ck0001027596-20220930
PROSPECTUS
December 30,
2022
Scharf
Fund
Retail
Class – LOGRX
Institutional
Class – LOGIX
Scharf
Multi-Asset Opportunity Fund
Retail
Class – LOGBX
Institutional
Class – LOGOX
Scharf
Global Opportunity Fund
Institutional
Class (formerly, Retail Class) – WRLDX
The
U.S. Securities and Exchange Commission has not approved or disapproved these
securities or determined if this Prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
SUMMARY
SECTION
Scharf Fund
Investment Objective
The Scharf Fund (the “Scharf
Fund” or the “Fund”) seeks long-term capital appreciation.
Fees and Expenses of the Fund
This table describes the fees
and expenses that you may pay if you buy, hold, and sell shares of the Scharf
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the table and example
below.
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SHAREHOLDER
FEES
(fees
paid directly from your investment) |
Retail Class |
Institutional Class |
Redemption
Fee (as
a percentage of amount redeemed on shares held for 60 days or
less) |
2.00 |
% |
2.00 |
% |
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ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
Management
Fees |
0.78 |
% |
0.78 |
% |
Distribution
and Service (Rule 12b-1) Fees |
0.25 |
% |
None |
Other
Expenses (includes 0.10% Shareholder Servicing Plan Fee) |
0.19 |
% |
0.19 |
% |
Total
Annual Fund Operating Expenses(1) |
1.22 |
% |
0.97 |
% |
Less:
Fee Waiver and/or Expense Reimbursement(2) |
-0.08 |
% |
-0.08 |
% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
1.14 |
% |
0.89 |
% |
(1)Total Annual Fund
Operating Expenses reflect the maximum Rule 12b-1 fee and/or Shareholder
Servicing Plan fee allowed while the Expense Ratios in the Financial Highlights
reflect actual expenses.
(2)Scharf
Investments, LLC (the “Adviser”) has contractually agreed to waive a portion or
all of its management fees and pay Scharf Fund expenses in order to limit Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
(excluding AFFE, interest, taxes, extraordinary expenses and class specific
expenses, such as the distribution (12b-1) fee of 0.25% or shareholder servicing
plan fee of 0.10%), to 0.79% of average daily net assets of the Fund (the
“Expense Cap”). The Expense Cap will remain in effect through at least
January 27,
2024, and may be terminated only by the Fund’s Board of Trustees
(the `“Board”). The Adviser may request recoupment of previously waived fees and
expenses from the Fund for 36 months from the date they were waived or paid,
subject to the Expense Cap at the time such amounts were waived or at the time
of recoupment, whichever is lower.
Example
This Example is
intended to help you compare the cost of investing in the Scharf Fund with the
cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem or hold all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same (taking into account the Expense Cap only in the first
year). Although your actual costs may be higher
or lower, based on these assumptions, your costs would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
Retail
Class |
$116 |
$379 |
$663 |
$1,470 |
Institutional
Class |
$91 |
$301 |
$529 |
$1,182 |
Portfolio Turnover
The Scharf Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in
annual fund operating expenses or in the
Example, affect the Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 22.66% of the average value of its
portfolio.
Principal Investment Strategies of the
Fund
Under
normal market conditions, the Scharf Fund primarily invests in equity securities
that the Adviser believes have significantly more appreciation potential than
downside risk over the long term. Equity securities in which the Fund may invest
include, but are not limited to, common and preferred stock of companies of all
size market capitalizations, rights and warrants. The Fund may invest up to 50%
of its total assets in securities of foreign issuers listed on foreign exchanges
(excluding depositary receipts), including up to 25% of its total assets in
issuers in emerging markets. The Fund may invest without limit in depositary
receipts, such as American Depositary Receipts (“ADRs”), European Depositary
Receipts (“EDRs”) and Global Depositary Receipts (“GDRs”). The Fund may also
invest up to 30% of its total assets in non-money market investment companies,
including exchange-traded funds (“ETFs”). The Fund may also invest in Rule 144A
securities.
In
general, the Adviser utilizes five key elements in its equity investment
philosophy: low valuation, discount to fair value, investment flexibility, focus
and long-term perspective. Through a proprietary screening process, the Adviser
seeks to identify investments with low valuations combined with growing
earnings, cash flow and/or book value. The Scharf Fund may also invest in
“special situations,” which may occur when the securities of a company are
affected by circumstances, including, but not limited to, hidden assets
(i.e.,
assets that may be undervalued on a company’s balance sheet or otherwise
difficult to value and therefore not properly reflected in the company’s share
price), spinoffs, liquidations, reorganizations, recapitalizations, mergers,
management changes and technological changes.
In
addition, the Scharf Fund may invest up to 30% of its total assets in
fixed-income securities. Fixed-income securities in which the Fund may invest
include, but are not limited to, those of domestic and foreign governments,
government agencies, inflation-protected securities, asset-backed securities,
exchange-traded notes (“ETNs”), money market instruments, convertible
securities, bank debt, limited partnerships, municipalities and companies across
a wide range of industries, market capitalizations and maturities and may
include those that are rated below investment grade (i.e.,
“junk bonds”). The types of asset-backed securities in which the Fund may invest
include mortgage-backed securities.
As
part of its research process, the Adviser may consider how environmental, social
and governance (“ESG”) issues affect a company’s long-term outlook, in terms of
opportunities and/or risks for the business and whether such ESG factors have
the potential to influence future stock performance, but such factors are not
determinative (i.e.
they would not lead the Adviser to buy or sell a security without consideration
of other factors in the investment process).
The
Scharf Fund may invest up to 100% of its net assets in cash, cash equivalents,
and high-quality, short-term debt securities, money market mutual funds and
money market instruments due to a lack of suitable investment opportunities or
for temporary defensive purposes.
When selling securities, the Adviser
considers the same factors it uses in evaluating a security for purchase and
generally sells securities that it believes no longer have sufficient upside
potential.
Principal Risks of Investing in the Fund
By itself, the Fund is not a
complete, balanced investment plan. The Fund cannot guarantee that it will
achieve its investment objectives. Losing
all or a portion of your investment is a risk of investing in the
Fund. The following risks
are considered principal and could affect the value of your investment in the
Fund:
•General
Market Risk.
Economies
and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including: inflation (or expectations
for inflation); interest rates; global demand for particular products or
resources; natural disasters or events; pandemic diseases; terrorism; regulatory
events; and government controls. U.S. and international markets have experienced
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including the impact of COVID-19 as
a global pandemic, which has resulted in a public health crisis, disruptions to
business operations and supply chains, stress on the global healthcare system,
growth concerns in the U.S. and overseas, staffing shortages and the inability
to meet consumer demand, and widespread concern and uncertainty. The global
recovery from COVID-19 is proceeding at slower than expected rates due to the
emergence of variant strains and may last for an extended period of time.
Continuing uncertainties regarding interest rates, rising inflation, political
events, rising government debt in the U.S. and trade tensions also contribute to
market volatility. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so.
•Equity
Securities Risk. The
value of the Fund’s shares will go up or down based on the movement of the
overall stock market and the value of the individual securities held by the
Fund, both of which can sometimes be volatile.
•Management
Risk.
The Scharf Fund is an actively managed portfolio. The Adviser’s management
practices and investment strategies might not produce the desired results. The
Adviser may be incorrect in its assessment of a stock’s appreciation potential.
•Foreign
and Emerging Market Securities Risk.
Investments in foreign currencies and foreign issuers are subject to additional
risks, including political and economic risks, greater volatility, civil
conflicts and war, sanctions or other measures by the United States or other
governments, liquidity risks, currency fluctuations, higher transaction costs,
delayed settlement, possible foreign controls on investment, expropriation and
nationalization risks, and less stringent investor protection and disclosure
standards of foreign markets. Events and evolving conditions in certain
economies or markets may alter the risks associated with investments tied to
countries or regions that historically were perceived as comparatively stable
becoming riskier and more volatile. These risks are magnified in countries in
“emerging markets.” Emerging market countries typically have less-established
market economies than developed countries and may face greater social, economic,
regulatory and political uncertainties. In addition, emerging markets typically
present greater illiquidity and price volatility concerns due to smaller or
limited local capital markets and greater difficulty in determining market
valuations of securities due to limited public information on issuers.
•Depositary
Receipt Risk.
Depositary receipts are subject to many of the risks associated with investing
directly in foreign securities, including, among other things, political, social
and economic developments abroad, currency movements and different legal,
regulatory and tax environments.
•Foreign
Currency Risk.
Currency movements may negatively impact value even when there is no change in
value of the security in the issuer’s home country. Currency management
strategies may substantially change the Scharf Fund’s exposure to currency
exchange rates and could result in losses to the Fund if currencies do not
perform as the Adviser expects.
•Large-Sized
Company Risk.
Larger, more established companies may be unable to respond quickly to new
competitive challenges like changes in consumer tastes or innovative smaller
competitors. In addition, large-cap companies are sometimes unable to attain the
high growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Small-
and Medium-Sized Company Risk.
Small- and medium-sized companies often have less predictable earnings, more
limited product lines, markets, distribution channels or financial resources and
the management of such companies may be dependent upon one or few key people.
The market movements of equity securities of small- and medium-sized companies
may be more abrupt and volatile than the market movements of equity securities
of larger, more established companies or the stock market in general and
small-sized companies in particular, are generally less liquid than the equity
securities of larger companies.
•Investment
Style Risk. The
Adviser follows an investing style that favors relatively low
valuations. At times when this style is out of favor, the Scharf Fund may
underperform funds that follow different investing styles.
•Investment
Company Risk.
When the Scharf Fund invests in an ETF or mutual fund, it will bear additional
expenses based on its pro rata share of the ETF’s or mutual fund’s operating
expenses, including the potential duplication of management fees. The risk of
owning an ETF or mutual fund generally reflects the risks of owning the
underlying securities the ETF or mutual fund holds. The Fund also will incur
brokerage costs when it purchases ETFs.
•Fixed-Income
Securities Risk.
The following risks are associated with the Scharf Fund’s investment in
fixed-income securities.
◦Prepayment
and Extension Risk.
The risk that the securities may be paid off earlier (prepayment) or later
(extension) than expected. Either situation could cause securities to pay
lower-than-market rates of interest, which could hurt the Scharf Fund’s yield or
share price.
◦Interest
Rate Risk.
The Fund’s investments in fixed income securities will change in value based on
changes in interest rates. If rates increase, the value of these investments
generally declines. Securities with greater interest rate sensitivity and longer
maturities generally are subject to greater fluctuations in value.
◦Credit
Risk.
Credit risk is the risk of loss on an investment due to the deterioration of an
issuer’s financial health. Such a deterioration of financial health may result
in a reduction of the credit rating of the issuer’s securities and may lead to
the issuer’s inability to honor its contractual obligations including making
timely payment of interest and principal.
•High-Yield
Securities Risk.
Fixed-income securities that are rated below investment grade (i.e.,
“junk bonds”) are subject to additional risk factors due to the speculative
nature of these securities, such as increased possibility of default liquidation
of the security, and changes in value based on public perception of the issuer.
•Municipal
Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their
issuers or auxiliary credit enhancement features. Municipal securities may be
difficult to obtain because of limited supply, which may increase the cost of
such securities and effectively reduce a portfolio’s yield. Typically, less
information is available about a municipal issuer than is available for other
types of securities issuers.
•Asset-Backed
Securities Risk.
Asset-backed securities are subject to certain risks including prepayment and
call risks. When an obligation is prepaid and when securities are called, the
Fund may have to reinvest in securities with a lower yield or fail to recover
additional amounts (i.e., premiums) paid for securities with higher interest
rates, resulting in an unexpected capital loss and/or
a
decrease in the amount of dividends and yield. In periods of rising interest
rates, the Fund may be subject to extension risk, and may receive principal
later than expected. As a result, in periods of rising interest rates, the Fund
may exhibit additional volatility. During periods of difficult or frozen credit
markets, significant changes in interest rates, or deteriorating economic
conditions, such securities may decline in value, face valuation difficulties,
become more volatile and/or become illiquid.
•Mortgage-Backed
Securities Risk.
In addition to the general risks associated with fixed-income securities as
described above, the structure of certain mortgage-backed securities may make
their reaction to interest rates and other factors difficult to predict, which
may cause their prices to be more volatile than other fixed-income securities.
•Exchange-Traded
Note Risk. The
value of an ETN may be influenced by time to maturity, level of supply and
demand for the ETN, volatility and lack of liquidity in the underlying
securities’ markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that
affect the referenced index. In addition, the notes issued by ETNs
and held by the Scharf Fund are unsecured debt of the issuer.
•Bank
Debt Risk. The
Scharf Fund’s investments in secured and unsecured assignments of bank debt may
create substantial risk. In making investments in such debt, which are loans
made by banks or other financial intermediaries to borrowers, the Fund will
depend primarily upon the creditworthiness of the borrower for payment of
principal and interest.
•Inflation
Protected Securities Risk. The
value of inflation protected securities generally will fluctuate in response to
changes in “real” interest rates, generally decreasing when real interest rates
rise and increasing when real interest rates fall. Real interest rates represent
nominal (or stated) interest rates reduced by the expected impact of inflation.
In addition, interest payments on inflation-indexed securities will generally
vary up or down along with the rate of inflation.
•Convertible
Bond Risk. Convertible
bonds are hybrid securities that have characteristics of both bonds and common
stocks and are therefore subject to both debt security risks and equity
risk. Convertible bonds are subject to equity risk especially when
their conversion value is greater than the interest and principal value of the
bond. The prices of equity securities may rise or fall because of economic or
political changes and may decline over short or extended periods of time.
•Rule
144A Securities Risk.
The market for Rule 144A securities typically is less active than the market for
publicly-traded securities. Rule 144A securities carry the risk that the
liquidity of these securities may become impaired, making it more difficult for
the Scharf Fund to sell these securities.
•Special
Situations Risk.
There is a risk that the special situation (i.e.,
spin-off, liquidation, merger, etc.) might not occur, which could have a
negative impact on the price of the issuer’s securities and fail to produce
gains or produce a loss for the Scharf Fund. In addition, investments in special
situation companies may be illiquid and difficult to value, which will require
the Fund to employ fair value procedures to value its holdings in such
investments.
Performance
The following
information provides some indication of the risks of investing in the Scharf
Fund. The bar chart shows the annual returns for the Fund’s
Institutional Class shares from year to year. The table shows how the Fund’s
average annual returns for 1 year, 5 year, 10 year and since inception compare
with those of a broad measure of market performance. The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available on the Fund’s website at www.scharffunds.com or by calling the Fund toll-free at
866-5SCHARF.
Annual Returns as of December 31 – Institutional
Class
During the period of time shown
in the bar chart, the highest return for a
calendar quarter was 13.16% (quarter ended June 30, 2020) and
the lowest return for a
calendar quarter was -15.60% (quarter ended March 31, 2020).
Total return for the nine months
ended September 30, 2022
(non-annualized) for the Institutional Class was -18.61%.
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Average
Annual Total Returns
(for
the periods ended
December 31, 2021 |
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Institutional
Class(1) |
1
Year |
5
Year |
10
Year |
Since
Inception
(12/30/2011) |
Return Before
Taxes |
21.50% |
13.59% |
13.03% |
13.03% |
Return After Taxes on
Distributions |
18.83% |
11.88% |
11.98% |
11.97% |
Return After Taxes on Distributions and
Sale of Fund Shares |
14.55% |
10.59% |
10.70% |
10.70% |
Retail
Class(1) |
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Return Before
Taxes |
21.15% |
13.26% |
12.73% |
12.73% |
Russell
1000 Value Total Return Index
(reflects
no deduction for fees, expenses or taxes) |
25.16% |
11.16% |
12.97% |
12.96% |
S&P
500®
Index (reflects no deduction for
fees, expenses or taxes) |
28.71% |
18.47% |
16.55% |
16.55% |
(1)The Institutional Class
incepted on December 30, 2011 and the Retail Class incepted on January 28, 2015.
Retail Class performance for the period from December 30, 2011 to January 28,
2015, reflects the performance of the Institutional Class, adjusted to reflect
Retail Class fees and expenses.
The after-tax returns were
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns are not relevant to investors who hold shares of the Fund
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”).
Management
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Investment
Adviser |
Portfolio
Managers |
Scharf
Investments, LLC |
Brian
A. Krawez, CFA (President,
Investment Committee Chairman and Lead Equity Manager)
Has
managed the Fund since inception in 2011. |
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Gabe
Houston (Investment
Committee member, Sr. Research Analyst)
Has
managed the Fund since 2022. |
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Eric
K. Lynch (Managing
Director, Investment Committee member)
Has
managed the Fund since 2022. |
Purchase
and Sale of Fund Shares
You
may purchase, exchange or redeem Scharf Fund shares on any business day by
written request via mail (Scharf Fund, c/o U.S. Bank Global Fund Services, P.O.
Box 701, Milwaukee, Wisconsin 53201-0701), by telephone at 866-5SCHARF or
through a financial intermediary. You may also purchase or redeem Fund shares by
wire transfer. Investors who wish to purchase, exchange or redeem Fund shares
through a financial intermediary should contact the financial intermediary
directly. The minimum initial and subsequent investment amounts are shown below.
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Type
of Account |
To
Open Your Account |
To
Add to Your Account |
Retail
Class |
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Regular |
$10,000 |
$500 |
Automatic
Investment Plan |
$5,000 |
$100 |
Retirement
Accounts |
$5,000 |
$500 |
Institutional
Class |
$1,000,000 |
Any
amount |
Tax
Information
The
Scharf Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you invest through a tax-deferred arrangement, such as a
401(k) plan or an IRA. Distributions on investments made through tax-deferred
arrangements may be taxed later upon withdrawal of assets from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Scharf Fund through a broker-dealer or other financial
intermediary the Fund and/or the Adviser 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.
SUMMARY
SECTION
Scharf Multi-Asset Opportunity Fund
Investment Objective
The Scharf Multi-Asset
Opportunity Fund (the “Multi-Asset Fund” or the “Fund”) seeks long-term capital
appreciation and income.
Fees and Expenses of the Fund
This table describes the fees
and expenses that you may pay if you buy, hold, and sell shares of the
Multi-Asset Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
example below.
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SHAREHOLDER
FEES
(fees
paid directly from your investment) |
Retail
Class |
Institutional
Class |
Redemption
Fee (as
a percentage of amount redeemed on shares held for 15 days or
less) |
2.00% |
2.00% |
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
Management
Fees(1) |
0.65% |
0.65% |
Distribution
and Service (Rule 12b-1) Fees |
0.25% |
None |
Other
Expenses (includes 0.10% Shareholder Servicing Plan Fee) |
0.45% |
0.45% |
Total
Annual Fund Operating Expenses |
1.35% |
1.10% |
Less:
Fee Waiver and/or Expense Reimbursement |
-0.15% |
-0.15% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(2) |
1.20% |
0.95% |
(1)The management fee has
been restated to reflect a lower fee of 0.65% effective January 1, 2023. Prior
to January 1, 2023, the management fee was 0.99% of the Fund’s average daily net
assets.
(2)Scharf
Investments, LLC (the “Adviser”) has contractually agreed to waive a portion or
all of its management fees and pay Multi-Asset Fund expenses in order to limit
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement (excluding AFFE, interest, taxes, extraordinary expenses and
class-specific expenses, such as the distribution (12b-1) fee of 0.25% or
shareholder servicing plan fee of 0.10%) to 0.85% of average daily net assets of
the Fund (the “Expense Cap”). The Expense Cap will remain in effect through at
least January 27,
2024, and may be terminated only by the Fund’s Board of Trustees
(the “Board”). Prior to January 1, 2023, the Fund’s Expense Cap was 0.88%
of the Fund’s average daily net assets. The Adviser may request recoupment of
previously waived fees and expenses from the Fund for 36 months from the date
they were waived or paid, subject to the Expense Cap at the time such amounts
were waived or at the time of recoupment, whichever is lower.
Example
This Example is
intended to help you compare the cost of investing in the Multi-Asset Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem or hold all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same (taking into account the Expense Cap only in the first
year). Although your actual costs may be higher
or lower, based on these assumptions, your costs would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
Retail
Class |
$122 |
$413 |
$725 |
$1,611 |
Institutional
Class |
$97 |
$335 |
$592 |
$1,327 |
Portfolio Turnover
The Multi-Asset Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the Example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 20.53% of the average value of its
portfolio.
Principal Investment Strategies of the
Fund
The
Multi-Asset Fund invests in a mix of equity securities and fixed-income
securities. Under normal market conditions, the Fund allocates between 50% and
75% of its total assets to equity securities. Equity securities in which the
Fund may invest include, but are not limited to, common and preferred stock of
companies of all size market capitalizations, rights and warrants. The Fund may
invest up to 50% of its total assets in securities of foreign issuers listed
foreign exchanges (excluding depositary receipts), including up to 25% of its
total assets in issuers in emerging markets. The Fund may invest without limit
in depositary receipts, such as American Depositary Receipts (“ADRs”), European
Depositary Receipts (“EDRs”) and Global Depositary Receipts (“GDRs”). The Fund
may also invest up to 30% of its total assets in non-money market investment
companies, including exchange-traded funds (“ETFs”). The Fund may also invest up
to 20% of its total assets in Rule 144A securities.
Under
normal market conditions, the Multi-Asset Fund allocates between 25% and 50% of
its total assets to fixed-income securities. Fixed-income securities in which
the Fund may invest include, but are not limited to, those of domestic and
foreign governments, government agencies, foreign corporate bonds,
inflation-protected securities, asset-backed securities, exchange-traded notes
(“ETNs”), money-market instruments, convertible securities, bank debt, limited
partnerships, municipalities and companies across a wide range of industries,
market capitalizations and maturities, and may include, with respect to up to
30% of the Fund’s total assets, those that are rated below investment grade
(i.e.,
“junk bonds”). The types of asset-backed securities in which the Fund may invest
include mortgage-backed securities.
In
general, the Adviser utilizes five key elements in its equity investment
philosophy: low valuation, discount to fair value, investment flexibility, focus
and long-term perspective. Through a proprietary screening process, the Adviser
seeks to identify equity securities with low valuations combined with growing
earnings, cash flow and/or book value. The Multi-Asset Fund may also invest in
“special situations,” which may occur when the securities of a company are
affected by circumstances, including, but not limited to, hidden assets
(i.e.,
assets that may be undervalued on a company’s balance sheet or otherwise
difficult to value and therefore not properly reflected in the company’s share
price), spinoffs, liquidations, reorganizations, recapitalizations, mergers,
management changes and technological changes. The Adviser seeks to identify
fixed-income investments with favorable risk-reward characteristics. In
screening for suitable investments, the Adviser considers many factors,
including yield-to-maturity, credit quality, liquidity, call risk, duration
risk, and capital appreciation potential.
As
part of its research process, the Adviser may consider how environmental, social
and governance (“ESG”) issues affect a company’s long-term outlook, in terms of
opportunities and/or risks for the business and whether such ESG factors have
the potential to influence future stock performance, but such factors are not
determinative (i.e.
they would not lead the Adviser to buy or sell a security without consideration
of other factors in the investment process).
The
Multi-Asset Fund may invest up to 100% of its net assets in cash, cash
equivalents, and high-quality, short-term debt securities, money market mutual
funds and money market instruments due to a lack of suitable investment
opportunities or for temporary defensive purposes.
When selling securities, the Adviser
considers the same factors it uses in evaluating a security for purchase and
generally sells securities that it believes no longer have sufficient upside
potential.
Principal Risks of Investing in the Fund
By
itself, the Fund is not a complete, balanced investment plan. The Fund cannot
guarantee that it will achieve its investment objectives. Losing all or a portion of your investment is a risk of
investing in the Fund. The following risks are considered
principal and could affect the value of your investment in the
Fund:
•General
Market Risk.
Economies
and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including: inflation (or expectations
for inflation); interest rates; global demand for particular products or
resources; natural disasters or events; pandemic diseases; terrorism; regulatory
events; and government controls. U.S. and international markets have experienced
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including the impact of COVID-19 as
a global pandemic, which has resulted in a public health crisis, disruptions to
business operations and supply chains, stress on the global healthcare system,
growth concerns in the U.S. and overseas, staffing shortages and the inability
to meet consumer demand, and widespread concern and uncertainty. The global
recovery from COVID-19 is proceeding at slower than expected rates due to the
emergence of variant strains and may last for an extended period of time.
Continuing uncertainties regarding interest rates, rising inflation, political
events, rising government debt in the U.S. and trade tensions also contribute to
market volatility. As a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the
European Union imposed sanctions on certain Russian individuals and companies,
including certain financial institutions, and have limited certain exports and
imports to and from Russia. The war has contributed to recent market volatility
and may continue to do so.
•Equity
Securities Risk. The
value of the Fund’s shares will go up or down based on the movement of the
overall stock market and the value of the individual securities held by the
Fund, both of which can sometimes be volatile.
•Management
Risk.
The Multi-Asset Fund is an actively managed portfolio. The Adviser’s management
practices and investment strategies might not produce the desired results. The
Adviser may be incorrect in its assessment of a stock’s appreciation potential.
•Foreign
and Emerging Market Securities Risk.
Investments in foreign currencies and foreign issuers are subject to additional
risks, including political and economic risks, greater volatility, civil
conflicts and war, sanctions or other measures by the United States or other
governments, liquidity risks, currency fluctuations, higher transaction costs,
delayed settlement, possible foreign controls on investment, expropriation and
nationalization risks, and less stringent investor protection and disclosure
standards of foreign markets. Events and evolving conditions in certain
economies or markets may alter the risks associated with investments tied to
countries or regions that historically were perceived as comparatively stable
becoming riskier and more volatile. These risks are magnified in countries in
“emerging markets.” Emerging market countries typically have less-established
market economies than developed countries and may face greater social, economic,
regulatory and political uncertainties. In addition, emerging markets typically
present greater illiquidity and price volatility concerns due to smaller or
limited local capital markets and greater difficulty in determining market
valuations of securities due to limited public information on issuers.
•Depositary
Receipt Risk.
Depositary receipts are subject to many of the risks associated with investing
directly in foreign securities, including, among other things, political, social
and economic developments abroad, currency movements and different legal,
regulatory and tax environments.
•Foreign
Currency Risk.
Currency movements may negatively impact value even when there is no change in
value of the security in the issuer’s home country. Currency
management strategies may substantially change the Fund’s exposure to currency
exchange rates and could result in losses to the Multi-Asset Fund if currencies
do not perform as the Adviser expects.
•Large-Sized
Company Risk.
Larger, more established companies may be unable to respond quickly to new
competitive challenges like changes in consumer tastes or innovative smaller
competitors. In addition, large-cap companies are sometimes unable to attain the
high growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Small-
and Medium-Sized Company Risk.
Small-
and medium-sized companies often have less predictable earnings, more limited
product lines, markets, distribution channels or financial resources and the
management of such companies may be dependent upon one or few key people. The
market movements of equity securities of small- and medium-sized companies may
be more abrupt and volatile than the market movements of equity securities of
larger, more established companies or the stock market in general and
small-sized companies in particular, are generally less liquid than the equity
securities of larger companies.
•Investment
Style Risk. The
Adviser follows an investing style that favors relatively low
valuations. At times when this style is out of favor, the Multi-Asset
Fund may underperform funds that follow different investing styles.
•Investment
Company Risk.
When the Multi-Asset Fund invests in an ETF or mutual fund, it will bear
additional expenses based on its pro rata share of the ETF’s or mutual fund’s
operating expenses, including the potential duplication of management fees. The
risk of owning an ETF or mutual fund generally reflects the risks of owning the
underlying securities the ETF or mutual fund holds. The Fund also will incur
brokerage costs when it purchases ETFs.
•Fixed-Income
Securities Risk.
The following risks are associated with the Multi-Asset Fund’s investment in
fixed-income securities.
◦Prepayment
and Extension Risk.
The risk that the securities may be paid off earlier (prepayment) or later
(extension) than expected. Either situation could cause securities to pay
lower-than-market rates of interest, which could hurt the Multi-Asset Fund’s
yield or share price.
◦Interest
Rate Risk.
The Fund’s investments in fixed income securities will change in value based on
changes in interest rates. If rates increase, the value of these investments
generally declines. Securities with greater interest rate sensitivity and longer
maturities generally are subject to greater fluctuations in value.
◦Credit
Risk.
Credit risk is the risk of loss on an investment due to the deterioration of an
issuer’s financial health. Such a deterioration of financial health may result
in a reduction of the credit rating of the issuer’s securities and may lead to
the issuer’s inability to honor its contractual obligations including making
timely payment of interest and principal.
•High-Yield
Securities Risk.
Fixed-income securities that are rated below investment grade (i.e., “junk
bonds”) are subject to additional risk factors due to the speculative nature of
these securities, such as increased possibility of default liquidation of the
security, and changes in value based on public perception of the issuer.
•Municipal
Securities Risk. Municipal
securities rely on the creditworthiness or revenue production of their issuers
or auxiliary credit enhancement features. Municipal securities may be difficult
to obtain because of limited supply, which may increase the cost of such
securities and effectively reduce a portfolio’s yield. Typically, less
information is available about a municipal issuer than is available for other
types of securities issuers.
•Asset-Backed
Securities Risk. Asset-backed
securities are subject to certain risks including prepayment and call risks.
When an obligation is prepaid and when securities are called, the Fund may have
to reinvest in securities with a lower yield or fail to recover additional
amounts (i.e., premiums) paid for securities with higher interest rates,
resulting in an unexpected capital loss and/or a decrease in the amount of
dividends and yield. In periods of rising interest rates, the Fund may be
subject to extension risk, and may receive principal later than expected. As a
result, in periods of rising interest rates, the Fund may exhibit additional
volatility. During periods of difficult or frozen credit markets, significant
changes in interest rates, or deteriorating economic conditions, such securities
may decline in value, face valuation difficulties, become more volatile and/or
become illiquid.
•Mortgage-Backed
Securities Risk.
In addition to the general risks associated with fixed-income securities as
described above, the structure of certain mortgage-backed securities may make
their reaction to interest rates and other factors difficult to predict, which
may cause their prices to be more volatile than other fixed-income securities.
•Exchange-Traded
Note Risk. The
value of an ETN may be influenced by time to maturity, level of supply and
demand for the ETN, volatility and lack of liquidity in the underlying
securities’ markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that
affect the referenced index. In addition, the notes issued by ETNs
and held by a fund are unsecured debt of the issuer.
•Bank
Debt Risk. The
Multi-Asset Fund’s investments in secured and unsecured assignments of bank debt
may create substantial risk. In making investments in such debt,
which are loans made by banks or other financial intermediaries to borrowers,
the Fund will depend primarily upon the creditworthiness of the borrower for
payment of principal and interest.
•Inflation
Protected Securities Risk. The
value of inflation protected securities generally will fluctuate in response to
changes in “real” interest rates, generally decreasing when real interest rates
rise and increasing when real interest rates fall. Real interest rates represent
nominal (or stated) interest rates reduced by the expected impact of inflation.
In addition, interest payments on inflation-indexed securities will generally
vary up or down along with the rate of inflation.
•Convertible
Bond Risk. Convertible
bonds are hybrid securities that have characteristics of both bonds and common
stocks and are therefore subject to both debt security risks and equity
risk. Convertible bonds are subject to equity risk especially when
their conversion value is greater than the interest and principal value of the
bond. The prices of equity securities may rise or fall because of
economic or political changes and may decline over short or extended periods of
time.
•Rule
144A Securities Risk.
The market for Rule 144A securities typically is less active than the market for
publicly-traded securities. Rule 144A securities carry the risk that the
liquidity of these securities may become impaired, making it more difficult for
the Multi-Asset Fund to sell these securities.
•Special
Situations Risk.
There is a risk that the special situation (i.e.,
spin-off, liquidation, merger, etc.) might not occur, which could have a
negative impact on the price of the issuer’s securities and fail to produce
gains or produce a loss for the Multi-Asset Fund. In addition, investments in
special situation companies may be illiquid and difficult to value, which will
require the Fund to employ fair value procedures to value its holdings in such
investments.
Performance
The following
information provides some indication of the risks of investing in the
Multi-Asset Fund. The bar chart shows the annual returns for the
Fund’s Institutional Class shares from year to year. The table shows how the
Fund’s average annual returns for 1 year, 5 years and since inception compare
with those of broad measures of market performance and an index that reflects
the Lipper category applicable
to
the Fund. The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available on the Fund’s website at www.scharffunds.com or by calling the Fund toll-free at
866-5SCHARF.
Annual Returns as of December 31 – Institutional
Class
During the period of time shown
in the bar chart, the highest return for a
calendar quarter was 10.39% (quarter ended June 30, 2020) and
the lowest return for a
calendar quarter was -11.55% (quarter ended March 31, 2020).
Total return for the nine months
ended September 30, 2022
(non-annualized) for the Institutional Class was -16.67%.
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Average
Annual Total Returns
(for
the periods ended
December 31, 2021) |
Institutional
Class(1) |
1
Year |
5
Years |
Since
Inception
(12/31/2012) |
Return Before
Taxes |
15.51% |
10.88% |
9.86% |
Return After Taxes on
Distributions |
13.08% |
9.39% |
8.71% |
Return After Taxes on Distributions and
Sale of Fund Shares |
10.79% |
8.42% |
7.83% |
Retail
Class(1) |
|
| |
Return Before
Taxes |
15.19% |
10.59% |
9.58% |
S&P
500®
Index (reflects no deduction for
fees, expenses or taxes) |
28.71% |
18.47% |
16.61% |
Bloomberg
U.S. Aggregate Bond Index (reflects
no deduction for fees, expenses or taxes) |
-1.54% |
3.57% |
2.75% |
Lipper
Balanced Funds Index (reflects
no deduction for taxes) |
13.18% |
10.80% |
9.29% |
(1)The Institutional Class
incepted on December 31, 2012 and the Retail Class incepted on January 21, 2016.
Retail Class performance for the period from December 31, 2012 to January 21,
2016, reflects the performance of the Institutional Class adjusted to reflect
Retail Class fees and expenses.
The after-tax returns were
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns are not relevant to investors who hold shares of the
Multi-Asset Fund through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts (“IRAs”).
Management
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Investment
Adviser |
Portfolio
Managers |
Scharf
Investments, LLC |
Brian
A. Krawez, CFA (President,
Investment Committee Chairman and Lead Equity Manager)
Has
managed the Fund since inception in 2012. |
|
Gabe
Houston (Investment
Committee Member, Sr. Research Analyst)
Has
managed the Fund since 2022. |
Purchase
and Sale of Fund Shares
You
may purchase, exchange or redeem Multi-Asset Fund shares on any business day by
written request via mail (Scharf Multi-Asset Fund, c/o U.S. Bank Global Fund
Services, P.O. Box 701, Milwaukee, Wisconsin 53201-0701), by telephone at
866-5SCHARF, or through a financial intermediary. You may also purchase or
redeem Fund shares by wire transfer. Investors who wish to purchase, exchange or
redeem Fund shares through a financial intermediary should contact the financial
intermediary directly. The minimum initial and subsequent investment amounts are
shown below.
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Type
of Account |
To
Open Your Account |
To
Add to Your Account |
Retail
Class |
| |
Regular |
$10,000 |
$500 |
Automatic
Investment Plan |
$5,000 |
$100 |
Retirement
Accounts |
$5,000 |
$500 |
Institutional
Class |
$5,000,000 |
Any
Amount |
Tax
Information
The
Multi-Asset Fund’s distributions are taxable, and will be taxed as ordinary
income or capital gains, unless you invest through a tax-deferred arrangement,
such as a 401(k) plan or an IRA. Distributions on investments made through
tax-deferred arrangements may be taxed later upon withdrawal of assets from
those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Multi-Asset Fund through a broker-dealer or other financial
intermediary the Fund and/or the Adviser 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.
SUMMARY
SECTION
Scharf Global Opportunity Fund
Investment Objective
The Scharf Global Opportunity
Fund (the “Global Opportunity Fund” or the “Fund”) seeks long-term capital
appreciation.
Fees and Expenses of the Fund
This table describes the fees
and expenses that you may pay if you buy, hold, and sell shares of the Global
Opportunity Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
example below.
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SHAREHOLDER
FEES
(fees
paid directly from your investment) |
Institutional
Class |
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| |
Redemption
Fee (as
a percentage of amount redeemed on shares held for 15 days or
less) |
2.00% |
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
Management
Fees(1) |
0.70% |
Distribution
and Service (Rule 12b-1) Fees |
None |
Other
Expenses (includes 0.10% Shareholder Servicing Plan Fee) |
0.67% |
Total
Annual Fund Operating Expenses |
1.37% |
Less:
Fee Waiver and/or Expense Reimbursement |
-0.75% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(2) |
0.62% |
(1)The management fee has
been restated to reflect a lower fee of 0.70% effective January 1, 2023. Prior
to January 1, 2023, the management fee was 0.99% of the Fund’s average daily net
assets.
(2)Scharf
Investments, LLC (the “Adviser”) has contractually agreed to waive a portion or
all of its management fees and pay Global Opportunity Fund expenses in order to
limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement (excluding, if applicable, acquired fund fees and expenses,
interest, taxes, extraordinary expenses and class specific expenses, such as the
shareholder servicing plan fee of 0.10%) to 0.52% of average daily net assets of
the Fund (the “Expense Cap”). The Expense Cap will remain in effect through at
least January 27,
2024, and may be terminated only by the Fund’s Board of Trustees
(the “Board”). Prior
to January 1, 2023, the Fund’s Expense Cap was 0.54% of the Fund’s average
daily net assets.
The Fund previously charged a 0.25% Rule 12b-1 fee. The Adviser may request
recoupment from the Fund of previously waived fees and paid expenses for 36
months from the date they were waived or paid, subject to the Expense Cap at the
time such amounts were waived or at the time of recoupment, whichever is lower.
Example
This Example is
intended to help you compare the cost of investing in the Global Opportunity
Fund with the cost of investing in other mutual funds. The Example assumes that
you invest $10,000 in the Fund for the time periods indicated and then redeem or
hold all of your shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating
expenses remain the same (taking into account the Expense Cap only in the first
year). Although your actual costs may be higher
or lower, based on these assumptions, your costs would be:
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1
Year |
3
Years |
5
Years |
10
Years |
$63 |
$360 |
$678 |
$1,581 |
Portfolio Turnover
The Global Opportunity Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction
costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not reflected
in annual fund operating expenses or in the Example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 29.86% of the average value of its
portfolio.
Principal Investment Strategies of the
Fund
The
Global Opportunity Fund primarily invests in U.S. and non-U.S. equity securities
that the Adviser believes have significantly more appreciation potential than
downside risk over the long term. Equity securities in which the Fund may invest
include, but are not limited to, common and preferred stock of companies of all
size market capitalizations, rights and warrants. Under normal circumstances,
the Fund will invest at least 40% of its total assets in non-U.S. securities.
During unusual market conditions, the Fund will invest at least 30% of its total
assets in non-U.S. securities. Such foreign securities may be listed on foreign
exchanges as well as in the form of depositary receipts, such as American
Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”) and Global
Depositary Receipts (“GDRs”). There are no geographic limits on the Fund’s
investments, and the Fund may invest in securities of companies located both in
the U.S. and abroad and in developed or emerging markets. However, the Fund will
invest primarily in the securities of companies located in at least four
different countries. The Fund may also invest up to 30% of its total assets in
non-money market investment companies, including mutual funds and
exchange-traded funds (“ETFs”). The Fund may also invest in Rule 144A
securities. Under normal market conditions, the Fund will typically invest in
less than 50 securities.
In
general, the Adviser utilizes five key elements in its equity investment
philosophy: low valuation, discount to fair value, investment flexibility, focus
and long-term perspective. Through a proprietary screening process, the Adviser
seeks to identify investments with low valuations combined with growing
earnings, cash flow and/or book value. The Global Opportunity Fund may also
invest in “special situations,” which may occur when the securities of a company
are affected by circumstances, including, but not limited to, hidden assets
(i.e.,
assets that may be undervalued on a company’s balance sheet or otherwise
difficult to value and therefore not properly reflected in the company’s share
price), spinoffs, liquidations, reorganizations, recapitalizations, mergers,
management changes and technological changes.
In
addition, the Global Opportunity Fund may invest up to 30% of its total assets
in fixed-income securities. Fixed-income securities in which the Fund may invest
include, but are not limited to, those of domestic and foreign governments,
government agencies, inflation-protected securities, asset-backed securities,
exchange-traded notes (“ETNs”), money market instruments, convertible
securities, bank debt, limited partnerships, municipalities and companies across
a wide range of industries and market capitalizations and may be of any maturity
and include those that are rated below investment grade (i.e.,
“junk bonds”).
The
types of asset-backed securities in which the Fund may invest include
mortgage-backed securities.
As
part of its research process, the Adviser may consider how environmental, social
and governance (“ESG”) issues affect a company’s long-term outlook, in terms of
opportunities and/or risks for the business and whether such ESG factors have
the potential to influence future stock performance, but such factors are not
determinative (i.e.,
they would not lead the Adviser to buy or sell a security without consideration
of other factors in the investment process).
The
Global Opportunity Fund may invest up to 100% of its net assets in cash, cash
equivalents, and high-quality, short-term debt securities, money market mutual
funds and money market instruments due to a lack of suitable investment
opportunities or for temporary defensive purposes.
When selling securities, the Adviser
considers the same factors it uses in evaluating a security for purchase and
generally sells securities that it believes no longer have sufficient upside
potential.
Principal Risks of Investing in the Global Opportunity
Fund
By
itself, the Fund is not a complete, balanced investment plan. The Fund cannot
guarantee that it will achieve its investment objectives. Losing all or a portion of your investment is a risk of
investing in the Fund. The following risks are considered
principal and could affect the value of your investment in the
Fund:
•General
Market Risk.
Economies and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including: inflation (or expectations
for inflation); interest rates; global demand for particular products or
resources; natural disasters or events; pandemic diseases; terrorism; regulatory
events; and government controls. U.S. and international markets have experienced
significant periods of volatility in recent years and months due to a number of
economic, political and global macro factors including the impact of COVID-19 as
a global pandemic, which has resulted in a public health crisis, disruptions to
business operations and supply chains, stress on the global healthcare system,
growth concerns in the United States and overseas, staffing shortages and the
inability to meet consumer demand, and widespread concern and uncertainty. The
global recovery from COVID-19 is proceeding at slower than expected rates due to
the emergence of variant strains and may last for an extended period of time.
Continuing uncertainties regarding interest rates, rising inflation, political
events, rising government debt in the United States and trade tensions also
contribute to market volatility. As a result of continuing political tensions
and armed conflicts, including the war between Ukraine and Russia, the United
States and the European Union imposed sanctions on certain Russian individuals
and companies, including certain financial institutions, and have limited
certain exports and imports to and from Russia. The war has contributed to
recent market volatility and may continue to do so.
•Equity
Securities Risk. The
value of the Fund’s shares will go up or down based on the movement of the
overall stock market and the value of the individual securities held by the
Fund, both of which can sometimes be volatile.
•Management
Risk.
The Global Opportunity Fund is an actively managed portfolio. The Adviser’s
management practices and investment strategies might not produce the desired
results. The Adviser may be incorrect in its assessment of a stock’s
appreciation potential.
•Foreign
and Emerging Market Securities Risk.
Investments in foreign currencies and foreign issuers are subject to additional
risks, including political and economic risks, greater volatility, civil
conflicts and war, sanctions or other measures by the United States or other
governments, liquidity risks, currency fluctuations, higher transaction costs,
delayed settlement, possible foreign controls on investment, expropriation and
nationalization risks, and less stringent investor protection and disclosure
standards of foreign markets. Events and evolving conditions in certain
economies or markets may alter the risks associated with investments tied to
countries or regions that historically were perceived as comparatively stable
becoming riskier and more volatile. These risks are magnified in countries in
“emerging markets.” Emerging market countries typically have less-established
market economies than developed countries and may face greater social, economic,
regulatory and political uncertainties. In addition, emerging markets typically
present greater illiquidity and price volatility concerns due to smaller or
limited local capital markets and greater difficulty in determining market
valuations of securities due to limited public information on issuers.
•Depositary
Receipt Risk. Depositary
receipts are subject to many of the risks associated with investing directly in
foreign securities, including, among other things, political, social and
economic developments abroad, currency movements and different legal, regulatory
and tax environments.
•Foreign
Currency Risk.
Currency movements may negatively impact value even when there is no change in
value of the security in the issuer’s home country. Currency management
strategies may substantially change the Global Opportunity Fund’s exposure to
currency exchange rates and could result in losses to the Fund if currencies do
not perform as the Adviser expects.
•Large-Sized
Company Risk.
Larger, more established companies may be unable to respond quickly to new
competitive challenges like changes in consumer tastes or innovative smaller
competitors. In addition, large-cap companies are sometimes unable to attain the
high growth rates of successful, smaller companies, especially during extended
periods of economic expansion.
•Small-
and Medium-Sized Company Risk.
Small- and medium-sized companies often have less predictable earnings, more
limited product lines, markets, distribution channels or financial resources and
the management of such companies may be dependent upon one or few key people.
The market movements of equity securities of small- and medium-sized companies
may be more abrupt and volatile than the market movements of equity securities
of larger, more established companies or the stock market in general and
small-sized companies in particular, are generally less liquid than the equity
securities of larger companies.
•Investment
Style Risk. The
Adviser follows an investing style that favors relatively low
valuations. At times when this style is out of favor, the Global
Opportunity Fund may underperform funds that follow different investing styles.
•Investment
Company Risk.
When the Global Opportunity Fund invests in an ETF or mutual fund, it will bear
additional expenses based on its pro rata share of the ETF’s or mutual fund’s
operating expenses, including the potential duplication of management fees. The
risk of owning an ETF or mutual fund generally reflects the risks of owning the
underlying securities the ETF or mutual fund holds. The Fund also will incur
brokerage costs when it purchases ETFs.
•Fixed-Income
Securities Risk.
The following risks are associated with the Global Opportunity Fund’s investment
in fixed-income securities.
◦Prepayment
and Extension Risk.
The risk that the securities may be paid off earlier (prepayment) or later
(extension) than expected. Either situation could cause securities to pay
lower-than-market rates of interest, which could hurt the Global Opportunity
Fund’s yield or share price.
◦Interest
Rate Risk.
The Fund’s investments in fixed income securities will change in value based on
changes in interest rates. If rates increase, the value of these investments
generally declines. Securities with greater interest rate sensitivity and longer
maturities generally are subject to greater fluctuations in value.
◦Credit
Risk.
Credit risk is the risk of loss on an investment due to the deterioration of an
issuer’s financial health. Such a deterioration of financial health may result
in a reduction of the credit rating of the issuer’s securities and may lead to
the issuer’s inability to honor its contractual obligations including making
timely payment of interest and principal.
•High-Yield
Securities Risk.
Fixed-income securities that are rated below investment grade (i.e.,
“junk bonds”) are subject to additional risk factors due to the speculative
nature of these securities, such as increased possibility of default liquidation
of the security, and changes in value based on public perception of the issuer.
•Municipal
Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their
issuers or auxiliary credit enhancement features. Municipal securities may be
difficult to obtain because of limited supply, which may increase the cost of
such securities and effectively reduce a portfolio’s yield. Typically, less
information is available about a municipal issuer than is available for other
types of securities issuers.
•Asset-Backed
Securities Risk.
Asset-backed securities are subject to certain risks including prepayment and
call risks. When an obligation is prepaid and when securities are called, the
Fund may have to reinvest in securities with a lower yield or fail to recover
additional amounts (i.e.,
premiums) paid for securities with higher interest rates, resulting in an
unexpected capital loss and/or a decrease in the amount of dividends and yield.
In periods of rising interest rates, the Fund may be subject to extension risk,
and may receive principal later than expected. As a result, in periods of rising
interest rates, the Fund may exhibit additional volatility. During periods of
difficult or frozen credit markets, significant changes in interest rates, or
deteriorating economic conditions, such securities may decline in value, face
valuation difficulties, become more volatile and/or become illiquid.
•Mortgage-Backed
Securities Risk.
In addition to the general risks associated with fixed-income securities as
described above, the structure of certain mortgage-backed securities may make
their reaction to interest rates and other factors difficult to predict, which
may cause their prices to be more volatile than other fixed-income securities.
•Exchange-Traded
Note Risk. The
value of an ETN may be influenced by time to maturity, level of supply and
demand for the ETN, volatility and lack of liquidity in the underlying
securities’ markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that
affect the referenced index. In addition, the notes issued by ETNs
and held by the Global Opportunity Fund are unsecured debt of the issuer.
•Bank
Debt Risk. The
Global Opportunity Fund’s investments in secured and unsecured assignments of
bank debt may create substantial risk. In making investments in such
debt, which are loans made by banks or other financial intermediaries to
borrowers, the Fund will depend primarily upon the creditworthiness of the
borrower for payment of principal and interest.
•Inflation
Protected Securities Risk. The
value of inflation protected securities generally will fluctuate in response to
changes in “real” interest rates, generally decreasing when real interest rates
rise and increasing when real interest rates fall. Real interest rates represent
nominal (or stated) interest rates reduced by the expected impact of inflation.
In addition, interest payments on inflation-indexed securities will generally
vary up or down along with the rate of inflation.
•Convertible
Bond Risk. Convertible
bonds are hybrid securities that have characteristics of both bonds and common
stocks and are therefore subject to both debt security risks and equity
risk. Convertible bonds are subject to equity risk especially when their
conversion value is greater than the interest and principal value of the
bond. The prices of equity securities may rise or fall because of economic
or political changes and may decline over short or extended periods of time.
•Rule
144A Securities Risk.
The market for Rule 144A securities typically is less active than the market for
publicly-traded securities. Rule 144A securities carry the risk that the
liquidity of these securities may become impaired, making it more difficult for
the Global Opportunity Fund to sell these securities.
•Special
Situations Risk.
There is a risk that the special situation (i.e.,
spin-off, liquidation, merger, etc.) might not occur, which could have a
negative impact on the price of the issuer’s securities and fail to produce
gains or produce a loss for the Global Opportunity Fund. In addition,
investments in special situation companies may be illiquid and difficult to
value, which will require the Fund to employ fair value procedures to value its
holdings in such investments.
Performance
The following
information provides some indication of the risks of investing in the Global
Opportunity Fund. The bar chart shows the annual return for the
Fund’s Institutional Class shares from year to year. The table shows how the
Fund’s average annual returns for 1 year, 5 years, and since inception compare
with that of a broad measure of market performance. The Fund’s Retail Share
Class was redesignated into
an
Institutional Share Class on December 30, 2022. Institutional Class performance
shown prior to this date is for the Retail Class. As each share class would be
invested in the same portfolio of securities returns would be similar and would
differ only to the extent that the classes do not have the same expenses.
The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available on the Fund’s website at www.scharffunds.com or by calling the Fund toll-free at
866-5SCHARF.
Annual Returns as of December 31 – Institutional
Class
During the period of time shown
in the bar chart, the highest return for a
calendar quarter was 15.08% (quarter ended December 31, 2020)
and the lowest return for a
calendar quarter was -18.64% (quarter ended March 31, 2020).
Total return for the nine months
ended September 30, 2022
(non-annualized) for the Institutional Class was -22.34%.
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Average
Annual Total Returns
(for
the periods ended
December 31, 2021) |
|
Institutional
Class (formerly, Retail Class) |
1
Year |
5
Years |
Since
Inception
(10/14/2014) |
Return Before
Taxes |
16.53% |
14.05% |
11.81% |
Return After Taxes on
Distributions |
13.89% |
12.11% |
10.27% |
Return After Taxes on Distributions and
Sale of Fund Shares |
11.54% |
10.92% |
9.28% |
MSCI
All Country World Index (reflects no deduction for
fees, expenses or taxes) |
18.54% |
14.40% |
11.37% |
The after-tax returns were
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns are not relevant to investors who hold shares of the Global
Opportunity Fund through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts (“IRAs”).
Management
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Investment
Adviser |
Portfolio
Managers |
Scharf
Investments, LLC |
Brian
A. Krawez, CFA (President,
Investment Committee Chairman and Lead Equity Manager)
Has
managed the Fund since inception in 2014. |
|
Gabe
Houston (Investment
Committee Member, Sr. Research Analyst)
Has
managed the Fund since 2022. |
Purchase
and Sale of Fund Shares
You
may purchase, exchange or redeem Global Opportunity Fund shares on any business
day by written request via mail (Scharf Global Opportunity Fund, c/o U.S. Bank
Global Fund Services, P.O. Box 701, Milwaukee, Wisconsin 53201-0701), by
telephone at 866-5SCHARF, or through a financial intermediary. You may also
purchase or redeem Fund shares by wire transfer. Investors who wish to purchase,
exchange or redeem Fund shares through a financial intermediary should contact
the financial intermediary directly. The minimum initial and subsequent
investment amounts are shown below.
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Type
of Account |
To
Open Your Account |
To
Add to Your Account |
Institutional
Class |
$10,000 |
Any
Amount |
Tax
Information
The
Global Opportunity Fund’s distributions are taxable, and will be taxed as
ordinary income or capital gains, unless you invest through a tax-deferred
arrangement, such as a 401(k) plan or an IRA. Distributions on investments made
through tax-deferred arrangements may be taxed later upon withdrawal of assets
from those accounts.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Global Opportunity Fund through a broker-dealer or other
financial intermediary, the Fund and/or the Adviser 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.
PRINCIPAL
INVESTMENT STRATEGIES AND RELATED RISKS
Principal
Investment Strategies
Scharf
Fund
Investment
Objective
The
Scharf Fund seeks long-term capital appreciation.
Under
normal market conditions, the Scharf Fund primarily invests in equity securities
that the Adviser believes have significantly more appreciation potential than
downside risk over the long term. Equity securities in which the Fund may invest
include, but are not limited to, common and preferred stocks of companies of all
size market capitalizations, convertible securities, rights and warrants. The
Fund may invest up to 50% of its total assets in securities of foreign issuers
listed on foreign exchanges (excluding depositary receipts), including up to 25%
of its total assets in issuers in emerging markets. The Fund may invest without
limit in depositary receipts, such as ADRs, EDRs and GDRs. The Fund may also
invest up to 30% of its total assets in other investment companies, including
ETFs. The Fund may also invest in Rule 144A securities.
In
addition, the Scharf Fund may invest up to 30% of its total assets in
fixed-income securities. Fixed-income securities in which the Fund may
invest include, but are not limited to, those of domestic and foreign
governments, government agencies, inflation-protected securities, asset-backed
securities, ETNs, money market instruments, convertible securities, bank debt,
limited partnerships, municipalities and companies across a wide range of
industries, market capitalizations and maturities and may include those that are
rated below investment grade (i.e.,
“junk bonds”). The types of asset-backed securities in which the Fund may invest
include mortgage-backed securities.
Scharf
Multi-Asset Opportunity Fund
Investment
Objective
The
Multi-Asset Fund seeks long-term capital appreciation and income.
The
Multi-Asset Fund invests in a mix of equity securities and fixed-income
securities. Under normal market conditions, the Fund allocates between 50% and
75% of its total assets to equity securities. Equity securities in which the
Fund may invest include, but are not limited to, common and preferred stock of
companies of all size market capitalizations, rights and warrants. The Fund may
invest up to 50% of its total assets in securities of foreign issuers listed on
foreign exchanges (excluding depositary receipts) including up to 25% of its
total assets in issuers in emerging markets. The Fund may invest without limit
in depositary receipts, such as ADRs, EDRs and GDRs. The Fund may also invest up
to 30% of its total assets in other investment companies, including ETFs. The
Fund may also invest up to 20% of its total assets in Rule 144A
securities.
Under
normal market conditions the Multi-Asset Fund allocates between 25% and 50% of
its total assets to fixed-income securities. Fixed-income securities in which
the Fund may invest include, but are not limited to, those of domestic and
foreign governments, government agencies, foreign corporate bonds,
inflation-protected securities, asset-backed securities, ETNs, money-market
instruments, convertible securities, bank debt, limited partnerships,
municipalities and companies across a wide range of industries, market
capitalizations and maturities, and may include, with respect to up to 30% of
the Fund’s total assets, those that are rated below investment grade
(i.e.,
“junk bonds”). The types of asset-backed securities in which the Fund may invest
include mortgage-backed securities. The mix of fixed-
income
securities will vary based on the Adviser’s appraisal of the economy, the
relative yields between various securities, the projected slope of the yield
curve, as well as other factors.
The
Adviser seeks to identify fixed-income investments with favorable risk-reward
characteristics. In screening for suitable investments, the Adviser considers
many factors, including yield-to-maturity, credit quality, liquidity, call risk,
duration risk, and capital appreciation potential. Generally, only a small
fraction of the fixed-income securities screened meet the Adviser’s criteria and
qualify for further fundamental research. Such research consists of qualitative
confirmation of the potential identified by the screen as well as an assessment
of the underlying financial condition and prospects of the issuer.
Scharf
Global Opportunity Fund
Investment
Objective
The
Global Opportunity Fund seeks long-term capital appreciation.
The
Global Opportunity Fund primarily invests in U.S. and non-U.S. equity securities
that the Adviser believes have significantly more appreciation potential than
downside risk over the long term. Equity securities in which the Fund may invest
include, but are not limited to, common and preferred stock of companies of all
size market capitalizations, rights and warrants. Foreign securities in which
the Fund may invest may be domiciled in countries outside of the United States
and may be securities listed on foreign exchanges as well as in the form of
depositary receipts, such as ADRs, EDRs and GDRs. There are no geographic limits
on the Fund’s investments, and the Fund may invest without limit in securities
of companies located both in the U.S. and abroad, and in developed or emerging
markets. The Fund will invest primarily in the securities of companies located
in at least four different countries. The Fund may also invest up to 30% of its
total assets in other investment companies, including mutual funds and ETFs. The
Fund may also invest in Rule 144A securities. Under normal market conditions,
the Fund will typically invest in less than 50 securities.
In
addition, the Global Opportunity Fund may invest up to 30% of its total assets
in fixed-income securities. Fixed-income securities in which the Fund may invest
include, but are not limited to, those of domestic and foreign governments,
government agencies, inflation-protected securities, asset-backed securities,
ETNs, money market instruments, convertible securities, bank debt, limited
partnerships, municipalities and companies across a wide range of industries and
market capitalizations and may be of any maturity and include those that are
rated below investment grade (i.e.,
“junk bonds”).
The
types of asset-backed securities in which the Fund may invest include
mortgage-backed securities.
Principal
Investment Strategies Applicable to All Funds
Through
a proprietary screening process, the Adviser seeks to identify investments with
low valuations combined with growing consistent and sustainable earnings, cash
flow and/or book value.
The
Adviser regularly screens for stocks that satisfy its criteria. Generally, only
a small fraction of the stocks screened meet the Adviser’s criteria and qualify
for further fundamental research. Such research consists of qualitative
confirmation of the potential identified by the screen. This may include
examination of a company’s annual reports and other shareholder materials, as
well as contacting the company’s management.
In
general, the Adviser utilizes five key elements in its investment
philosophy:
1.
Low Valuation – The Adviser employs a bottom-up, valuation-oriented investment
strategy. The Adviser believes that companies with low valuation ratios (low
price to earnings, low price to cash and low price to book value) outperform
stocks with higher valuations over the long term.
2.
Discount to Fair Value – Because value may not be easy to discern and may not be
precisely quantifiable, the Adviser attempts to purchase securities trading at a
significant discount to what the Adviser believes to be fair value. By
purchasing securities only when they are at a significant discount to fair
value, the Adviser hopes to mitigate downside risk.
3.
Investment Flexibility - Opportunities are not confined within style boxes. The
Adviser searches for compelling investments in companies large and small,
foreign and domestic. The Adviser’s proprietary screen applies across the
investment spectrum.
4.
Focus – Each Fund will typically be constructed with only the Adviser’s top
ideas at the time of purchase. The Adviser believes that owning too many stocks
can be counterproductive to enhancing the risk/reward profile of each
Fund.
5.
Long-Term Perspective – The Adviser believes that the appropriate measurement
period for the success of its investment strategy is a complete market cycle;
that is, from peak to the succeeding peak or a trough to the succeeding trough.
This may enable the Adviser to take advantage of opportunities that investors
with shorter time horizons may overlook.
As
part of its research process, the Adviser may consider how environmental, social
and governance (“ESG”) issues affect a company’s long-term outlook, in terms of
opportunities and/or risks for the business and whether such ESG factors have
the potential to influence future stock performance, but such factors are not
determinative (i.e.,
they would not lead the Adviser to buy or sell a security without consideration
of other factors in the investment process).
The
Funds may also invest in “special situations,” which may occur when the
securities of a company are affected by circumstances including, but not limited
to, hidden assets (i.e., assets that may be undervalued on a company’s balance
sheet or otherwise difficult to value and therefore not properly reflected in
the company’s share price), spinoffs, liquidations, reorganizations,
recapitalizations, mergers, management changes and technological changes.
Valuation of securities experiencing special situations may include, but is not
limited to, sum-of-the-parts analysis, comparables and liquidation
value.
When
selling securities, the Adviser considers the same factors it uses in evaluating
a security for purchase and generally sells securities that it believes no
longer have sufficient upside potential.
Cash
and Cash Equivalent Holdings
Each
Fund may invest up to 100% of its net assets in cash, cash equivalents, and
high-quality, short-term debt securities, money market mutual funds and money
market instruments due to a lack of suitable investment opportunities or for
temporary defensive purposes in response to adverse market, economic, political
or other conditions. This may result in a Fund not achieving its investment
objective and the Fund’s performance may be negatively affected as a
result.
To
the extent that a Fund uses a money market fund or an exchange-traded fund for
its cash position, there will be some duplication of expenses because the Fund
would bear its pro rata portion of such money market fund’s or exchange-traded
fund’s management fees and operational expenses.
Each
Fund may also use other investment strategies and invest its assets in other
types of investments, which are described in the Funds’ Statement of Additional
Information (“SAI”).
Principal
Risks of Investing in the Funds
The
principal risks of investing in the Funds that may adversely affect a Fund’s net
asset value (“NAV”) or total return were previously summarized and are discussed
in more detail below. There can be no
assurance
that the Funds will achieve their investment objectives. Unless stated
otherwise, references throughout this section to “the Fund” apply to each of the
Funds.
Market
and Regulatory Risk.
Events
in the financial markets and economy may cause volatility and uncertainty and
adversely affect performance. Such adverse effect on performance could include a
decline in the value and liquidity of securities held by the Fund, unusually
high and unanticipated levels of redemptions, an increase in portfolio turnover,
a decrease in NAV, and an increase in Fund expenses. It may also be unusually
difficult to identify both investment risks and opportunities, in which case
investment goals may not be met. Market events may affect a single issuer,
industry, sector, or the market as a whole. In addition, because of
interdependencies between markets, events in one market may adversely impact
markets or issuers in which the Fund invests in unforeseen ways. Traditionally
liquid investments may experience periods of diminished liquidity. During a
general downturn in the financial markets, multiple asset classes may decline in
value and the Fund may lose value, regardless of the individual results of the
securities and other instruments in which the Fund invests. It is impossible to
predict whether or for how long such market events will continue, particularly
if they are unprecedented, unforeseen or widespread events or conditions.
Therefore, it is important to understand that the value of your investment may
fall, sometimes sharply and for extended periods, and you could lose money.
Governmental and regulatory actions, including tax law changes, may also impair
portfolio management and have unexpected or adverse consequences on particular
markets, strategies, or investments. In addition, unexpected events and their
aftermaths, such as the spread of deadly diseases; natural, environmental or
man-made disasters; financial, political or social disruptions; terrorism and
war; and other tragedies or catastrophes, can cause investor fear and panic,
which can adversely affect the economies of many companies, sectors, nations,
regions and the market in general, in ways that cannot necessarily be
foreseen.
Equity
Securities Risk.
The Fund is designed for long-term investors who can accept the risks of
investing in a portfolio with significant common stock holdings. Common stocks
tend to be more volatile than other investment choices such as bonds and money
market instruments. The value of the Fund’s shares will fluctuate as a result of
the movement of the overall stock market or of the value of the individual
securities held by the Fund, and you could lose money.
Management
Risk.
Management risk describes the Fund’s ability to meet investment objectives based
on the Adviser’s success or failure at implementing investment strategies for
the Fund. The value of your investment is subject to the effectiveness of the
Adviser’s research, analysis, asset allocation among portfolio securities and
ability to identify a stock’s appreciation potential. If the Adviser’s
investment strategies do not produce the expected results, your investment could
be diminished.
Foreign
and Emerging Market Securities Risk.
The Fund may invest a portion (or all, with respect to the Global Opportunity
Fund) of its total assets in securities of foreign issuers. Securities of
foreign issuers may be denominated in U.S. dollars or in currencies other than
U.S. dollars. Investments in securities of foreign issuers present certain risks
not ordinarily associated with investments in securities of U.S. issuers. These
risks include fluctuations in foreign currency exchange rates, political,
economic or legal developments (including war or other instability,
expropriation of assets, nationalization and confiscatory taxation), the
imposition of foreign exchange limitations (including currency blockage),
withholding taxes on income or capital transactions or other restrictions,
higher transaction costs (including higher brokerage, custodial and settlement
costs and currency conversion costs) and possible difficulty in enforcing
contractual obligations or taking judicial action. Securities of foreign issuers
may not be as liquid and may be more volatile than comparable securities of
domestic issuers.
In
addition, there often is less publicly available information about many foreign
issuers, and issuers of foreign securities are subject to different, often less
comprehensive, auditing, accounting and financial reporting disclosure
requirements than domestic issuers. There is generally less government
regulation of
exchanges,
brokers and listed companies abroad than in the United States and, with respect
to certain foreign countries, there is a possibility of expropriation or
confiscatory taxation, or diplomatic developments which could affect investment
in those countries. Because there is usually less supervision and governmental
regulation of foreign exchanges, brokers and dealers than there is in the United
States, the Fund may experience settlement difficulties or delays not usually
encountered in the United States.
Delays
in making trades in securities of foreign issuers relating to volume
constraints, limitations or restrictions, clearance or settlement procedures, or
otherwise, could impact returns and result in temporary periods when assets of
the Fund are not fully invested or attractive investment opportunities are
foregone.
The
Fund may invest in securities of issuers determined by the Adviser to be in
developing or emerging market countries. Investments in securities of issuers in
developing or emerging market countries are subject to greater risks than
investments in securities of developed countries since emerging market countries
tend to have economic structures that are less diverse and mature and political
systems that are less stable than developed countries.
Depositary
Receipt Risk.
The Fund may invest in securities of foreign issuers in the form of depositary
receipts. Depositary receipts involve substantially identical risks to those
associated with direct investment in securities of foreign issuers. In addition,
the underlying issuers of certain depositary receipts, particularly unsponsored
or unregistered depositary receipts, are under no obligation to distribute
shareholder communications to the holders of such receipts, or to pass through
to them any voting rights with respect to the deposited securities.
Foreign
Currency Risk.
Since the Fund may invest in securities denominated or quoted in currencies
other than the U.S. dollar, the Fund may be affected by changes in foreign
currency exchange rates (and exchange control regulations) which affect the
value of investments in the Fund and the accrued income and appreciation or
depreciation of the investments. Changes in foreign currency exchange
rates relative to the U.S. dollar will affect the U.S. dollar value of the
Fund’s assets denominated in that currency and the Fund’s return on such assets
as well as any temporary un-invested reserves in bank deposits in foreign
currencies. In addition, the Fund will incur costs in connection with
conversions between various currencies.
Large-Cap
Companies Risk.
The
stocks of larger companies may underperform relative to those of small and
mid-sized companies. Larger, more established companies may be unable to respond
quickly to new competitive challenges, such as changes in technology and
consumer tastes. Many larger companies may not be able to attain the high growth
rate of successful smaller companies, especially during extended periods of
economic expansion.
Small-
and Medium-Sized Company Risk.
The securities of smaller or medium-sized companies may be subject to more
abrupt or erratic market movements than securities of larger-sized companies or
the market averages in general. In addition, such companies typically
are subject to a greater degree of change in earnings and business prospects
than are larger companies. Thus, to the extent the Fund invests in
smaller or medium-sized companies, the Fund may be subject to greater investment
risk than that assumed through investment in the equity securities of
larger-sized companies.
Investment
Style Risk. Stocks
with relatively low valuations may perform differently from the market as a
whole and from other types of stocks. At times when these securities
are out of favor, the Fund may underperform funds that follow different
investing styles. Investing
in such undervalued securities involves risks that such securities may never
reach their expected market value, either because the market fails to recognize
a security’s intrinsic worth or the expected value is overestimated. Such
securities may decline in value even though they are already
undervalued.
Investment
Company Risk.
If the Fund invests in shares of another mutual fund, shareholders will
indirectly bear fees and expenses charged by the underlying mutual funds in
which the Fund invests in addition to the Fund’s direct fees and expenses. The
Fund also will incur brokerage costs when it purchases ETFs. Furthermore,
investments in other mutual funds could affect the timing, amount and character
of distributions to shareholders and therefore may increase the amount of taxes
payable by investors in the Fund.
When
the Fund invests in an ETF, it will bear additional expenses based on its pro
rata share of the ETF’s operating expenses, including the potential duplication
of management fees. The risk of owning an ETF generally reflects the risks of
owning the underlying securities it holds. Many ETFs seek to replicate a
specific benchmark index. However, an ETF may not fully replicate the
performance of its benchmark index for many reasons. These reasons include the
temporary unavailability of certain index securities in the secondary market or
discrepancies between the ETF and the index with respect to the weighting of
securities or the number of stocks held. Lack of liquidity in an ETF could
result in an ETF being more volatile than the underlying portfolio of securities
it holds. In addition, because of ETF expenses, compared to owning the
underlying securities directly, it may be more costly to own an
ETF.
Fixed-Income
Securities Risk. The
following risks are associated with the Fund’s investment in fixed-income
securities:
•Prepayment
and Extension Risk. The
risk that the securities may be paid off earlier or later than
expected. Either situation could cause securities to pay
lower-than-market rates of interest, which could hurt the Fund’s yield or share
price. In addition, rising interest rates tend to extend the duration
of certain fixed-income securities, making them more sensitive to changes in
interest rates. As a result, in a period of rising interest rates, the Fund may
exhibit additional volatility. When interest rates decline, borrowers
may pay off their fixed-income securities sooner than expected. This can reduce
the returns of the Fund because the Fund will have to reinvest that money at the
lower prevailing interest rates.
•Interest
Rate Risk.
Bond prices generally rise when interest rates decline and decline when interest
rates rise. The longer the duration of a bond, the more a change in interest
rates affects the bond’s price. Short-term and long-term interest rates may not
move the same amount and may not move in the same direction.
•Credit
Risk. Credit
risk is the risk of loss on an investment due to the deterioration of an
issuer’s financial health. Such a deterioration of financial health
may result in a reduction of the credit rating of the issuer’s securities and
may lead to the issuer’s inability to honor its contractual obligations
including making timely payment of interest and/or principal. There
is also the risk that the securities could lose value because of a loss of
confidence in the ability of the issuer to pay back interest and/or
principal. Lower rated fixed-income securities involve greater credit
risk, including the possibility of default or bankruptcy.
High-Yield
Securities Risk. Fixed-income
securities receiving below investment grade ratings (i.e.,
“junk bonds”) may have speculative characteristics, and, compared to
higher-grade securities, may have a weakened capacity to make principal and
interest payments due to adverse economic conditions or other
circumstances. High-yield, high risk, and lower-rated securities are
subject to additional risk factors due to the speculative nature of these
securities, such as increased possibility of default, decreased liquidity, and
fluctuations in value due to public perception of the issuer of such
securities. These securities are almost always uncollateralized and
subordinate to other debt that an issuer may have outstanding. In
addition, both individual high-yield securities and the entire high-yield bond
market can experience sharp price swings due to a variety of factors, including
changes in economic forecasts, stock market activity, large sustained sales by
major investors, or, a higher profile default.
Municipal
Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their
issuers or auxiliary credit enhancement features. Municipal securities may be
difficult to obtain because of limited supply, which may increase the cost of
such securities and effectively reduce a portfolio’s yield. Typically, less
information is available about a municipal issuer than is available for other
types of securities issuers. Failure of a municipal security issuer to comply
with applicable tax requirements may make income paid thereon taxable, resulting
in a decline in the security’s value. In addition, there could be changes in
applicable tax laws or tax treatments that reduce or eliminate the current
federal income tax exemption on municipal securities or otherwise adversely
affect the current federal or state tax status of municipal
securities.
Asset-Backed
Securities Risk.
Asset-Backed Securities Risk includes Interest Rate Risk, Credit Risk,
Prepayment Risk, as well as the risk that the structure of certain
mortgage-backed securities may make their reaction to interest rates and other
factors difficult to predict, making their prices very
volatile. Under certain adverse market conditions, asset-backed
securities may have more limited liquidity than usual.
Mortgage-Backed
Securities Risk. In
addition to the general risks associated with fixed income securities as
described above, the structure of certain mortgage-backed securities may make
their reaction to interest rates and other factors difficult to predict, which
may cause their prices to be more volatile than other fixed income securities.
In particular, past events related to the U.S. housing market have had a severe
negative impact on the value of some mortgage-backed securities and resulted in
an increased risk associated with investments in these securities.
Exchange-Traded
Note Risk. ETNs
are subject to the credit risk of the issuer. The value of an ETN will vary and
will be influenced by its time to maturity, level of supply and demand for the
ETN, volatility and lack of liquidity in underlying securities, currency and
commodities markets as well as changes in the applicable interest rates, changes
in the issuer’s credit rating, and economic, legal, political, or geographic
events that affect the referenced index. There may be restrictions on
the Fund’s right to redeem its investment in an ETN, which is meant to be held
until maturity. The Fund’s decision to sell its ETN holdings may be limited by
the availability of a secondary market.
Bank
Debt Risk. The
Fund’s investments in assignments of secured and unsecured bank debt may create
substantial risk. In making investments in such debt, which are loans
made by banks or other financial intermediaries to borrowers, the Fund will
depend primarily upon the creditworthiness of the borrower for payment of
principal and interest. If the Fund does not receive scheduled
interest or principal payments on such indebtedness, the Fund’s share price
could be adversely affected. The Fund may invest in debt that is
rated by a nationally recognized statistical rating organization or are unrated,
and may invest in debt of any credit quality, including “distressed” companies
with respect to which there is a substantial risk of losing the entire amount
invested. In addition, certain bank debt in which the Fund may invest
may be illiquid and, therefore, difficult to value and/or sell at a price that
is beneficial to the Fund.
Inflation
Protected Securities Risk. Inflation
protected securities are intended to protect against inflation by adjusting the
interest or principal payable on the security by an amount based upon an index
intended to measure the rate of inflation. There is always the risk
that the rate of inflation will be lower than expected or that the relevant
index intended to measure the rate of inflation will not accurately measure the
rate of inflation and the securities will not work as intended.
Convertible
Bond Risk. Convertible
bonds are hybrid securities that have characteristics of both bonds and common
stocks and are therefore subject to both debt security risk and conversion
value-related equity risk. Convertible bonds are similar to other fixed-income
securities because they usually pay a fixed interest rate and are obligated to
repay principal on a given date in the future. The market value of fixed-income
securities tends to decline as interest rates increase. Convertible bonds are
particularly sensitive to changes in interest rates when their conversion to
equity feature is small relative to the interest and principal value of the
bond. Convertible issuers may not be able to make principal and interest
payments on the bond as they become due. Convertible bonds may also be subject
to prepayment
or
redemption risk. If a convertible bond held by the Fund is called for
redemption, the Fund will be required to surrender the security for redemption
and convert it into the issuing company’s common stock or cash at a time that
may be unfavorable to the Fund. Convertible securities have characteristics
similar to common stocks especially when their conversion value is greater than
the interest and principal value of the bond. The prices of equity securities
may rise or fall because of economic or political changes. Stock prices in
general may decline over short or even extended periods of time. Market prices
of equity securities in broad market segments may be adversely affected by a
prominent issuer having experienced losses or by the lack of earnings or such an
issuer’s failure to meet the market’s expectations with respect to new products
or services, or even by factors wholly unrelated to the value or condition of
the issuer, such as changes in interest rates. When a convertible bond’s
value is more closely tied to its conversion to stock feature, it is sensitive
to the underlying stock’s price.
Rule
144A Securities Risk. The
market for Rule 144A securities typically is less active than the market for
publicly-traded securities. Rule 144A securities carry the risk that
the trading market may not continue and the Fund might be unable to dispose of
these securities promptly or at reasonable prices and might thereby experience
difficulty satisfying redemption requirements.
Special
Situations Risk. Investments
in special situations may involve greater risks when compared to the Fund’s
other strategies due to a variety of factors. Mergers, reorganizations,
liquidations, or recapitalizations may not be completed on the terms originally
contemplated, or may fail. Expected developments may not occur in a timely
manner, or at all. Transactions may take longer than originally anticipated,
resulting in lower annualized returns than contemplated at the time of
investment. Furthermore, failure to anticipate changes in the circumstances
affecting these types of investments may result in permanent loss of capital,
where the Fund may be unable to recoup some or all of its investment, producing
a loss for the Fund. In addition, investments in special situation companies may
be illiquid and difficult to value, which will require the Fund to employ fair
value procedures to value its holdings in such investments.
PORTFOLIO
HOLDINGS INFORMATION
A
description of the Funds’ policies and procedures with respect to the disclosure
of the Funds’ portfolio securities is available in the Funds’ SAI. Each Fund’s
top ten holdings as of each calendar quarter-end may be made available in the
fact sheets on the Funds’ website at www.scharffunds.com
within five to ten business days after the calendar quarter-end. If made
available, the top ten holdings for the Funds will remain posted on the website
until updated with the next required regulatory filings with the SEC. Currently,
disclosure of the Funds’ holdings is required to be made quarterly within 60
days of the end of each fiscal quarter in the annual report and semi-annual
report to Fund shareholders and in the quarterly holdings report on Part F of
Form N-PORT. The annual and semi-annual reports are available by contacting the
Scharf Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701,
Milwaukee, Wisconsin 53201-0701, or calling 866-5SCHARF and on the SEC’s website
at www.sec.gov.
A complete description of the Funds’ policies and procedures with respect to the
disclosure of the Funds’ portfolio holdings is available in the
SAI.
MANAGEMENT
OF THE FUNDS
Investment
Adviser
Scharf
Investments, LLC is the Funds’ investment adviser and is located at 16450 Los
Gatos Boulevard, Suite 207, Los Gatos, California 95032. The Adviser is employee
controlled and has been registered with the SEC since 1983. The Adviser provides
investment management services to individuals, high net worth individuals,
pension and profit sharing plans, charitable organizations, and
corporations.
The
Adviser is responsible for the day-to-day management of the Funds in accordance
with each Fund’s investment objective and policies. The Adviser also furnishes
the Funds with office space and certain
administrative
services and provides most of the personnel needed to fulfill its obligations
under its advisory agreement. For its services, for the fiscal year ended
September 30, 2022, the Adviser was entitled to receive an annual management
fee, calculated daily and payable monthly, as shown in the able below.
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Fund
Name |
Management
Fee effective through 12/31/2022 |
Management
Fee effective 1/1/23 |
Scharf
Fund |
0.78% |
0.78% |
Multi-Asset
Fund |
0.99% |
0.65% |
Global
Opportunity Fund |
0.99% |
0.70% |
For
the fiscal year ended September 30, 2022, the Adviser received
management fees of 0.70% of the Scharf Fund’s average daily net assets, after
any waivers, and 0.53% of the Multi-Asset Fund’s average daily net assets, after
any waivers. For the fiscal year ended September 30, 2022, the Adviser waived
its entire management fee for the Global Opportunity Fund.
A
discussion regarding the basis of the Board’s approval of the Scharf Fund,
Multi-Asset Fund and Global Opportunity Fund’s investment advisory agreement is
available in the Funds’ semi-annual report to shareholders for the fiscal period
ended March 31, 2022.
Portfolio
Managers
The
Funds are team managed portfolios. The team includes Messrs. Brian A. Krawez,
Gabe Houston and Eric Lynch (Scharf Fund only), who are members of the Adviser’s
investment committee and have been responsible for the day-to-day management of
the Funds’ portfolios along with developing and executing each Fund’s investment
strategy since inception. The Funds’ SAI provides additional information about
the portfolio managers’ compensation, other accounts managed, and ownership of
shares of the Funds.
Brian
A. Krawez, CFA, is the portfolio manager primarily responsible for the
day-to-day management of the Funds. Mr. Krawez is President, Investment
Committee Chairman and Lead Equity Manager of the Adviser.
He
has been with the Adviser since 2007. Mr. Krawez earned both his Bachelor of
Science degree and Master of Business Administration from the University of
California at Berkeley.
Gabe
Houston serves as an Investment Committee member and Senior Research Analyst for
the Adviser. He has been with the Adviser since 2006. Mr. Houston earned a
Bachelor of Arts in business management economics from the University of
California, Santa Cruz.
Eric
Lynch, serves as an Investment Committee member and Managing Director for the
Adviser. He has been with the Adviser since 2007. Mr. Lynch earned a Bachelor of
Arts in economics and a concentration in Japanese and East Asian studies from
John Carroll University. He earned a Master of Business Administration from the
University of North Carolina - Chapel Hill.
The
SAI provides additional information about the portfolio manager’s compensation,
other accounts managed by the portfolio manager and his ownership of securities
in the Funds.
Fund
Expenses
Each
Fund is responsible for its own operating expenses. However, the Adviser has
contractually agreed to waive all or a portion of its management fees and pay
Fund expenses through at least January 27, 2024, to limit Total Annual Fund
Operating Expenses of each Fund (excluding AFFE, interest expense, dividends on
securities sold short, taxes, extraordinary expenses and any other
class-specific
expenses,
such
as a distribution (12b-1) fee or shareholder servicing plan fee) to the amounts
shown below as a percentage of each Fund’s average daily net assets:
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Scharf
Fund |
0.79% |
Multi-Asset
Fund |
0.85% |
Global
Opportunity Fund |
0.52% |
The
term of the Funds’ operating expenses limitation agreement, subject to its
annual approval by the Board, is indefinite, and it can only be terminated by
the Board. The Adviser may request recoupment of previously waived fees and paid
expenses in any subsequent month in the 36-month period from the date of the
management fee reduction and expense payment if the aggregate amount actually
paid by the Fund toward the operating expenses for such fiscal year (taking into
account the reimbursement) will not cause the Fund to exceed the lesser of: (1)
the expense limitation in place at the time of the management fee reduction and
expense payment; or (2) the expense limitation in place at the time of the
reimbursement subject to the Expense Cap at the time such amounts were waived or
at the time of recoupment, whichever is lower. Any such recoupment is contingent
upon the subsequent review and approval of the recouped amounts by the
Board.
Similarly
Managed Account Performance
The
Scharf Fund and Multi-Asset Fund are managed in a manner that is substantially
similar to certain other accounts managed by the Adviser. The “Sustainable Value
Composite” has investment objectives, policies, strategies and risks
substantially similar to those of the Scharf Fund. The “Multi-Asset Composite”
has investment objectives, policies, strategies and risks substantially similar
to those of the Multi-Asset Fund.
Scharf
Investments, LLC is a registered investment adviser and the individual
responsible for the management of the Sustainable Value Composite and
Multi-Asset Composite is the same individual responsible for the management of
each respective Fund. You
should not consider the past performance of the Sustainable Value Composite and
Multi-Asset Composite as indicative of the future performance of the respective
Scharf Fund or Multi-Asset Fund, respectively.
Sustainable
Value Composite
The
following table sets forth performance data relating to the Sustainable Value
Composite which represents all of the accounts managed by the Adviser in a
substantially similar manner to the Scharf Fund. The data is provided to
illustrate the past performance of the Adviser in managing substantially similar
accounts as measured against an appropriate index, and does not represent the
performance of the Scharf Fund. The Sustainable Value Composite is not subject
to the same types of expenses to which the Scharf Fund is subject, the
Sustainable Value Composite is rebalanced differently and less frequently than
the Scharf Fund which will affect, among other things, transaction costs and may
affect the comparability of performance, nor is the Sustainable Value Composite
subject to the diversification requirements, specific tax restrictions and
investment limitations imposed on the Scharf Fund by the 1940 Act or Subchapter
M of the Internal Revenue Code of 1986, as amended. Consequently, the
performance results for the Sustainable Value Composite expressed below could
have been adversely affected if it had been regulated as an investment company
under the federal securities laws.
Scharf
Investments, LLC
Sustainable
Value Composite(1)
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As
of 12/31/2021 (annualized)(2) |
| One
Year |
Three
Years |
Five
Years |
Ten
Years |
Since
12/31/1996(3) |
Sustainable
Value Composite (Gross) |
23.49% |
21.00% |
14.63% |
14.32% |
12.83% |
Sustainable
Value Composite (Net)(4) |
22.35% |
19.90% |
13.60% |
13.20% |
11.54% |
Russell
1000 Value Index |
25.12% |
17.62% |
11.14% |
12.96% |
8.89% |
S&P
500®
Index(5) |
28.68% |
26.05% |
18.46% |
16.54% |
9.75% |
(1)The
Sustainable Value Composite was created on December 13, 2013 and retains the
performance from the Equity Composite prior to 2009. The Equity Composite was
managed by the predecessor firm of Scharf Investments, LLC.
(2)As
of December 31, 2021, the Sustainable Value Composite was comprised of 818
accounts with approximately $1,743 million in assets.
(3)Inception
of the Sustainable Value Composite is January 1, 1991; however, performance is
only shown from December 31, 1996 because performance prior to that date is not
in compliance with the Global Investment Performance Standards
(“GIPS®”).
(4)Performance
shown is net of actual fees paid by clients.
(5)The
S&P 500®
Index is an unmanaged capitalization-weighted index of 500 stocks designed to
represent the broad domestic market. You cannot invest directly in an
index.
The
Sustainable Value Composite includes fully discretionary, non-wrap, asset-based,
fee paying equity accounts. Returns of the Sustainable Value Composite are
presented gross and net of management fees. Performance includes the
reinvestment of dividends and other income and the deduction of trading
commissions and other costs. Because the equity mandate may be described as
diversified, the benchmark shown is the S&P 500®
Index. The S&P 500®
Index contains 500 industrial, transportation, utility, technology and financial
companies regarded as generally representative of the large capitalization U.S.
stock market.
The
fees and expenses associated with an investment in the Sustainable Value
Composite are lower than the fees and expenses (after taking into account the
Expense Cap) associated with an investment in the Scharf Fund, so that if the
Sustainable Value Composite’s expenses were adjusted for these Fund expenses,
its performance would have been slightly lower during the periods
shown.
Scharf
Investments, LLC claims compliance with
Global
Investment Performance Standards (GIPS®).
The
GIPS®
method of calculating performance differs from the SEC’s standardized method of
calculating performance and may produce different results. The U.S. dollar is
the currency used to express performance of the Sustainable Value Composite.
Adviser Compliance Associates, LLC doing business as ACA Compliance Group,
successor by merger to ACA Performance Services, LLC has verified that the
Adviser has been in compliance with GIPS® standards as of December 31, 2019.
To
obtain a compliant presentation and/or the firm’s list of composite
descriptions, please contact Scharf Investments, LLC at
1-831-429-6513.
Multi-Asset
Composite
The
following table sets forth performance data relating to the Multi-Asset
Composite
which represents all of the accounts managed by the Adviser in a substantially
similar manner to the Multi-Asset Fund. The data is provided to illustrate the
past performance of the Adviser in managing substantially similar accounts as
measured against an appropriate index, and does not represent the performance of
the Multi-Asset Fund. The Multi-Asset
Composite
is not subject to the same types of expenses to which the Multi-
Asset
Fund is subject, the Multi-Asset
Composite
is rebalanced differently and less frequently than the Multi-Asset Fund which
will affect, among other things, transaction costs and may affect the
comparability of performance, nor is the Multi-Asset
Composite
subject to the diversification requirements, specific tax restrictions and
investment limitations imposed on the Multi-Asset Fund by the 1940 Act or
Subchapter M of the Internal Revenue Code of 1986, as amended. Consequently, the
performance results for the Multi-Asset
Composite
expressed below could have been adversely affected if it had been regulated as
an investment company under the federal securities laws.
Scharf
Investments, LLC
Multi-Asset
Composite
(1)
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As
of 12/31/2021 (annualized)(2) |
| One
Year |
Three
Years |
Five
Years |
Ten
Years |
Since
12/31/1996(3) |
Multi-Asset
Composite (Gross) |
16.24% |
16.40% |
11.51% |
11.13% |
11.23% |
Multi-Asset
Composite (Net)(4) |
15.41% |
15.51% |
10.67% |
10.24% |
10.04% |
Lipper
Balanced Index/Average(5) |
13.18% |
15.36% |
10.80% |
9.55% |
7.12% |
(1) Prior
to 2009, the Multi-Asset
Composite
was managed by the predecessor firm of Scharf Investments, LLC.
(2) As
of December 31, 2021, the Multi-Asset Composite was comprised of 185 accounts
with approximately $400 million in assets.
(3) Inception
of the Multi-Asset
Composite
is December 31, 1988; however, performance is only shown from December 31, 1996,
because performance prior to that date is not in compliance with the Global
Investment Performance Standards (“GIPS®”).
(4) Performance
shown is net of actual fees paid by clients.
(5) The
Multi-Asset Composite is measured against the Lipper Balanced Mutual Fund
Average for the years 1997-2004. After 2004, data for the Lipper Balanced Mutual
Fund Average was not readily available, thus the Lipper Balanced Fund Index is
used from 2005 forward. The Lipper Balanced Fund Index is an index of open-end
mutual funds whose primary objective is to conserve principal by maintaining at
all times a balanced portfolio of both equities and bonds. You cannot invest
directly in an index.
The
Multi-Asset Composite includes fully discretionary fee paying balanced accounts.
Returns of the Multi-Asset Composite are presented gross and net of management
fees. Performance includes the reinvestment of dividends and other income and
the deduction of trading commissions and other costs. The benchmark shown is the
Lipper Balanced Mutual Fund Average for the years 1997 to 2004. After 2004, data
for the Lipper Balanced Mutual Fund Average was not readily available, thus the
Lipper Balanced Fund Index is used from 2005 forward. The Lipper Balanced Fund
Index is an index of open-end mutual funds whose primary objective is to
conserve principal by maintaining at all times a balanced portfolio of both
equities and bonds.
The
fees and expenses associated with an investment in the Multi-Asset Composite are
lower than the fees and expenses (after taking into account the Expense Cap)
associated with an investment in the Multi-Asset Fund, so that if the
Multi-Asset Composite’s expenses were adjusted for the Fund’s expenses, its
performance would have been slightly lower during the periods
shown.
Scharf
Investments, LLC claims compliance with Global Investment Performance Standards
(“GIPS®”). The GIPS® method of calculating performance differs from the SEC’s
standardized method of calculating performance and may produce different
results. The U.S. dollar is the currency used to express performance of the
Multi-Asset Composite. Adviser Compliance Associates, LLC doing business as ACA
Compliance Group, successor by merger to ACA Performance Services, LLC has
verified that the Adviser has been in compliance with GIPS® standards as of
December 31, 2019.
To
obtain a compliant presentation and/or the firm’s list of composite
descriptions, please contact Scharf Investments, LLC at
1-831-429-6513.
SHAREHOLDER
INFORMATION
Pricing
of Fund Shares
Shares
of the Funds are sold at NAV per share, which is calculated as of the close of
regular trading (generally, 4:00 p.m., Eastern Time) on each day that the
New York Stock Exchange (“NYSE”) is open for unrestricted business. However,
each Fund’s NAV may be calculated earlier if trading on the NYSE is restricted
or as permitted by the SEC. The NYSE is closed on weekends and most national
holidays, including New Year’s Day, Martin Luther King, Jr. Day, Washington’s
Birthday/Presidents’ Day, Good Friday, Memorial Day, Juneteenth National
Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day. The NAV will not be calculated on days when the NYSE is closed for
trading.
Purchase
and redemption requests are priced based on the next NAV per share calculated
after receipt of such requests. The NAV is the value of a Fund’s securities,
cash and other assets, minus all expenses and liabilities (assets – liabilities
= NAV). NAV per share is determined by dividing NAV by the number of shares
outstanding (NAV/ # of shares = NAV per share). The NAV takes into account the
expenses and fees of a Fund, including management and administration fees, which
are accrued daily.
In
calculating the NAV, portfolio securities are valued using current market values
or official closing prices, if available. Each security owned by a Fund that is
listed on a securities exchange, including ADRs, EDRs, and GDRs, is valued at
its last sale price on that exchange on the date as of which assets are valued.
Where the security is listed on more than one exchange, the Funds will use the
price of the exchange that the Funds generally consider to be the principal
exchange on which the security is traded.
The
Board has designated the Adviser as its “valuation designee” under Rule 2a-5 of
the 1940 Act, subject to its oversight.
When
market quotations are not readily available, a security or other asset is valued
at its fair value as determined under procedures adopted by the Adviser. These
fair value procedures will also be used to price a security when corporate
events, events in the securities market and/or world events cause the Adviser to
believe that a security’s last sale price may not reflect its actual market
value. The intended effect of using fair value pricing procedures is to ensure
that the Funds are accurately priced. The Board will regularly evaluate whether
the Adviser’s fair valuation pricing procedures continue to be appropriate in
light of the specific circumstances of the Funds and the quality of prices
obtained through their application by the valuation designee.
Trading
in Foreign Securities
In
the case of foreign securities, the occurrence of certain events after the close
of foreign markets, but prior to the time a Fund’s NAV per share is calculated
(such as a significant surge or decline in the U.S. or other markets) often will
result in an adjustment to the trading prices of foreign securities when foreign
markets open on the following business day. If such events occur, a Fund will
value foreign securities at fair value, taking into account such events, in
calculating the NAV per share. In such cases, use of fair valuation can reduce
an investor’s ability to seek to profit by estimating a Fund’s NAV per share in
advance of the time the NAV per share is calculated. The Adviser anticipates
that a Fund’s portfolio holdings will be fair valued when market quotations for
those holdings are considered unreliable.
Description
of Classes
This
Prospectus offers Institutional Class and Retail Class of the Scharf Fund,
Institutional Class and Retail Class of the Multi-Asset Fund, Institutional
Class of the Global Opportunity Fund. The different classes of shares represent
investments in the same portfolio of securities, but the classes are subject to
different expenses and may have different share prices as outlined below:
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| Retail
Class |
Institutional
Class |
Minimum
Initial Investment |
$10,000
– Standard Accounts $5,000 – Retirement Accounts $5,000 – Automatic
Investment Plans |
Scharf
Fund – $1,000,000 Multi-Asset Fund – $5,000,000 Global Opportunity Fund
– $10,000 |
Subsequent
Minimum Investment |
$500
– Standard Accounts $500 – Retirement Accounts $100 – Automatic
Investment Plans |
Any
Amount |
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| Retail
Class |
Institutional
Class |
Waiver/Reduction
of Investment Minimums |
None |
The
Funds’ minimum investment requirements may be waived from time to time by
the Adviser, and for the following types of shareholders:
•current
and retired employees, directors/trustees and officers of the Board, the
Adviser and its affiliates and certain family members of each of them
(i.e.,
spouse, domestic partner, child, parent, sibling, grandchild and
grandparent, in each case including in-law, step and adoptive
relationships);
•any
trust, pension, profit sharing or other benefit plan for current and
retired employees, directors/trustees and officers of the Adviser and its
affiliates;
•current
employees of U.S. Bank Global Fund Services (the Funds’ “Transfer Agent”),
broker-dealers who act as selling agents for the Funds, intermediaries
that have marketing agreements in place with the Adviser and the immediate
family members of any of them;
•existing
clients of the Adviser, their employees and immediate family members of
such employees;
•registered
investment advisers who buy through a broker-dealer or service agent who
has entered into an agreement with Quasar Distributors, LLC (the Funds’
“Distributor”); and
•qualified
broker-dealers who have entered into an agreement with the
Distributor. |
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| Retail
Class |
Institutional
Class |
Fees |
•Redemption
Fee of 2.00% if shares are redeemed less than 60 days from purchase
(with some exceptions)
•12b-1
fee of 0.25%
•Shareholder
servicing fee of up to 0.10% |
•Redemption
Fee of 2.00% if shares are redeemed less than 60 days from purchase
(with some exceptions)
•Shareholder
servicing fee of up to 0.10% |
Conversion
Feature |
Subject
to meeting the minimum investment amount for Institutional Class shares,
investors currently holding Retail Class shares may convert to
Institutional Class shares, without incurring redemption
fees. A conversion from Retail Class shares of a Fund to
Institutional Class shares of the same Fund is not expected to result in
realization of a capital gain or loss for federal income tax purposes.
Call the Funds (toll-free) at 866-5SCHARF to learn more about conversions
of Fund shares. |
Subject
to meeting the minimum investment amount for Institutional Class shares,
investors currently holding Retail Class shares may convert to
Institutional Class shares, without incurring redemption
fees. A conversion from Retail Class shares of a Fund to
Institutional Class shares of the same Fund is not expected to result in
realization of a capital gain or loss for federal income tax purposes.
Call the Funds (toll-free) at 866-5SCHARF to learn more about conversions
of Fund shares. |
Eligible
Investors |
Includes:
•Individual
accounts,
•Retirement
accounts, and
•Certain
accounts maintained through financial intermediaries.
|
Designed
for accounts of institutions maintained directly with the Fund’s transfer
agent, including:
•Financial
institutions,
•Pension
plans,
•Retirement
accounts,
•Qualified
plans,
•Corporations,
trusts, estates, religious and charitable organizations, and
•Financial
intermediaries that charge their customers transaction or other
distribution or service fees with respect to their customers’ investments
in the Fund. |
How
to Purchase Shares
You
may purchase shares of the Funds by check, by wire transfer, via electronic
funds transfer through the Automated Clearing House (“ACH”) network by
telephone, through the Automatic Investment Plan (“AIP”), or through a bank or
through one or more brokers authorized by the Funds to receive purchase orders.
Please use the appropriate account application when purchasing by mail or wire.
If you have any questions or need further information about how to purchase
shares of the Funds, you may call a customer service representative of the Funds
toll-free at 866-5SCHARF. The Funds reserve the right to reject any purchase
order. For example, a purchase order may be refused if, in the Adviser’s
opinion, it is so large that it would disrupt the management of the Funds.
Orders may also be rejected from persons believed by the Funds to be “market
timers.”
All
purchase checks must be in U.S. dollars drawn on a domestic institution. The
Funds will not accept payment in cash or money orders. To prevent check fraud,
the Funds will not accept third party checks, Treasury checks, credit card
checks, traveler’s checks or starter checks for the purchase of shares. The
Funds are unable to accept post-dated checks or any conditional order or
payment.
To
buy shares of the Funds, complete an account application and send it together
with your check for the amount you wish to invest in the Funds to the address
below. To make additional investments once you have opened your account, write
your account number on the check and send it together with the Invest by Mail
form from your most recent confirmation statement received from the Funds’
Transfer Agent. All subsequent purchase requests must include the Fund name and
your shareholder account number. If you do not have the Invest by Mail form,
include your name, address, Fund name and account number on a separate piece of
paper. If your payment is returned for any reason, your purchase will be
canceled and a $25 fee will be assessed against your account by the Transfer
Agent. You may also be responsible for any loss sustained by the
Funds.
In
addition to cash purchases, Fund shares may be purchased by tendering payment
in-kind in the form of shares of stock, bonds or other securities. Any
securities used to buy Fund shares must be readily marketable, their acquisition
consistent with the Fund’s objective and otherwise acceptable to the Adviser and
the Board. For further information, you may call a customer service
representative of the Funds toll-free at 866-5SCHARF.
In
compliance with the USA PATRIOT Act of 2001, please note that the Transfer Agent
will verify certain information on your account application as part of the
Board’s Anti-Money Laundering Program. As requested on the account application,
you must provide your full name, date of birth, social security number and
permanent street address. If you are opening the account in the name of a legal
entity (e.g.,
partnership, limited liability company, business trust, corporation, etc.), you
must also supply the identity of the beneficial owners. Mailing addresses
containing only a P.O. Box will not be accepted. Please contact the Transfer
Agent at 866-5SCHARF if you need additional assistance when completing your
account application.
If
the Transfer Agent does not have a reasonable belief of the identity of a
shareholder, the account will be rejected or you will not be allowed to perform
a transaction on the account until such information is received. In the rare
event that the Transfer Agent is unable to verify your identity, the Fund
reserves the right to redeem your account at the current day’s net asset value.
Shares
of the Funds have not been registered for sale outside of the United States. The
Funds generally do not sell shares to investors residing outside of the United
States, even if they are United States citizens or lawful permanent residents,
except to investors with United States military APO or FPO
addresses.
Purchasing
Shares by Mail
Please
complete the account application and mail it with your check, payable to
Scharf
Funds,
to the Transfer Agent at the following address:
|
|
|
|
| |
Regular
Mail |
Overnight
Delivery |
Scharf
Funds |
Scharf
Funds |
[Name
of Fund] |
[Name
of Fund] |
c/o
U.S. Bank Global Fund Services |
c/o
U.S. Bank Global Fund Services |
P.O.
Box 701 |
615
East Michigan Street, Third Floor |
Milwaukee,
Wisconsin 53201-0701 |
Milwaukee,
Wisconsin 53202 |
NOTE: The
Funds do not consider the U.S. Postal Service or other independent delivery
services to be its agents. Therefore, a deposit in the mail or with such
services, or receipt at U.S. Bank Global Fund Services’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
Transfer Agent. Receipt of purchase orders or redemption requests is based on
when the order is received at the Transfer Agent’s offices.
Purchasing
Shares by Telephone
If
you have accepted telephone options on your account application and if your
account has been open for at least seven business days, you may purchase
additional Fund shares by calling the Funds toll-free at 866-5SCHARF. You may
not make your initial purchase of Fund shares by telephone. Telephone orders
will be accepted via electronic funds transfer from your pre-designated bank
account through the ACH network. You must have banking information established
on your account prior to making a telephone purchase. Only bank accounts held at
domestic institutions that are ACH members may be used for telephone
transactions. If your order is received prior to 4:00 p.m., Eastern Time, shares
will be purchased at the appropriate share price next calculated. For security
reasons, requests by telephone may be recorded. Once a telephone transaction has
been placed, it cannot be cancelled or modified after the close of regular
trading on the NYSE (generally 4:00 p.m. Eastern Time).
Purchasing
Shares by Wire
If
you are making your initial investment in the Funds, the Transfer Agent must
have previously received a completed account application before you can send in
your wire purchase. You can mail or deliver overnight your account application
to the Transfer Agent at the above address. Upon receipt of your completed
account application, the Transfer Agent will establish an account on your
behalf. Once your account is established, you may instruct your bank to send the
wire. Your bank must include the name of the Fund, your name and your account
number so that monies can be correctly applied. Your bank should transmit
immediately available funds by wire to:
U.S.
Bank National Association
777
East Wisconsin Avenue
Milwaukee,
Wisconsin 53202
ABA
No.: 075000022
Credit:
U.S. Bancorp Fund Services, LLC
Account
No.: 112-952-137
Further
Credit: [Name of Fund]
Shareholder
Registration
Shareholder
Account Number
If
you are making a subsequent purchase, your bank should wire funds as indicated
above. Before each wire purchase, you should be sure to notify the Transfer
Agent. It
is essential that your bank include complete information about your account in
all wire transactions.
If you have questions about how to
invest
by wire, you may call the Transfer Agent at 866-5SCHARF. Your bank may charge
you a fee for sending a wire payment to the Funds.
Wired
funds must be received prior to 4:00 p.m., Eastern Time to be eligible for same
day pricing. Neither the Funds nor U.S. Bank N.A. are responsible for the
consequences of delays resulting from the banking or Federal Reserve wire system
or from incomplete wiring instructions.
Automatic
Investment Plan
You
may open your Retail Class account with a reduced minimum initial investment of
$5,000 if you also make additional purchases of Fund shares at regular intervals
through the AIP. Otherwise, once your account has been opened with the initial
minimum investment of $10,000, you may make additional purchases of Fund shares
at regular intervals through the AIP. The AIP provides a convenient method to
have monies deducted from your bank account, for investment into a Fund, on a
monthly or quarterly basis. In order to participate in the AIP, each purchase
must be in the amount of $100 or more, and your financial institution must be a
member of the ACH network. If your bank rejects your payment, the Transfer Agent
will charge a $25 fee to your account. To begin participating in the AIP, please
complete the “Automatic Investment Plan” section on the account application or
call the Transfer Agent at 866-5SCHARF for additional information. Any request
to change or terminate your AIP should be submitted to the Transfer Agent at
least five calendar days prior to the automatic investment date.
Retirement
Accounts
The
Funds offer prototype documents for a variety of retirement accounts for
individuals and small businesses. Please call 866-5SCHARF for information
on:
•Individual
Retirement Plans, including Traditional IRAs and Roth IRAs.
•Small
Business Retirement Plans, including Simple IRAs and SEP IRAs.
There
may be special distribution requirements for a retirement account, such as
required distributions or mandatory Federal income tax withholding. For more
information, call the number listed above. You may be charged a $15 annual
account maintenance fee for each retirement account up to a maximum of $30
annually (per social security number) and a $25 fee for transferring assets to
another custodian or for closing a retirement account. Fees charged by
institutions may vary.
Purchasing
and Selling Shares through a Broker
You
may buy and sell shares of the Funds through certain brokers and financial
intermediaries (and their agents) (collectively, “Brokers”) that have made
arrangements with the Funds to sell their shares. When you place your order with
such a Broker, your order is treated as if you had placed it directly with the
Transfer Agent, and you will pay or receive the next applicable price calculated
by the Funds. Brokers may be authorized by the Funds’ principal underwriter to
designate other brokers and financial intermediaries to accept orders on a
Fund’s behalf. An order is deemed to be received when a Fund, a Broker’s or, if
applicable, a Broker’s authorized designee accepts the order. The Broker holds
your shares in an omnibus account in the Broker’s name, and the Broker maintains
your individual ownership records. The Adviser may pay the Broker for
maintaining these records as well as providing other shareholder services. The
Broker may charge you a fee for handling your order. The Broker is responsible
for processing your order correctly and promptly, keeping you advised regarding
the status of your individual account, confirming your transactions and ensuring
that you receive copies of the Funds’ Prospectus.
Conversion
Feature
Subject
to meeting the minimum investment amount for Institutional Class shares,
investors currently holding Retail Class shares may convert to Institutional
Class shares, without incurring redemption fees. A conversion from
Retail Class shares of a Fund to Institutional Class shares of the same Fund is
not expected to result in realization of a capital gain or loss for federal
income tax purposes. Call the Funds (toll-free) at 866-5SCHARF to learn more
about conversions of Fund shares.
How
to Redeem Shares
You
may sell (redeem) your Fund shares on any day the Funds and the NYSE are open
for business either directly to a Fund or through your financial
intermediary.
As
described below, you may receive proceeds of your sale in a check, ACH, or
federal wire transfer. The Funds typically expect that it will take one to three
days following the receipt of your redemption request to pay out redemption
proceeds; however, while not expected, payment of redemption proceeds may take
up to seven days.
The Funds may delay paying redemption proceeds for up to seven calendar days
after receiving a request, if an earlier payment could adversely affect the
Funds. If
you did not purchase your shares with a wire payment, the Funds may delay
payment of your redemption proceeds for up to 15 calendar days from purchase or
until your purchase amount has cleared, whichever occurs first.
The
Funds typically expect that a Fund will hold cash or cash equivalents to meet
redemption requests. The Funds may also use the proceeds from the sale of
portfolio securities to meet redemption requests if consistent with the
management of the Fund. These redemption methods will be used regularly and may
also be used in stressed market conditions.
The
Funds reserve the right to redeem in-kind as described under “Redemption
“In-Kind” below. Redemptions in-kind are typically used to meet redemption
requests that represent a large percentage of a Fund’s net assets in order to
minimize the effect of large redemptions on the Fund and its remaining
shareholders. Redemptions in-kind are typically only used in unusual market
conditions. The Scharf Fund, Multi-Asset Fund and Global Fund also have in place
a line of credit that may be used to meet redemption requests during unusual
market conditions.
By
Mail
You
may redeem your shares by simply sending a written request to the Transfer
Agent. You should provide your account number and state whether you want all or
some of your shares redeemed. The letter should be signed by all of the
shareholders whose names appear on the account registration and include a
signature guarantee(s), if necessary. Payment of your redemption proceeds will
be made promptly after the receipt of your written request in good order. No
redemption requests will become effective until all documents have been received
in good order by the Transfer Agent. “Good order” means your redemption request
includes: (1) the name of the Fund, (2) the number of shares or dollar amount to
be redeemed, (3) the account number and (4) signatures by all of the
shareholders whose names appear on the account registration with a signature
guarantee, if applicable. Payment of your redemption proceeds will be made
promptly, but not later than seven days after the receipt of your written
request in good order. Shareholders who have an IRA or other retirement plan
must indicate on their redemption request whether to withhold federal income
tax. Redemption requests failing to indicate an election not to have tax
withheld will generally be subject to 10% withholding. You should send your
redemption request to:
|
|
|
|
| |
Regular
Mail |
Overnight
Delivery |
Scharf
Funds |
Scharf
Funds |
[Name
of Fund] |
[Name
of Fund] |
c/o
U.S. Bank Global Fund Services |
c/o
U.S. Bank Global Fund Services |
P.O.
Box 701 |
615
East Michigan Street, 3rd
Floor |
Milwaukee,
Wisconsin 53201-0701 |
Milwaukee,
Wisconsin 53202 |
NOTE: The
Funds do not consider the U.S. Postal Service or other independent delivery
services to be its agents. Therefore, a deposit in the mail or with such
services, or receipt at U.S. Bank Global Fund Services’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
Transfer Agent. Receipt of purchase orders or redemption requests is based on
when the order is received at the Transfer Agent’s offices.
By
Telephone
If
you accepted telephone options on your account application, you may redeem all
or some of your shares, up to $100,000, by calling the Transfer Agent at
866-5SCHARF before the close of trading on the NYSE (which is generally
4:00 p.m., Eastern Time). Redemption proceeds will be processed on the next
business day and sent to the address that appears on the Transfer Agent’s
records or via ACH to a previously established bank account. If you request,
redemption proceeds will be wired on the next business day to the bank account
you designated on the account application. The minimum amount that may be wired
is $1,000. A wire fee of $15 will be deducted from your redemption proceeds for
complete and share certain redemptions. In the case of a partial redemption, the
fee will be deducted from the remaining account balance. Telephone redemptions
cannot be made if you notified the Transfer Agent of a change of address within
15 calendar days before the redemption request. If you have a retirement
account, you may not redeem your shares by telephone.
Prior
to executing an instruction received by telephone, the Funds and the Transfer
Agent will use reasonable procedures to confirm that the telephone instructions
are genuine. These procedures may include recording the telephone call and
asking the caller for a form of personal identification. If the Funds and the
Transfer Agent follow these procedures, they will not be liable for any loss,
expense, or cost arising out of any telephone request that is reasonably
believed to be genuine. This includes any fraudulent or unauthorized 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. The Funds may
change, modify or terminate these telephone privileges at any time upon at least
a 60-day notice to shareholders. You may request telephone redemption privileges
after your account is opened by calling the Transfer Agent at 866-5SCHARF for
instructions.
You
may encounter higher than usual call wait times during periods of high market
activity. Please allow sufficient time to ensure that you will be able to
complete your telephone transaction prior to market close. If you are unable to
contact the Funds by telephone, you may mail your redemption request in writing
to the address noted above. Once a telephone transaction has been accepted, it
may not be canceled or modified after the close of regular trading on the NYSE
(generally, 4:00 p.m., Eastern Time).
Exchange
Privilege
As
a shareholder, you have the privilege of exchanging shares of one Scharf Fund
for shares of the other Scharf Funds. However, you should note the following:
•Exchanges
may only be made between like share classes;
•You
may only exchange between accounts that are registered in the same name,
address, and taxpayer identification number;
•Before
exchanging into the other Scharf Funds, read the Fund’s description in this
prospectus;
•Exchanges
between Funds are considered a sale and purchase of Fund shares for tax purposes
and may be taxed as short-term or long-term capital gain or loss depending on
the period shares are held, subject to certain limitations on deductibility of
losses;
•The
Funds reserve the right to refuse exchange purchases by any person or group if,
in the Adviser’s judgment, the Fund would be unable to invest the money
effectively in accordance with its investment objective and policies, or would
otherwise potentially be adversely affected;
•The
minimum exchange amount between the Funds is $10,000 for regular accounts and
$5,000 for retirement accounts;
•Redemption
fees will not be assessed when an exchange occurs between the Funds;
and
•If
you accepted telephone options on your account application, you may make a
telephone request to exchange your shares for an additional $5.00 fee.
You
may make exchanges of your shares between the Funds by telephone, in writing or
through your Broker. Note that only four exchanges are permitted per calendar
year.
Systematic
Withdrawal Plan
As
another convenience, you may redeem a Fund’s shares through the Systematic
Withdrawal Plan (“SWP”). Under the SWP, shareholders or their financial
intermediaries may request that a payment drawn in a predetermined amount be
sent to them on a monthly, quarterly or annual basis. In order to participate in
the SWP, your account balance must be at least $100,000 and each withdrawal
amount must be for a minimum of $3,000. If you elect this method of redemption,
the Funds will send a check directly to your address of record or will send the
payment directly to your bank account via electronic funds transfer through the
ACH network. For payment through the ACH network, your bank must be an ACH
member and your bank account information must be previously established on your
account. The SWP may be terminated at any time by the Funds. You may also elect
to terminate your participation in the SWP by communicating in writing or by
telephone to the Transfer Agent no later than five calendar days before the next
scheduled withdrawal at:
|
|
|
|
| |
Regular
Mail |
Overnight
Delivery |
Scharf
Funds |
Scharf
Funds |
[Name
of Fund] |
[Name
of Fund] |
c/o
U.S. Bank Global Fund Services |
c/o
U.S. Bank Global Fund Services |
P.O.
Box 701 |
615
East Michigan Street, 3rd
Floor |
Milwaukee,
Wisconsin 53201-0701 |
Milwaukee,
Wisconsin 53202 |
A
withdrawal under the SWP involves a redemption of shares and may result in a
gain or loss for federal income tax purposes. In addition, if the amount
withdrawn exceeds the dividends credited to your account, the account will
ultimately be depleted. To establish a SWP, an investor must complete the
appropriate sections of the account application. For additional information on
the SWP, please call the Transfer Agent at 866-5SCHARF.
Redemption
“In-Kind”
The
Funds reserve the right to pay redemption proceeds to you in whole or in part by
a distribution of securities from a Fund’s portfolio (a “redemption in-kind”). A
redemption, whether in cash or in-kind, is a taxable event for you. It is not
expected that the Funds would do so except during unusual market conditions. If
the Funds pay your redemption proceeds by a distribution of securities, you
could incur brokerage or other charges in converting the securities to cash and
will bear any market risks associated with such securities until they are
converted into cash.
Signature
Guarantees
Signature
guarantees will generally be accepted from domestic banks, brokers, dealers,
credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations, as well as from
participants in the New York Stock Exchange Medallion Signature Program and the
Securities Transfer Agents Medallion Program. A
notary public is not an acceptable signature guarantor.
A
signature guarantee, from either a Medallion program member or non-Medallion
program member, is required in the following situations:
•When
ownership is being changed on your account;
•When
redemption proceeds are payable or sent to any person, address or bank account
not on record;
•When
a redemption is received by the Transfer Agent and the account address has
changed within the last 15 calendar days; and/or
•For
all redemptions in excess of $100,000 from any shareholder account.
Non-financial
transactions, including establishing or modifying certain services on an
account, may require a signature guarantee, signature verification from a
Signature Validation Program member or other acceptable form of authentication
from a financial institution source.
In
addition to the situations described above, the Funds and/or the Transfer Agent
may require a signature guarantee or signature validation program stamp in other
instances.
Other
Information about Redemptions
The
Funds may redeem the shares in your account if the value of your account is less
than $10,000 as a result of redemptions you have made. This does not apply to
retirement plan accounts, Uniform Gifts or Transfers to Minors Act accounts, or
accounts with an active AIP. You will be notified that the value of your account
is less than $10,000 before the Fund makes an involuntary redemption. You will
then have 30 days in which to make an additional investment to bring the
value of your account to at least $10,000 before the Funds take any action. The
Funds will not require you to redeem your shares if the value of your account
drops below the investment minimum due to fluctuations in NAV.
DIVIDENDS
AND DISTRIBUTIONS
The
Funds will make distributions of dividends and capital gains, if any, at least
annually, typically in December. A Fund may make an additional payment of
dividends or distributions of capital gains if it deems it desirable at any
other time of the year.
All
distributions will be reinvested in shares of the distributing Fund unless you
choose one of the following options: (1) receive dividends in cash while
reinvesting capital gain distributions in additional Fund shares;
(2) reinvest dividends in additional Fund shares and receive capital gains
in cash; or (3) receive all distributions in cash. Dividends will be
taxable whether received in cash or in additional shares.
If
you elect to receive distributions in cash and the U.S. Postal Service cannot
deliver the check, or if a check remains outstanding for six months, a Fund
reserves the right to reinvest the distribution check in your account, at a
Fund’s current NAV per share, and to reinvest all subsequent distributions. If
you wish to change your distribution option, notify the Transfer Agent in
writing or by telephone at least five days in advance of the payment date for
the distribution.
Any
dividend or capital gain distribution paid by a Fund has the effect of reducing
the NAV per share on the ex-dividend date by the amount of the dividend or
capital gain distribution. You should note that a dividend or capital gain
distribution paid on shares purchased shortly before that dividend or capital
gain distribution was declared will be subject to income taxes even though the
dividend or capital gain distribution represents, in an economic sense, a
partial return of capital to you.
TOOLS
TO COMBAT FREQUENT TRANSACTIONS
The
Board has adopted policies and procedures to prevent frequent transactions in
the Funds. The Funds discourage excessive, short-term trading and other abusive
trading practices that may disrupt portfolio management strategies and harm the
Funds’ performance. The Funds may decide to restrict purchase and sale activity
in their shares based on various factors, including whether frequent purchase
and sale activity will disrupt portfolio management strategies and adversely
affect a Fund’s performance or whether the shareholder has conducted four round
trip transactions within a 12-month period. The Funds takes steps to reduce the
frequency and effect of these activities in the Funds. These steps include
imposing a redemption fee, monitoring trading practices and using fair value
pricing. Although these efforts (which are described in more detail below) are
designed to discourage abusive trading practices, these tools cannot eliminate
the possibility that such activity may occur. Further, while the Funds make
efforts to identify and restrict frequent trading, the Funds receive purchase
and sale orders through financial intermediaries and cannot always know or
detect frequent trading that may be facilitated by the use of intermediaries or
the use of group or omnibus accounts by those intermediaries. The Funds seek to
exercise their judgment in implementing these tools to the best of their
abilities in a manner that the Funds believe is consistent with shareholder
interests.
Redemption
Fees. The
Scharf Fund charges a 2.00% redemption fee on the redemption of Fund shares held
for 60 days or less. The Multi-Asset Fund and Global Opportunity Fund
charge a 2.00% redemption fee on the redemption of Fund shares held for 15 days
or less. This fee (which is paid into the Funds) is imposed in order to help
offset the transaction costs and administrative expenses associated with the
activities of short-term “market timers” that engage in the frequent purchase
and sale of Fund shares. The “first in, first out” (“FIFO”) method is used to
determine the holding period; this means that if you bought shares on different
days, the shares purchased first will be redeemed first for the purpose of
determining whether the redemption fee applies. The redemption fee is deducted
from your proceeds and is retained by the Fund for the benefit of its long-term
shareholders. Redemption fees will not apply to shares acquired through the
reinvestment of dividends. Although the Funds have the goal of applying the
redemption fee to most redemptions, the redemption fee may not be assessed in
certain circumstances where it is not currently practicable for the Funds to
impose the fee, such as redemptions of shares held in certain omnibus accounts
or retirement plans.
The
Funds’ redemption fee will not apply to broker wrap-fee program accounts.
Additionally, the Funds’ redemption fee will not apply to the following types of
transactions:
•premature
distributions from retirement accounts due to the disability or health of the
shareholder;
•minimum
required distributions from retirement accounts;
•redemptions
resulting in the settlement of an estate due to the death of the shareholder;
•shares
acquired through reinvestment of distributions (dividends and capital gains);
and
•redemptions
initiated through the systematic withdrawal plan.
Monitoring
Trading Practices.
The
Funds monitor selected trades in an effort to detect excessive short-term
trading activities. If, as a result of this monitoring, a Fund believes that a
shareholder has engaged in excessive short-term trading, it may, in its
discretion, ask the shareholder to stop such activities or refuse to process
purchases in the shareholder’s accounts. In making such judgments, the Funds
seek to act in a manner that the Funds believe is consistent with the best
interests of shareholders. Due to the complexity and subjectivity involved in
identifying abusive trading activity and the volume of shareholder transactions
the Funds handle, there can be no assurance that the Funds’ efforts will
identify all trades or trading practices that may be considered abusive. In
addition, the Funds’ ability to monitor trades that are
placed
by individual shareholders within group or omnibus accounts maintained by
financial intermediaries is limited because the Funds do not have simultaneous
access to the underlying shareholder account information.
In
compliance with Rule 22c-2 of the 1940 Act, Quasar Distributors, LLC (the
“Distributor”), on behalf of the Funds, has entered into written agreements with
each of the Fund’s financial intermediaries, under which the intermediary must,
upon request, provide the Funds with certain shareholder and identity trading
information so that the Funds can enforce their market timing
policies.
Fair
Value Pricing.
The
Funds employ fair value pricing selectively to ensure greater accuracy in its
daily NAV and to prevent dilution by frequent traders or market timers who seek
to take advantage of temporary market anomalies. The Board has developed
procedures which utilize fair value pricing when reliable market quotations are
not readily available or the Funds’ pricing service does not provide a valuation
(or provides a valuation that in the judgment of the Adviser to the Funds does
not represent the security’s fair value), or when, in the judgment of the
Adviser, events have rendered the market value unreliable. Valuing securities at
fair value involves reliance on judgment. Fair value determinations are made in
good faith in accordance with procedures adopted by the Board and are reviewed
annually by the Board. There can be no assurance that a Fund will obtain the
fair value assigned to a security if it were to sell the security at
approximately the time at which a Fund determines its NAV per
share.
Fair
value pricing may be applied to non-U.S. securities. The trading hours for most
non-U.S. securities end prior to the close of the NYSE, the time that each
Fund’s NAV is calculated. The occurrence of certain events after the close of
non-U.S. markets, but prior to the close of the NYSE (such as a significant
surge or decline in the U.S. market) often will result in an adjustment to the
trading prices of non-U.S. securities when non-U.S. markets open on the
following business day. If such events occur, each Fund may value non-U.S.
securities at fair value, taking into account such events, when it calculates
its NAV. Other types of securities that each Fund may hold for which fair value
pricing might be required include, but are not limited to: (a) investments
which are frequently traded and/or the market price of which the Adviser
believes may be stale; (b) illiquid securities, including “restricted”
securities and private placements for which there is no public market;
(c) securities of an issuer that has entered into a restructuring;
(d) securities whose trading has been halted or suspended; and
(e) fixed-income securities that have gone into default and for which there
is not a current market value quotation.
More
detailed information regarding fair value pricing can be found under the heading
titled, “Pricing of Fund Shares.”
GENERAL
POLICIES
Some
of the following policies are mentioned above. In general, the Funds reserve the
right to:
•Refuse,
change, discontinue, or temporarily suspend account services, including
purchase, or telephone redemption privileges, for any reason;
•Reject
any purchase request for any reason. Generally, the Funds do this if the
purchase is disruptive to the efficient management of the Funds (due to the
timing of the investment or an investor’s history of excessive trading);
and
•Reject
any purchase or redemption request that does not contain all required
documentation.
Your
financial intermediary may establish policies that differ from those of the
Funds. For example, the organization may charge transaction fees, set higher
minimum investments, or impose certain limitations on buying or selling shares
in addition to those identified in this Prospectus. Contact your financial
intermediary for details.
Lost
Shareholders, Inactive Accounts and Unclaimed Property
It
is important that the Funds maintain a correct address for each shareholder.
An incorrect address may cause a shareholder’s account statements and
other mailings to be returned to a Fund. Based upon statutory requirements
for returned mail, a Fund will attempt to locate the shareholder or rightful
owner of the account. If a Fund is unable to locate the shareholder, then
it will determine whether the shareholder’s account can legally be considered
abandoned. Your mutual fund account may be transferred to the state
government of your state of residence if no activity occurs within your account
during the “inactivity period” specified in your state’s abandoned property
laws. The Funds are legally obligated to escheat (or transfer) abandoned
property to the appropriate state’s unclaimed property administrator in
accordance with statutory requirements. The shareholder’s last known
address of record determines which state has jurisdiction. Please
proactively contact the Transfer Agent toll-free at 866-5SCHARF at least
annually to ensure your account remains in active status.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer
Agent if you wish to complete a Texas Designation of Representative
form.
Fund
Mailings
Statements
and reports that the Funds send to you include the following:
•Confirmation
statements (after every transaction that affects your account balance or your
account registration);
•Annual
and semi-annual shareholder reports (every six months); and
•Quarterly
account statements.
Householding
In
an effort to decrease costs, the Fund intends to reduce the number of duplicate
prospectuses, supplements, and certain other shareholder documents, you receive
by sending only one copy of each to those addresses shared by two or more
accounts and to shareholders the Transfer Agent reasonably believes are from the
same family or household. Once implemented, if you would like to discontinue
householding for your accounts, please call toll-free at 866-5SCHARF to request
individual copies of documents; if your shares are held through a financial
intermediary, please contact them directly. Once the Transfer Agent receives
notice to stop householding, the Transfer Agent will begin sending individual
copies thirty days after receiving your request. This policy does not apply to
account statements.
TAX
CONSEQUENCES
Each
Fund has elected and intends to continue to qualify to be taxed as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as
amended. As a regulated investment company, a Fund will not be subject to
federal income tax if it distributes its income as required by the tax law and
satisfies certain other requirements that are described in the SAI.
For
taxable years beginning after 2017 and before 2025, non-corporate taxpayers
generally may deduct 20% of “qualified business income” derived either directly
or through partnerships or S corporations. For this purpose, “qualified business
income” generally includes dividends paid by a real estate investment trust
(“REIT”) and certain income from publicly traded partnerships. Regulations
recently adopted by the United States Treasury allow non-corporate shareholders
of a Fund to benefit from the 20% deduction with respect to net REIT dividends
received by the Fund if the Fund meets certain reporting requirements, but do
not permit any such deduction with respect to publicly traded
partnerships.
The
Funds typically make distributions of dividends and capital gains. Dividends are
taxable to you as ordinary income or, in some cases, as qualified dividend
income, depending on the source of such income to the distributing Fund and the
holding period of a Fund for its dividend-paying securities and of you for your
Fund shares. The rate you pay on capital gain distributions will depend on how
long a Fund held the securities that generated the gains, not on how long you
owned your Fund shares. You will be taxed in the same manner whether you receive
your dividends and capital gain distributions in cash or reinvest them in
additional Fund shares. A portion of ordinary income dividends paid by a Fund
may be qualified dividend income eligible for taxation at long-term capital gain
rates for individual investors, provided that certain holding period and other
requirements are met. A 3.8% surtax applies to net investment income (which
generally will include dividends and capital gains from an investment in a Fund)
of shareholders with adjusted gross incomes over $200,000 for single filers and
$250,000 for married joint filers. Although distributions are generally taxable
when received, certain distributions declared in October, November, or December
to shareholders of record on a specified date in such a month but made in the
following January are taxable as if received the prior December.
By
law, the Funds must withhold as backup withholding, at a rate under Section 3406
of the Code from your taxable distributions and redemption proceeds if you do
not provide your correct Social Security or taxpayer identification number and
certify that you are not subject to backup withholding, or if the Internal
Revenue Service instructs the Funds to do so. Backup withholding is not an
additional tax and any amount withheld may be credited against a shareholder’s
ultimate federal income tax liability if proper documentation is timely
provided.
Sale
or exchange of your Fund shares is a taxable event for you. Depending on the
purchase price and the sale price of the shares you sell or exchange, you may
have a gain or a loss on the transaction. You are responsible for any tax
liabilities generated by your transaction and your investment in the Funds. The
Code limits the deductibility of capital losses in certain
circumstances.
The
Funds’ distributions, whether received in cash or reinvested in additional
shares of the Funds, may be subject to federal, state and local income tax. In
managing the Funds, the Adviser does not consider the tax effects of its
investment decisions to be of primary importance.
Additional
information concerning taxation of the Funds and their shareholders is contained
in the SAI. You should consult your own tax adviser concerning federal, state
and local taxation of distributions from the Funds.
DISTRIBUTION
OF FUND SHARES
Distribution
and Service (Rule 12b-1) Plan
The
Board has adopted a plan pursuant to Rule 12b-1 that allows the Retail Class to
pay distribution and service fees for the sale, distribution and servicing of
its shares. The plan provides for the payment of a distribution and service fee
at the annual rate of 0.25% of average daily net assets of the applicable Fund’s
Retail Class shares. Because these fees are paid out of the Fund’s assets, over
time these fees will increase the cost of your investment and may cost you more
than paying other types of sales charges.
Shareholder
Servicing Plan
Under
a Shareholder Servicing Plan, each Fund will pay service fees of up to 0.10% of
average daily net assets to intermediaries such as banks, broker-dealers,
financial advisers or other financial institutions, for sub-administration,
sub-transfer agency and other shareholder services associated with shareholders
whose shares are held of record in omnibus, other group accounts or accounts
traded through registered securities clearing agents. As these fees are paid out
of a Fund’s assets, 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 have policies and procedures in place for the monitoring of payments to
broker-dealers and other financial intermediaries for distribution-related
activities and the following non-distribution activities: sub-transfer agent,
administrative, and other shareholder servicing services.
Service
Fees – Other Payments to Third Parties
The
Adviser, out of its own resources, and without additional cost to the Funds or
their shareholders, may provide additional cash payments or non-cash
compensation to intermediaries who sell shares of the Funds. These additional
cash payments are generally made to intermediaries that provide shareholder
servicing, marketing support and/or access to sales meetings, sales
representatives and management representatives of the intermediary. Cash
compensation may also be paid to intermediaries for inclusion of the Funds on a
sales list, including a preferred or select sales list, in other sales programs
or as an expense reimbursement in cases where the intermediary provides
shareholder services to the Funds’ shareholders. The Adviser may also pay cash
compensation in the form of finder’s fees that vary depending on the Fund and
the dollar amount of the shares sold.
INDEX
DESCRIPTIONS
Please
note that you cannot invest directly in an index, although you may invest in the
underlying securities represented in the index.
The
Russell
1000 Value Index
is a composite of large and mid-cap companies located in the United States that
also exhibit a value probability. The Russell 1000 Value is published and
maintained by FTSE Russell.
The
S&P
500®
Index
is a broad-based unmanaged index of 500 stocks, which is widely recognized as
representative of the equity market in general.
The
Bloomberg
U.S.
Aggregate Bond Index
is a broad-based index composed of U.S. dollar denominated, investment grade,
fixed-rate taxable bonds which includes treasuries, government-related
securities, mortgage backed securities, asset backed securities, and commercial
mortgage backed securities.
The
Lipper
Balanced Funds Index
tracks funds whose primary objective is to conserve principal by maintaining, at
all times, a balanced portfolio of both stocks and bonds. Typically,
the stock/bond ratio ranges around 60%/40%.
The
MSCI
All Country World Index
a market capitalization weighted index designed to provide a broad measure of
equity-market performance throughout the world. The MSCI ACWI is maintained by
Morgan Stanley Capital International, and is comprised of stocks from both
developed and emerging markets.
FINANCIAL
HIGHLIGHTS
The
financial highlights table is intended to help you understand each Fund’s
financial performance for the period of the Fund’s operations. Certain
information reflects financial results for a single Fund share. The total
returns in the table represent the rate that an investor would have earned (or
lost) on an investment in the Fund (assuming reinvestment of all dividends and
distributions). This information has been audited by Tait, Weller & Baker
LLP, an independent registered public accounting firm, whose report, along with
the Funds’ financial statements, are included in the annual report dated
September 30, 2022, which are available upon request.
Scharf
Fund
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
Year
Ended September 30, |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
|
|
| |
Net
asset value, beginning of year |
$54.78 |
|
| $46.02 |
|
| $46.21 |
|
| $46.72 |
|
| $44.08 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income^ |
0.29 |
|
| 0.39 |
|
| 0.34 |
|
| 0.23 |
|
| 0.26 |
|
|
|
| |
Net
realized and unrealized gain/(loss) on investments and foreign
currency |
(5.26) |
|
| 10.14 |
|
| 3.35 |
|
| 2.99 |
|
| 3.61 |
|
|
|
| |
Total
from investment operations |
(4.97) |
|
| 10.53 |
|
| 3.69 |
|
| 3.22 |
|
| 3.87 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
(0.38) |
|
| (0.37) |
|
| (0.24) |
|
| (0.39) |
|
| (0.08) |
|
|
|
| |
From
net realized gain on investments |
(5.03) |
|
| (1.40) |
|
| (3.64) |
|
| (3.34) |
|
| (1.15) |
|
|
|
| |
Total
distributions |
(5.41) |
|
| (1.77) |
|
| (3.88) |
|
| (3.73) |
|
| (1.23) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Paid-in
capital from redemption fees^# |
0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, end of year |
$44.40 |
|
| $54.78 |
|
| $46.02 |
|
| $46.21 |
|
| $46.72 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return |
-10.69 |
% |
| 23.43 |
% |
| 8.12 |
% |
| 7.61 |
% |
| 8.93 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (thousands) |
$356,162 |
|
| $328,886 |
|
| $282,746 |
|
| $298,028 |
|
| $350,205 |
|
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
0.94 |
% |
| 0.94 |
% |
| 1.00 |
% |
| 1.06 |
% |
| 1.08 |
% |
|
|
| |
After
fee waivers |
0.86 |
% |
| 0.86 |
% |
| 0.90 |
% |
| 0.96 |
% |
| 0.96 |
% |
|
|
| |
Ratio
of net investment income to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
0.48 |
% |
| 0.66 |
% |
| 0.68 |
% |
| 0.44 |
% |
| 0.47 |
% |
|
|
| |
After
fee waivers |
0.56 |
% |
| 0.74 |
% |
| 0.78 |
% |
| 0.54 |
% |
| 0.59 |
% |
|
|
| |
Portfolio
turnover rate |
22.66 |
% |
| 29.21 |
% |
| 52.15 |
% |
| 47.87 |
% |
| 39.71 |
% |
|
|
| |
^ Based
on average shares outstanding.
# Amount
is less than $0.01.
Scharf
Fund
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Retail
Class |
Year
Ended September 30, |
| |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
|
|
| |
Net
asset value, beginning of year |
$54.44 |
|
| $45.74 |
|
| $45.95 |
|
| $46.43 |
|
| $43.87 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income^ |
0.15 |
|
| 0.24 |
|
| 0.22 |
|
| 0.11 |
|
| 0.12 |
|
|
|
| |
Net
realized and unrealized gain/(loss) on investments and foreign
currency |
(5.25) |
|
| 10.09 |
|
| 3.33 |
|
| 2.98 |
|
| 3.59 |
|
|
|
| |
Total
from investment operations |
(5.10) |
|
| 10.33 |
|
| 3.55 |
|
| 3.09 |
|
| 3.71 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
(0.22) |
|
| (0.23) |
|
| (0.12) |
|
| (0.23) |
|
| — |
|
|
|
| |
From
net realized gain on investments |
(5.03) |
|
| (1.40) |
|
| (3.64) |
|
| (3.34) |
|
| (1.15) |
|
|
|
| |
Total
distributions |
(5.25) |
|
| (1.63) |
|
| (3.76) |
|
| (3.57) |
|
| (1.15) |
|
|
|
| |
Paid-in
capital from redemption fees^# |
0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, end of year |
$44.09 |
|
| $54.44 |
|
| $45.74 |
|
| $45.95 |
|
| $46.43 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return |
-10.96% |
| 23.08 |
% |
| 7.83 |
% |
| 7.32 |
% |
| 8.58 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (thousands) |
$5,421 |
|
| $71,730 |
|
| $66,531 |
|
| $72,710 |
|
| $70,365 |
|
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
1.22 |
% |
| 1.22 |
% |
| 1.29 |
% |
| 1.34 |
% |
| 1.39 |
% |
|
|
| |
After
fee waivers |
1.14 |
% |
| 1.14 |
% |
| 1.19 |
% |
| 1.24 |
% |
| 1.27 |
% |
|
|
| |
Ratio
of net investment income to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
0.20 |
% |
| 0.38 |
% |
| 0.39 |
% |
| 0.16 |
% |
| 0.16 |
% |
|
|
| |
After
fee waivers |
0.28 |
% |
| 0.46 |
% |
| 0.49 |
% |
| 0.26 |
% |
| 0.28 |
% |
|
|
| |
Portfolio
turnover rate |
22.66 |
% |
| 29.21 |
% |
| 52.15 |
% |
| 47.87 |
% |
| 39.71 |
% |
|
|
| |
^ Based
on average shares outstanding.
# Amount
is less than $0.01.
Scharf
Multi-Asset Opportunity Fund
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
Year
Ended September 30, |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
|
|
|
| |
Net
asset value, beginning of year |
$38.14 |
|
| $34.01 |
|
| $33.55 |
|
| $33.58 |
|
| $32.27 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income^ |
0.19 |
|
| 0.28 |
|
| 0.33 |
|
| 0.38 |
|
| 0.34 |
|
|
|
|
| |
Net
realized and unrealized gain/(loss) on investments and foreign
currency |
(3.69) |
|
| 5.18 |
|
| 2.60 |
|
| 1.70 |
|
| 1.67 |
|
|
|
|
| |
Total
from investment operations |
(3.50) |
|
| 5.46 |
|
| 2.93 |
|
| 2.08 |
|
| 2.01 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
(0.30) |
|
| (0.31) |
|
| (0.43) |
|
| (0.49) |
|
| (0.07) |
|
|
|
|
| |
From
net realized gain on investments |
(3.18) |
|
| (1.02) |
|
| (2.04) |
|
| (1.62) |
|
| (0.63) |
|
|
|
|
| |
Total
distributions |
(3.48) |
|
| (1.33) |
|
| (2.47) |
|
| (2.11) |
|
| (0.70) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Paid-in
capital from redemption fees |
0.00^# |
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
asset value, end of year |
$31.16 |
|
| $38.14 |
|
| $34.01 |
|
| $33.55 |
|
| $33.58 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return |
-10.48 |
% |
| 16.46 |
% |
| 8.99 |
% |
| 6.89 |
% |
| 6.32 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (thousands) |
$36,772 |
|
| $43,738 |
|
| $40,450 |
|
| $43,865 |
|
| $46,366 |
|
|
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
1.43 |
% |
| 1.46 |
% |
| 1.47 |
% |
| 1.45 |
% |
| 1.44 |
% |
|
|
|
| |
After
fee waivers |
0.97 |
% |
| 0.97 |
% |
| 0.96 |
% |
| 0.98 |
% |
| 0.97 |
% |
|
|
|
| |
Ratio
of net investment income to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
0.08 |
% |
| 0.28 |
% |
| 0.50 |
% |
| 0.71 |
% |
| 0.59 |
% |
|
|
|
| |
After
fee waivers |
0.54 |
% |
| 0.77 |
% |
| 1.01 |
% |
| 1.18 |
% |
| 1.06 |
% |
|
|
|
| |
Portfolio
turnover rate |
20.53 |
% |
| 28.67 |
% |
| 48.02 |
% |
| 45.52 |
% |
| 36.29 |
% |
|
|
|
| |
^ Based
on average shares outstanding.
# Amount
is less than $0.01.
Scharf
Multi-Asset Opportunity Fund
For
a share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Retail
Class |
Year
Ended September 30, |
|
| |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
| 2018 |
|
|
|
| |
Net
asset value, beginning of year |
$38.02 |
|
| $33.91 |
|
| $33.47 |
|
| $33.44 |
|
| $32.16 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
investment income^ |
0.09 |
|
| 0.19 |
|
| 0.24 |
|
| 0.29 |
|
| 0.26 |
|
|
|
|
| |
Net
realized and unrealized gain/(loss) on investments and foreign
currency |
(3.68) |
|
| 5.17 |
|
| 2.59 |
|
| 1.72 |
|
| 1.65 |
|
|
|
|
| |
Total
from investment operations |
(3.59) |
|
| 5.36 |
|
| 2.83 |
|
| 2.01 |
|
| 1.91 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
From
net investment income |
(0.20) |
|
| (0.23) |
|
| (0.35) |
|
| (0.36) |
|
| (0.00 |
) |
|
|
|
| |
From
net realized gain on investments |
(3.18) |
|
| (1.02) |
|
| (2.04) |
|
| (1.62) |
|
| (0.63) |
|
|
|
|
| |
Total
distributions |
(3.38) |
|
| (1.25) |
|
| (2.39) |
|
| (1.98) |
|
| (0.63) |
|
|
|
|
| |
Paid-in
capital from redemption fees |
0.00^# |
| — |
|
|
0.00^# |
| — |
|
| — |
|
|
|
|
| |
Net
asset value, end of year |
$31.05 |
|
| $38.02 |
|
| $33.91 |
|
| $33.47 |
|
| $33.44 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return |
-10.74 |
% |
| 16.18 |
% |
| 8.68 |
% |
| 6.66 |
% |
| 6.00 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net
assets, end of year (thousands) |
$10,037 |
|
| $6,805 |
|
| $7,359 |
|
| $5,874 |
|
| $7,361 |
|
|
|
|
| |
Ratio
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Before
fee waivers |
1.69 |
% |
| 1.72 |
% |
| 1.74 |
% |
| 1.70 |
% |
| 1.70 |
% |
|
|
|
| |
After
fee waivers |
1.23 |
% |
| 1.23 |
% |
| 1.23 |
% |
| 1.23 |
% |
| 1.23 |
% |
|
|
|
| |
Ratio
of net investment income/(loss) to average net assets: |
|
|
|
|
| |