of
fund shares. The funds will not enter into agreements to accommodate frequent
purchases or exchanges. Further, the funds have adopted the following
guidelines:
| • |
The
funds review transaction activity, using established criteria, to identify
transactions that may signal excessive trading. |
| • |
The
funds may reject any purchase or exchange orders, in whole or in part,
that in their opinion, appear excessive in frequency and/or amount or
otherwise potentially disruptive to a fund. The funds may consider the
trading history of accounts under common ownership or control in this
determination. |
| • |
All
shareholders are subject to these restrictions regardless of whether you
purchased your shares directly from the funds or through a financial
intermediary. The funds reserve the right to reject combined or omnibus
orders in whole or in part. |
| • |
The
funds seek the cooperation of broker-dealers and other financial
intermediaries by various methods such as entering into agreements whereby
the funds will request information regarding the identity of specific
investors, transaction information and restricting the ability of
particular investors to purchase fund shares. |
While
the funds apply these policies, there is no guarantee that all market timing
will be detected.
Disclosure of portfolio holdings |
Periodically, customers of the funds express interest in having current
portfolio holdings disclosed to them more often than required by law or
regulation. To satisfy this request, the funds have adopted a policy on
disclosing portfolio holdings to properly manage this process to ensure
confidentiality and proper use of this information. A description of the funds’
policy is included in the SAI. Portfolio information can be found on our
website, rjinvestmentmanagement.com.
| rjinvestmentmanagement.com | 63 |
Account
and Transaction Policies
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Account statements | If you purchase shares
directly from a fund, you will receive monthly or quarterly statements detailing
fund balances and all transactions completed during the prior period and a
confirmation of each transaction. Automatic reinvestments of distributions and
systematic investments/withdrawals may be confirmed only by monthly or quarterly
statements. You should verify the accuracy of all transactions in your account
as soon as you receive your confirmations and statements and immediately notify
the funds or your financial adviser of any discrepancies. To enroll in eDelivery
of account statements, visit our website, rjinvestmentmanagement.com.
Householding | In an effort to decrease costs,
the funds intend to reduce the number of duplicate prospectuses and other
similar documents you receive by sending only one copy of each to those
addresses shared by two or more accounts and to shareholders we reasonably
believe are from the same family or household. Once implemented, if you would
like to discontinue householding for your accounts, please call toll-free at
800.421.4184 to request individual copies of these documents. Once the funds
receive notice to stop householding, we will begin sending individual copies
thirty days after receiving your request. This policy does not apply to account
statements.
Dividends,
Other Distributions and Taxes
General | Each fund distributes all or
substantially all of its net investment income and net capital and foreign
currency gains, if any, to its shareholders every year. Net investment income
generally consists of dividends and interest income received on investments,
less expenses. The Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell
Small Cap Growth Fund and Carillon Chartwell Small Cap Value Fund will make
distributions of net investment income and net capital gains, if any, at least
annually, typically in December. The Carillon Chartwell Income Fund, Carillon
Chartwell Short Duration Bond Fund and Carillon Chartwell Short Duration High
Yield Fund will make distributions of net investment income on a monthly basis
and net capital gains, if any, on an annual basis, typically in December. The
funds may make additional payments of dividends or distributions if they deem it
desirable at any other time during the year.
The
dividends you receive from a fund generally will be taxed as ordinary income. A
portion of those dividends may be eligible for the maximum federal income tax
rates applicable to “qualified dividend income” distributed to individual and
certain other non‑corporate shareholders (each, a “non‑corporate
shareholder”) who satisfy certain holding period and other restrictions with
respect to their fund shares. Those maximum rates are 15% for a single
shareholder with taxable income not exceeding $492,300, ($553,850 for married
shareholders filing jointly) and 20% for non‑corporate shareholders
with taxable income exceeding those respective amounts, which apply for 2023 and
will be adjusted for inflation annually.
Each
fund also distributes net capital gains (and, in the case of certain funds, net
gains from foreign currency transactions), if any, to its shareholders, normally
once a year. A fund generates capital gains when it sells assets in its
portfolio for profit. Capital gain distributions are taxed differently depending
on how long the fund held the asset(s) that generated the gain (not on how long
you hold your shares in the fund). Distributions to you of net capital gains
recognized on the sale of assets held for one year or less are taxed as ordinary
income; distributions to you of net capital gains recognized on the sale of
assets held longer than one year are taxed at the maximum federal income tax
rates mentioned above.
Generally,
fund distributions are taxable to you in the year you receive them. However, any
distributions that are declared in October, November or December but paid in
January generally are taxable as if received on December 31. Tax laws and rates
often change over time. Please consult a tax professional for more information.
A
fund’s distributions of dividends and net realized gains are automatically
reinvested in additional shares of the distributing class of the fund at NAV
(without sales charge) unless you opt to take your distributions in cash, in the
form of a check, or direct them for purchase of shares in the same class of
another fund. You are taxed in the same manner whether you receive your
dividends and other distributions in cash or reinvest them in additional fund
shares. If you elect to receive dividends and/or other distributions in cash,
and the U.S. Postal Service cannot deliver the check, or if a check remains
outstanding for six months, each fund reserves the right to reinvest the amount
of the distribution check in your account, at the fund’s then-current NAV per
share, and to reinvest all subsequent distributions. If you wish to change your
distribution option, write or call the funds at 800.421.4184. Changes should be
submitted five days prior to the record date of the next distribution.
| 64 | rjinvestmentmanagement.com |
Account
and Transaction Policies
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
In
general, redeeming or exchanging shares and receiving distributions (whether
reinvested or taken in cash) are all taxable events. Fund transactions typically
are treated for federal income tax purposes as follows:
| 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 |
*The excess of net short-term capital gain over net
long-term capital loss.
**The excess of net long-term capital gain over net
short-term capital loss.
An
individual must pay a 3.8% tax on the lesser of (1) the individual’s “net
investment income,” which generally includes dividends and other distributions a
fund pays and net gains realized on a redemption or exchange of a fund’s shares,
or (2) the excess of the individual’s “modified adjusted gross income” over
a threshold amount ($250,000 for married persons filing jointly and $200,000 for
single taxpayers). This tax is in addition to any other taxes due on that
income. A similar tax applies to estates and trusts. Shareholders should consult
their own tax advisors regarding the effect, if any, this provision may have on
their investment in a fund (or funds).
Withholding taxes | If you are
a non‑corporate shareholder and a fund does not have your correct
Social Security or other taxpayer identification number, federal law requires us
to withhold and pay to the Internal Revenue Service (“IRS”) 24% of the
distributions and redemption proceeds (regardless of the extent to which you
realize a gain or loss) otherwise payable to you. If you are subject to backup
withholding for any other reason, we also must withhold and pay to the IRS 24%
of the distributions otherwise payable to you. Any tax withheld may be applied
against the federal income tax liability on your tax return. State law may also
require us to withhold and pay to your state of residence a portion of your
distributions and redemption proceeds.
Tax reporting | If your account receives
distributions or has withholding or other activity required to be reported to
the IRS, we will send you the appropriate tax form that reflects the amount and
tax status of that activity. Such tax forms will be mailed early in each year
for the prior calendar year in accordance with IRS guidelines. To enroll in
eDelivery of tax forms, visit our website, rjinvestmentmanagement.com. Certain
investors, depending on their financial intermediary, may be ineligible to
receive tax forms via eDelivery.
Each
fund is required to report annually to both shareholders and the IRS basis
information of fund shares acquired after December 31, 2011 (“Covered
Shares”). Each fund will compute the basis of your redeemed or exchanged Covered
Shares using the average basis method, which is each fund’s “default method,”
unless you contact the fund to select a different IRS‑accepted method
(such as a specific identification method) at the time of each redemption or
exchange, which you may not change after the settlement date thereof. If your
account is held by your financial adviser or other broker-dealer, that firm may
select a different default method; in such a case, please contact that firm to
obtain information with respect to the available methods and elections for your
account with it. You should carefully review the basis information provided by
each fund or your financial adviser or other broker-dealer and make any basis,
holding period or other adjustments that are required when reporting these
amounts on your income tax returns.
Because
everyone’s tax situation is unique, always consult your tax professional about
federal, state and local tax consequences.
Additional
Information
The
Board oversees generally the operations of the funds. The Trust enters into
contractual arrangements with various parties, including among others, the
funds’ manager, sub‑advisers, custodian, transfer agent, and accountants, who
provide services to the funds. Shareholders are not parties to any such
contractual arrangements or intended beneficiaries of those contractual
arrangements, and those contractual arrangements are not intended to create in
any shareholder any right to enforce them directly against the service providers
or to seek any remedy under them directly against the service providers.
| rjinvestmentmanagement.com | 65 |
Account
and Transaction Policies
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
This
Prospectus provides information concerning the funds that you should consider in
determining whether to purchase fund shares. Neither this Prospectus nor the
Statement of Additional Information is intended, or should be read, to be or
give rise to an agreement or contract between the Trust or the funds and any
investor, or to give rise to any rights in any shareholder or other person other
than any rights under federal or state law that may not be waived. Nothing in
this Prospectus, the Statement of Additional Information or the funds’ reports
to shareholders is intended to provide investment advice and should not be
construed as investment advice.
| 66 | rjinvestmentmanagement.com |
Carillon
Mutual Funds
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
Description
of Indices
Bloomberg U.S. Aggregate Bond Index is a
broad-based benchmark that measures the investment grade, US dollar-denominated,
fixed rate taxable bond market. The returns of the index do not include the
effect of any sales charges. That means that actual returns would be lower if
they included the effect of sales charges.
ICE BofA U.S. Cash Pay High Yield Index is an
index of all sectors of the non‑investment grade bond market.
Russell 3000 Value Index measures the
performance of the broad value segment of the US equity value universe. It
includes those Russell 3000 companies with relatively lower price‑to‑book
ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per
share historical growth (5 years).
25% Russell 3000 Value/55% Bloomberg US Aggregate/20%
ICE BofA U.S. Cash Pay High Yield blend is a custom benchmark comprised
of 25% Russell 3000 Value, 55% Bloomberg U.S. Aggregate Bond, and 20% ICE BofA
U.S. Cash Pay High Yield indices.
Russell Midcap Value Index measures the
performance of the mid-cap value segment of the US equity universe. It includes
those Russell Midcap Index companies with relatively lower price-to-book ratios,
lower I/B/E/S forecasted medium term (2 year) growth and lower sales per share
historical growth (5 years).
Bloomberg 1-3 Year U.S. Government/Credit Index
measures the performance of US Treasury securities that have a maturity ranging
from 1-3 years.
ICE BofA 1‑3 Year BB US Cash Pay High Yield
Index is a subset of the ICE BofA U.S. Cash Pay High Yield Index
including all securities with a remaining term to final maturity less than 3
years and rated BB1 through BB3, inclusive.
Bloomberg Intermediate US Government/Credit
Index tracks the performance of intermediate term U.S. government and
corporate bonds.
Russell 2000 Growth Index measures the
performance of the small-cap growth segment of the US equity universe. It
includes those Russell 2000 Index companies with relatively higher price-to-book
ratios, higher I/B/E/S forecasted medium term (2 year) growth and higher sales
per share historical growth (5 years).
Russell 2000 Value Index measures the
performance of the small-cap value segment of the US equity universe. It
includes those Russell 2000 companies with relatively lower price-to-book
ratios, lower I/B/E/S forecasted medium term (2 year) growth and lower sales per
share historical growth (5 years).
Fund
Symbols, CUSIPs and Codes
| Fund | Class | Symbol | CUSIP | Fund Code | ||||
| Carillon Chartwell Income Fund | Chartwell | BERIX | 16140T202 | 5759 | ||||
| Carillon Chartwell Mid Cap Value Fund | Chartwell | BERCX | 16140T301 | 5758 | ||||
| Carillon Chartwell Short Duration Bond Fund | Chartwell | CWSDX | 16140T707 | 5760 | ||||
| Fund | Class | Symbol | CUSIP | Fund Code | ||||
| Carillon Chartwell Short Duration High Yield Fund | Chartwell | CWFIX | 16140T400 | 5761 | ||||
| Carillon Chartwell Small Cap Growth Fund | Chartwell | CWSGX | 16140T608 | 5762 | ||||
| Carillon Chartwell Small Cap Value Fund | Chartwell | CWSIX | 16140T509 | 5763 | ||||
| rjinvestmentmanagement.com | 67 |
Financial
Highlights
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
The
financial highlights are intended to help you understand the performance of each
class of shares of a fund for the periods indicated. Certain information
reflects financial results for a single Class Chartwell share. Based upon
the commencement of operations for some of the funds, 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). The financial information for a fund for the fiscal years ended
October 31, 2018, October 31, 2019 and October 31, 2020, for the
fiscal period ended December 31, 2020, December 31, 2021 and for the fiscal
year ended December 31, 2022, has been audited by BBD LLP, an independent
registered public accounting firm, whose report, along with each fund’s
financial statements, is included in the fund’s annual report, which is
available upon request.
Pursuant
to reorganizations that occurred on June 30, 2022, each fund is the legal entity
successor to the corresponding series of The Chartwell Trust (each a “Chartwell
Predecessor Fund”). Each Chartwell Predecessor Fund is the accounting and tax
survivor as a result of the reorganizations. Accordingly, the financial
highlights of each fund through June 30, 2022 represents the financial history
of the corresponding Chartwell Predecessor Fund. Prior to the reorganizations,
no fund had any investment operations.
Per
Share Data for a Share Outstanding Throughout Each Year/Period
|
Fiscal
period |
From investment operations |
Dividends & distributions |
Ratios
to average net assets (%) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning | Ending | Beginning net asset value |
Income (loss) |
Realized & unrealized gains (losses) |
Total | From investment income |
From realized gains |
Total | Proceeds from redemption fees collected |
Ending net asset value |
With expenses waived/ recovered (a) |
Without expenses waived/ recovered (a) |
Net income (loss) (a) |
Portfolio turnover rate (%) (b) |
Total return (%) (b)(c) |
Net assets at end of year/period (thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Income Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | $14.15 | $0.38 | $(1.80) | $(1.42) | $(0.39) | $(0.05) | $(0.44) | — | $12.29 | 0.64 | 0.69 | 2.87 | 40 | (10.14) | $366,987 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/21 | 12/31/21 | 13.53 | 0.34 | 0.65 | 0.99 | (0.37) | — | (0.37) | 0.00 | * | 14.15 | 0.64 | 0.68 | 2.41 | 56 | 7.35 | 520,177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/20 | 12/31/20 | ^ | 12.72 | 0.07 | 0.81 | 0.88 | (0.07) | — | (0.07) | 0.00 | * | 13.53 | 0.64 | 0.73 | 2.93 | 7 | 6.93 | 556,850 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/19 | 10/31/20 | 13.26 | 0.40 | (0.52) | (0.12) | (0.42) | — | (0.42) | 0.00 | * | 12.72 | 0.64 | 0.67 | 3.08 | 63 | (0.83) | 568,025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/18 | 10/31/19 | 13.18 | 0.41 | 0.50 | 0.91 | (0.44) | (0.39) | (0.83) | 0.00 | * | 13.26 | 0.64 | 0.66 | 2.95 | 137 | 7.22 | 1,030,248 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/17 | 10/31/18 | 13.80 | 0.31 | (0.19) | 0.12 | (0.30) | (0.44) | (0.74) | 0.00 | * | 13.18 | 0.64 | 0.68 | 2.29 | 75 | 0.88 | 1,490,295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Mid Cap Value Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | 18.88 | 0.19 | (2.38) | (2.19) | (0.18) | (0.01) | (0.19) | — | 16.50 | 0.90 | 1.29 | 1.15 | 27 | (11.63) | 40,877 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/21 | 12/31/21 | 14.92 | 0.11 | 3.96 | 4.07 | (0.11) | — | (0.11) | — | 18.88 | 0.90 | 1.29 | 0.68 | 15 | 27.30 | 38,467 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/20 | 12/31/20 | ^ | 13.12 | 0.03 | 1.94 | 1.97 | (0.17) | — | (0.17) | — | 14.92 | 0.90 | 1.56 | 1.25 | 3 | 15.00 | 28,540 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/19 | 10/31/20 | 15.54 | 0.19 | (2.28) | (2.09) | (0.18) | (0.15) | (0.33) | — | 13.12 | 0.90 | 1.47 | 1.40 | 35 | (13.81) | 24,752 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/18 | 10/31/19 | 15.07 | 0.17 | 1.34 | 1.51 | (0.11) | (0.93) | (1.04) | — | 15.54 | 1.02 | + | 1.44 | 1.09 | + | 36 | 11.47 | 25,704 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/17 | 10/31/18 | 18.55 | 0.11 | 0.03 | 0.14 | (0.14) | (3.48) | (3.62) | — | 15.07 | 1.05 | ~ | 1.57 | 0.77 | ~ | 65 | (0.12) | 25,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Small Cap Value Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | 19.90 | 0.10 | (2.04) | (1.94) | — | (0.21) | (0.21) | — | 17.75 | 1.05 | 1.17 | 0.54 | 24 | (9.71) | 149,898 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/21 | 12/31/21 | 17.75 | 0.10 | 4.16 | 4.26 | (0.10) | (2.01) | (2.11) | 0.00 | * | 19.90 | 1.05 | 1.15 | 0.45 | 20 | 24.42 | 182,868 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/20 | 12/31/20 | ^ | 14.75 | 0.04 | 3.09 | 3.13 | (0.13) | — | (0.13) | — | 17.75 | 1.05 | 1.21 | 1.32 | 2 | 21.23 | 177,334 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/19 | 10/31/20 | 18.67 | 0.13 | (3.37) | (3.24) | (0.14) | (0.54) | (0.68) | 0.00 | * | 14.75 | 1.05 | 1.18 | 0.81 | 30 | (18.16) | 148,069 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/18 | 10/31/19 | 18.79 | 0.13 | 1.04 | 1.17 | (0.07) | (1.22) | (1.29) | 0.00 | * | 18.67 | 1.05 | 1.07 | 0.69 | 30 | 7.54 | 172,753 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/17 | 10/31/18 | 20.07 | 0.06 | (0.45) | (0.39) | (0.05) | (0.84) | (0.89) | 0.00 | * | 18.79 | 1.05 | 1.08 | 0.28 | 19 | (2.18) | 228,779 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Short Duration High Yield Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | 9.75 | 0.29 | (0.60) | (0.31) | (0.29) | — | (0.29) | — | 9.15 | 0.49 | 0.59 | 3.09 | 35 | (3.17) | 209,672 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/21 | 12/31/21 | 9.79 | 0.27 | (0.04) | 0.23 | (0.27) | — | (0.27) | — | 9.75 | 0.49 | 0.58 | 2.78 | 54 | 2.40 | 216,879 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/20 | 12/31/20 | ^ | 9.59 | 0.05 | 0.20 | 0.25 | (0.05) | — | (0.05) | — | 9.79 | 0.49 | 0.66 | 3.13 | 9 | 2.63 | 163,703 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/19 | 10/31/20 | 9.68 | 0.33 | (0.08) | 0.25 | (0.34) | — | (0.34) | 0.00 | * | 9.59 | 0.49 | 0.61 | 3.55 | 63 | 2.62 | 161,474 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/18 | 10/31/19 | 9.48 | 0.35 | 0.20 | 0.55 | (0.35) | — | (0.35) | 0.00 | * | 9.68 | 0.49 | 0.67 | 3.62 | 41 | 5.89 | 91,914 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/17 | 10/31/18 | 9.72 | 0.29 | (0.24) | 0.05 | (0.29) | — | (0.29) | — | 9.48 | 0.49 | 0.80 | 3.15 | 26 | 0.55 | 75,536 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Small Cap Growth Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | 16.36 | (0.08) | (4.96) | (5.04) | — | (0.52) | (0.52) | — | 10.80 | 1.05 | 1.82 | (0.54) | 80 | (30.83) | 16,303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/21 | 12/31/21 | 17.29 | (0.15) | 2.78 | 2.63 | (0.01) | (3.55) | (3.56) | — | 16.36 | 1.05 | 1.47 | (0.88) | 61 | 16.47 | 28,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/20 | 12/31/20 | ^ | 15.22 | (0.01) | 3.24 | 3.23 | — | (1.16) | (1.16) | — | 17.29 | 1.05 | 1.76 | (0.58) | 24 | 21.20 | 27,436 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/19 | 10/31/20 | 11.78 | (0.09) | 3.53 | 3.44 | — | (0.00) | * | (0.00) | * | 0.00 | * | 15.22 | 1.05 | 1.73 | (0.56) | 104 | 29.25 | 22,808 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/18 | 10/31/19 | 11.55 | (0.04) | 0.32 | 0.28 | — | (0.05) | (0.05) | 0.00 | * | 11.78 | 1.05 | 1.64 | (0.39) | 104 | 2.46 | 20,637 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11/01/17 | 10/31/18 | 10.69 | (0.04) | 0.90 | 0.86 | 0.00 | * | — | 0.00 | * | — | 11.55 | 1.05 | 2.15 | (0.45) | 97 | 8.07 | 17,821 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carillon Chartwell Short Duration Bond Fund |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/01/22 | 12/31/22 | 9.95 | 0.13 | (0.45) | (0.32) | (0.13) | (0.00) | * | (0.13) | — | 9.50 | 0.39 | 3.12 | 1.54 | 69 | (3.15) | 9,570 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 09/22/21# | 12/31/21 | 10.00 | 0.01 | (0.05) | (0.04) | (0.01) | (0.00) | * | (0.01) | — | 9.95 | 0.39 | 3.51 | 0.46 | 6 | (0.37) | 5,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 68 | rjinvestmentmanagement.com |
Financial
Highlights
PROSPECTUS | 5.1.2023
(as supplemented 8.7.2023)
(a) Annualized for periods less than one year.
(b) Not annualized for periods less than one year.
(c) Total return is a measure of the change in value
of an investment in the Fund over the period covered, which assumes any
dividends or capital gains distributions are reinvested in shares of the Fund.
The returns shown do not reflect the deduction of taxes a shareholder would pay
on Fund distributions or the redemption of Fund shares. The total returns would
have been lower had the Advisor not reduced its fees or reimbursed expenses.
^ Fund changed fiscal year to December 31.
* Amount rounds to less than $0.01 per share.
+ Effective September 1, 2019, the Advisor
contractually agreed to reduce its fees and/or reimburse other operating
expenses of the Fund to ensure that total annual operating expenses do not
exceed 0.90% of the average daily net assets of the Fund. Prior to
September 1, 2019, the annual operating expense limitation was 1.05%
~ Effective November 6, 2017, the Advisor
contractually agreed to reduce its fees and/or reimburse other operating
expenses of the Fund to ensure that total annual operating expenses do not
exceed 1.05% of the average daily net assets of the Fund. Prior to November 6,
2017, the annual operating expense limitation was 1.15%.
# Commencement of operations.
| rjinvestmentmanagement.com | 69 |
For
More Information
More
information on these funds is available free upon request, including the
following:
Financial reports | Additional information
about each fund’s investments is available in each fund’s annual and semiannual
reports to shareholders and in Form N-CSR. In those reports, you will find a
discussion of the market conditions and investment strategies that affected each
fund’s performance during the fiscal period. In Form N-CSR, you will find each
fund’s annual and semiannual financial statements.
Statement of additional information (“SAI”) |
Additional information about each fund and its policies may be found in the SAI.
A current SAI is on file with the Securities and
Exchange Commission (“Commission”) and is incorporated herein by reference
(meaning it is legally considered part of this Prospectus).
To
obtain the SAI, Prospectus, annual report, semiannual report, privacy notice,
performance information, an account application, a schedule of portfolio
holdings found on Form N‑PORT, each fund’s financial statements, other
information or to make an inquiry, without charge, contact the Carillon Family
of Funds:
| By mail: | P.O. Box 23572 | |
| St. Petersburg, FL 33742 | ||
| By telephone: | 1.800.421.4184 | |
| By internet: | rjinvestmentmanagement.com | |
These
documents and other information about the funds can be viewed on‑screen or
downloaded from the EDGAR Database on the Commission’s website at www.sec.gov;
or after paying a duplicating fee, by electronic request at the following email
address: [email protected].
The
Carillon Family of Funds is pleased to offer the convenience of viewing
shareholder communications, including fund prospectuses, annual and semiannual
reports, including fund financial statements, and proxy statements, online at
rjinvestmentmanagement.com.
The
Investment Company and Securities Act registration numbers are:
| Investment Company Act | 811‑07470 | |||
| Securities Act | 033‑57986 | |||
No
dealer, salesperson or other person has been authorized to give any information
or to make any representation other than that contained in this Prospectus in
connection with the offer contained in this Prospectus, and, if given or made,
such other information or representations must not be relied upon unless having
been authorized by the funds or their distributor. This Prospectus does not
constitute an offering in any state in which such offering may not lawfully be
made.
| 70 | rjinvestmentmanagement.com |
