CARILLON SERIES TRUST
Carillon
Mutual Funds
Prospectus
| April 26,
2024
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Equity
Funds |
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Class A |
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Class C |
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Class I* |
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Class R‑6 |
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Carillon Chartwell Mid Cap Value Fund |
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BERAX |
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BERBX |
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BERCX |
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BERDX |
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Carillon Chartwell Small Cap Growth
Fund |
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CWSAX |
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CWSBX |
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CWSGX |
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CWSRX |
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Carillon Chartwell Small Cap Value Fund |
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CWSCX |
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CWSHX |
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CWSIX |
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CWSWX |
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Carillon ClariVest Capital Appreciation
Fund |
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HRCPX |
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HRCCX |
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HRCIX |
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HRCUX |
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Carillon ClariVest International Stock
Fund |
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EISAX |
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EISDX |
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EISIX |
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EISVX |
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Carillon Eagle Growth & Income
Fund |
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HRCVX |
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HIGCX |
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HIGJX |
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HIGUX |
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Carillon Eagle Mid Cap Growth Fund |
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HAGAX |
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HAGCX |
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HAGIX |
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HRAUX |
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Carillon Eagle Small Cap Growth Fund |
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HRSCX |
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HSCCX |
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HSIIX |
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HSRUX |
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Carillon Scout Mid Cap Fund |
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CSMEX |
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CSMFX |
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UMBMX |
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CSMUX |
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Carillon Scout Small Cap Fund |
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CSSAX |
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CSSJX |
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UMBHX |
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CSSVX |
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Fixed Income Funds |
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Class A |
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Class C |
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Class I* |
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Class R‑6 |
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Carillon Chartwell Real Income Fund |
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BERGX |
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BERHX |
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BERIX |
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BERSX |
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Carillon Chartwell Short Duration High
Yield Fund |
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CWFAX |
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CWFCX |
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CWFIX |
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CWFRX |
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Carillon Reams Core Bond Fund |
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CRCBX |
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CRCDX |
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SCCIX |
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CRCUX |
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Carillon Reams Core Plus Bond Fund |
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SCPDX |
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SCPEX |
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SCPZX |
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SCPWX |
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Carillon Reams Unconstrained Bond Fund |
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SUBDX |
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SUBEX |
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SUBFX |
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SUBTX |
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* Formerly known as Class Chartwell shares offered by
the Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap Growth
Fund, Carillon Chartwell Small Cap Value Fund, Carillon Chartwell Real Income
Fund and Carillon Chartwell Short Duration High Yield Fund:
These securities have not been approved or disapproved
by the Securities and Exchange Commission (“Commission”), nor has the Commission
passed upon the accuracy or adequacy of the funds’ Prospectus. Any
representation to the contrary is a criminal offense.
Table
of Contents
Summaries
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
Investment objective |
The Carillon Chartwell Mid Cap Value Fund (“Mid Cap Value Fund” or
the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Mid Cap Value Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
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Shareholder fees (fees paid directly from
your investment): |
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Class A |
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Class C |
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Class I |
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Class R‑6 |
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Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
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4.75% |
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None |
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None |
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None |
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Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
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None (a) |
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1.00% (a) |
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None |
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None |
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Redemption Fee |
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None |
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None |
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None |
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None |
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Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
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Class A |
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Class C |
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Class I |
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Class R‑6 |
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Management Fees |
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0.65% |
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0.65% |
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0.65% |
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0.65% |
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Distribution and Service (12b‑1) Fees |
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0.25% |
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1.00% |
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0.00% |
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0.00% |
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Other Expenses |
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0.89% (b) |
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0.89% (b) |
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0.84% |
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0.74% (b) |
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Total Annual Fund Operating Expenses |
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1.79% |
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2.54% |
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1.49% |
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1.39% |
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Fee Waiver and/or Expense Reimbursement
(c) |
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(0.59%) |
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(0.59%) |
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(0.59%) |
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(0.59%) |
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Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
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1.20% |
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1.95% |
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0.90% |
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0.80% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Other Expenses for the
Class A, Class C and Class R‑6 shares are estimated for the
current fiscal year.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 1.20%, Class C – 1.95%,
Class I – 0.90% and Class R‑6 – 0.80%. This expense limitation
excludes interest, taxes, brokerage commissions, costs relating to investments
in other investment companies (acquired fund fees and expenses), dividend and
interest expenses on short sales, expenses incurred in connection with any
merger or reorganization, and extraordinary expenses. The contractual fee
waivers can be changed only with the approval of a majority of the fund’s Board
of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
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Share
Class |
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Year 1 |
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Year 3 |
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Year 5 |
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Year 10 |
Class A |
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$591 |
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$957 |
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$1,346 |
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$2,434 |
Class C |
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$298 |
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$734 |
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$1,298 |
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$2,831 |
Class I |
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$92 |
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$413 |
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$757 |
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$1,729 |
Class R‑6 |
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$82 |
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$382 |
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$704 |
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$1,617 |
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rjinvestmentmanagement.com | 1 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 33% of the average value of its
portfolio.
Principal investment strategies
| Under normal
circumstances, the fund will invest at least 80% of its net assets (including
amounts borrowed for investment purposes) in common stocks of mid-capitalization
U.S. companies. The fund’s subadviser considers mid-capitalization companies to
be those companies that, at the time of initial purchase, have a market
capitalization within the range of the Russell Midcap Value Index during the
most recent 12‑month period (which was approximately $239.1 million and $73.3
billion as of December 31, 2023). The Russell Midcap Value Index is
reconstituted annually. Because the fund’s subadviser defines mid-capitalization
companies by reference to an index, the range of market capitalization of
companies in which the fund invests may vary with market conditions. The fund
may continue to hold securities of companies whose market capitalization was
within the range of the Russell Midcap Value Index at the time of purchase but
whose current market capitalization may be outside of that
range.
The
fund typically invests in common stocks, including U.S. dollar denominated
securities of issuers based outside the U.S. (“foreign issuers”) and real estate
investment trusts (“REITs”). REITs are companies that own, and typically
operate, income-producing real estate or real estate-related assets. The fund
may invest up to 20% of its assets in foreign issuers. The subadviser also may
purchase exchange-traded funds (“ETFs”) designed to track U.S. mid-cap indices
to manage the fund’s cash holdings and gain exposure to the types of securities
in which the fund primarily invests. ETFs are investment companies that invest
in portfolios of securities, often designed to track particular market segments
or indices, the shares of which are bought and sold on a securities
exchange.
The
fund generally invests in companies that its sub-adviser believes to be
undervalued. The subadviser’s investment approach relies heavily on valuation
history to identify opportunities and prioritizes companies with durable
businesses, strong balance sheets, and improving fundamental prospects. Under
normal market conditions, the subadviser generally expects that an investment in
any single issuer will comprise 5% or less of the total value of the assets in
the portfolio. The subadviser also expects that the fund’s exposure to any one
sector will range from 50% to 150% of the weight of that sector in the Russell
Mid Cap Value Index. However, for smaller sectors, the fund’s exposure generally
will be no more than 5 percentage points above or below the weight of that
sector in the Russell Mid Cap Value
Index.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
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2 | rjinvestmentmanagement.com |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional risks:
|
Common
stocks. The value of a company’s common stock
may fall as a result of factors affecting the company, companies in the same
industry or sector, or the financial markets overall. Common stock generally is
subordinate to preferred stock upon the liquidation or bankruptcy of the issuing
company;
REITS.
Investments in REITs are subject
to the risks associated with investing in the real estate industry, such as
adverse developments affecting the real estate industry and real property
values, and are dependent upon the skills of their managers. REITs may not be
diversified geographically or by property or tenant type. REITs typically incur
fees that are separate from those incurred by the fund, meaning the fund, as a
shareholder, will indirectly bear a proportionate share of a REIT’s operating
expenses;
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations;
(2) political and financial instability; (3) less liquidity;
(4) lack of uniform accounting, auditing and financial reporting
standards; (5) increased volatility; (6) less government
regulation and supervision of foreign stock exchanges, brokers and listed
companies; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration
processes |
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rjinvestmentmanagement.com | 3 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
|
against
non‑U.S. companies and non‑U.S. persons in foreign jurisdictions. The
risks associated with investments in governmental or quasi-governmental
entities of a foreign country are heightened by the potential for
unexpected governmental change and inadequate government
oversight; |
• |
|
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
subadviser about the quality, relative yield or value of, or market trends
affecting, a particular security, industry, sector, region, or market
segment, or about the economy or interest rates generally. This judgment
may prove to be incorrect or otherwise may not produce the intended
results, which may result in losses to the fund. Investment strategies
employed by the fund’s subadviser in selecting investments for the fund
may not result in an increase in the value of your investment or in
overall performance equal to other
investments; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests. The fund and
its shareholders will indirectly bear the fund’s proportionate share of
the fees and expenses paid by shareholders of the other investment
company, in addition to the fees and expenses fund shareholders directly
bear in connection with the fund’s own operations. ETF shares may trade at
a premium or discount to their net asset value. An ETF that tracks an
index may not precisely replicate the returns of its benchmark
index; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment
style. |
Performance
| The fund is the
successor to the Chartwell Mid Cap Value Fund (“Predecessor Fund”) pursuant to a
reorganization involving the fund and the Predecessor Fund that occurred on
July 1, 2022. The Class I shares of the fund have adopted the
performance history and financial statements of the Predecessor Fund. Prior to
April 26, 2024, the Class I shares of the fund were designated as
Class Chartwell shares. Prior to the date of the reorganization, the fund
had no investment operations. Accordingly, the performance information,
including information on fees and expenses and financial information provided in
this prospectus for periods prior to the reorganization (the fund’s commencement
of operations) is historical information for the Predecessor Fund. Given the
above, unless specifically stated otherwise, subsequent references in this
section to the fund should be read to include the Predecessor Fund, as well as
the other predecessor funds described
below.
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Berwyn Cornerstone Fund (the “IMST Predecessor Fund”), a series of
Investment Managers Series Trust, on July 17, 2017. The IMST Predecessor
Fund acquired the assets and liabilities of the Berwyn Cornerstone Fund (the
“Berwyn Funds Predecessor Fund,” and together with the IMST Predecessor Fund and
the Predecessor Fund, the “Predecessor Funds”), a series of The Berwyn Funds, on
April 29, 2016. As a result of the reorganizations, the fund is the
accounting successor of the Predecessor Funds. Performance results shown in the
bar chart and the performance table below reflect the performance of the IMST
Predecessor Fund for the period from April 29, 2016 through July 17,
2017, and the performance of the Berwyn Funds Predecessor Fund for the period
prior to April 29, 2016. The Predecessor Funds’ past performance, before
and after taxes, is not necessarily an indication of how the fund will perform
in the future. The fund’s principal investment strategies differ from those of
the Predecessor Funds; therefore, the performance and average annual total
returns shown for periods prior to the reorganization may have differed had the
fund’s current investment strategy been in effect during those
periods.
The
bar chart that follows illustrates annual fund returns for the periods ended
December 31. The table that follows compares the fund’s returns for various
periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to
another.
Performance information is not shown for the
fund’s Class A, Class C and Class R‑6 shares because those share
classes had not commenced operations prior to the date of this
prospectus. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
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4 | rjinvestmentmanagement.com |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
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During 10 year period (Class I
shares): |
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Return |
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Quarter Ended |
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Best Quarter |
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17.88% |
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December 31, 2020 |
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Worst Quarter |
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(30.78)% |
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March 31,
2020 |
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Average annual total returns (for the
periods ended December 31, 2023): |
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Fund return (after deduction
of sales charges and
expenses) |
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Fund.
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Share
Class |
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1-yr |
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5-yr |
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10-yr |
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| |
Class
I – Before Taxes |
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6.90% |
|
7.36% |
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4.85% |
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After
Taxes on Distributions |
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6.11% |
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6.95% |
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3.46% |
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After
Taxes on Distributions and Sale of Fund Shares |
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4.64% |
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5.76% |
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3.44% |
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Index (reflects no deduction for fees,
expenses or taxes) |
|
|
| |
|
|
1-yr |
|
5-yr |
|
10-yr |
|
|
| |
Russell Midcap Value Index |
|
12.71% |
|
11.16% |
|
8.26% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Chartwell Investment Partners, LLC
(“Chartwell”) serves as the subadviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA® and T. Ryan Harkins,
CFA®, who have served as
Portfolio Managers of the fund since its inception on July 1, 2022, and
Reid T. Halloran, who has served as Portfolio Manager of the fund since
January 1, 2024, are jointly and primarily responsible for the day‑to‑day
management of the fund. Effective March 31, 2025, Mr. Dalrymple will retire as a
portfolio manager of the fund. Mr. Dalrymple has served as Chartwell’s
Managing Partner and Senior Portfolio Manager since 1997, and served as a member
of the applicable Predecessor Funds’ portfolio management teams prior to
July 1, 2022. Mr. Harkins served as a member of the Predecessor Fund’s
portfolio management team from March 1, 2020 through June 2022.
|
| |
| |
rjinvestmentmanagement.com | 5 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL MID CAP VALUE
FUND | 4.26.2024
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R‑6 shares, other than those purchased through a participating
retirement plan, the minimum initial purchase is $1,000,000. For Class R‑6
shares purchased through a participating retirement plan, the minimum initial
purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
6 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
Investment objective |
The Carillon Chartwell Small Cap Growth Fund (“Small Cap Growth
Fund” or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Small Cap Growth Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.75% |
|
0.75% |
|
0.75% |
|
0.75% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
1.69% (b) |
|
1.69% (b) |
|
1.64% |
|
1.54% (b) |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
2.69% |
|
3.44% |
|
2.39% |
|
2.29% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(c) |
|
(1.34%) |
|
(1.34%) |
|
(1.34%) |
|
(1.34%) |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.35% |
|
2.10% |
|
1.05% |
|
0.95% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Other Expenses for the
Class A, Class C and Class R‑6 shares are estimated for the
current fiscal year.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 1.35%, Class C – 2.10%,
Class I – 1.05% and Class R‑6 – 0.95%. This expense limitation
excludes interest, taxes, brokerage commissions, costs relating to investments
in other investment companies (acquired fund fees and expenses), dividend and
interest expenses on short sales, expenses incurred in connection with any
merger or reorganization, and extraordinary expenses. The contractual fee
waivers can be changed only with the approval of a majority of the fund’s Board
of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$606 |
|
$1,149 |
|
$1,718 |
|
$3,260 |
Class C |
|
$313 |
|
$932 |
|
$1,674 |
|
$3,631 |
Class I |
|
$107 |
|
$617 |
|
$1,154 |
|
$2,624 |
Class R‑6 |
|
$97 |
|
$586 |
|
$1,103 |
|
$2,522 |
|
| |
| |
rjinvestmentmanagement.com | 7 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 72% of the average value of its
portfolio.
Principal investment strategies
| Under normal
circumstances, the fund will invest at least 80% of its net assets (including
amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund’s subadviser considers small
capitalization companies to be those that, at the time of initial purchase, have
a market capitalization generally within the range of the Russell 2000 Growth
Index during the most recent 12‑month period (which was approximately $1.86
million and $17.4 billion as of December 31, 2023). The Russell 2000 Growth
Index is reconstituted annually. Because the fund’s subadviser defines small
capitalization companies by reference to an index, the range of market
capitalization of companies in which the fund invests may vary with market
conditions. The fund may continue to hold securities of companies whose market
capitalization was within the range of the Russell 2000 Growth Index at the time
of purchase but whose current market capitalization may be outside of that
range.
The
fund typically invests in common stocks, including U.S. dollar denominated
securities of issuers based outside the U.S. (“foreign issuers”). The fund may
invest up to 20% of its assets in foreign issuers. The fund may have significant
exposure to the Health Care, Industrials and Information Technology sectors.
However, as the sector composition of the fund’s portfolio changes over time,
the fund’s exposure to these sectors may be lower at a future date and the
fund’s exposure to other market sectors may be higher. The sub-adviser also may
purchase exchange-traded funds (“ETFs”) designed to track U.S. small-cap indices
to manage the fund’s cash holdings and gain exposure to the types of securities
in which the fund primarily invests. ETFs are investment companies that invest
in portfolios of securities, often designed to track particular market segments
or indices, the shares of which are bought and sold on a securities
exchange.
The
fund’s subadviser uses a “growth” style of management and seeks to identify
companies with above average potential for earnings growth. Under normal market
conditions, the subadviser expects that: (1) an investment in any single issuer
(at the time of purchase) will comprise less than 5% of the total value of the
assets in the portfolio; and (2) an investment in any one sector (at the time of
purchase) will not exceed the greater of: (i) 150% of the benchmark sector
weight, or (ii) 25% of the total value of the assets in the
portfolio.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
|
| |
8 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional risks:
|
Common
stocks. The value of a
company’s common stock may fall as a result of factors affecting the company,
companies in the same industry or sector, or the financial markets overall.
Common stock generally is subordinate to preferred stock upon the liquidation or
bankruptcy of the issuing company;
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment
style; |
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations;
(2) political and financial instability; (3) less liquidity;
(4) lack of uniform accounting, auditing and financial reporting
standards; (5) increased volatility; (6) less government
regulation and supervision of foreign stock exchanges, brokers and listed
companies; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
|
| |
| |
rjinvestmentmanagement.com | 9 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
• |
|
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
subadviser about the quality, relative yield or value of, or market trends
affecting, a particular security, industry, sector, region, or market
segment, or about the economy or interest rates generally. This judgment
may prove to be incorrect or otherwise may not produce the intended
results, which may result in losses to the fund. Investment strategies
employed by the fund’s subadviser in selecting investments for the fund
may not result in an increase in the value of your investment or in
overall performance equal to other
investments; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests. The fund and
its shareholders will indirectly bear the fund’s proportionate share of
the fees and expenses paid by shareholders of the other investment
company, in addition to the fees and expenses fund shareholders directly
bear in connection with the fund’s own operations. ETF shares may trade at
a premium or discount to their net asset value. An ETF that tracks an
index may not precisely replicate the returns of its benchmark
index; |
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or
lower. |
Health care sector risk is the risk that the
health care sector may be affected by government regulations and government
health care programs, restrictions on government reimbursement for medical
expenses, increases or decreases in the cost of medical products and services
and product liability claims, among other factors. Many health care products and
services may be subject to regulatory approvals. The process of obtaining such
approvals may be long and costly, and delays in or failure to receive such
approvals may negatively impact the business of such companies. Additional or
more stringent laws and regulations enacted in the future could have a material
adverse effect on such companies in the health care sector. Issuers in the
health care sector include issuers with their principal activities in the
biotechnology industry, which has additional risks. A biotechnology company’s
valuation can often be based largely on the potential or actual performance of a
limited number of products and, accordingly, can be significantly affected if
one of its products proves unsafe, ineffective or unprofitable. Health care
companies are subject to regulation by, and the restrictions of, federal
agencies, state and local governments, and non-U.S. regulatory
authorities;
Industrials sector risk is the risk that
companies in the industrials sector may be adversely affected by general
economic trends, including employment, economic growth, and interest rates,
changes in consumer sentiment and spending, commodity prices, legislation,
government regulation and spending, import controls, and worldwide competition.
In addition, companies in the industrials sector may be adversely affected by
liability for environmental damages, product liability claims and exchange
rates. The products of companies in the industrials sector also may face product
obsolescence due to rapid technological developments and frequent new product
introduction. The industrials sector includes companies engaged in the
construction, engineering, machinery, energy services, transportation,
professional services, and aerospace and defense
industries;
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or personnel. Failure
to introduce new products, develop and maintain a loyal customer base or achieve
general market acceptance for their products could have a material adverse
effect on a company’s business. Companies in the information technology sector
also may be subject to increased government scrutiny or adverse government
regulatory action. Additionally, companies in the information technology sector
are heavily dependent on intellectual property and the loss of patent, copyright
and trademark protections may adversely affect the profitability of these
companies. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market
prices;
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Small-cap company risk arises because
small‑cap companies involve greater risks than investing in large-
capitalization companies. Small‑cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these
risks. |
Performance
| The fund is the
successor to the Chartwell Small Cap Growth Fund (“Predecessor Fund”) pursuant
to a reorganization involving the fund and the Predecessor Fund that occurred on
July 1, 2022. The Class I shares of the fund have adopted the
performance history and financial statements of the Predecessor Fund. Prior to
April 26, 2024, the Class I shares of the fund were designated as
Class Chartwell shares. Prior to the date of the reorganization, the fund
had no investment operations. Accordingly, the performance information,
including information on fees and expenses and financial information provided in
this prospectus for periods prior to the reorganization (the fund’s commencement
of operations) is historical information for the Predecessor Fund. Given the
above, unless specifically stated otherwise, subsequent references in this
section to the fund should be read to include the Predecessor
Fund.
|
| |
10 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
The
bar chart that follows illustrates annual fund returns for the periods ended
December 31. The table that follows compares the fund’s returns for various
periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to
another.
Performance information is not shown for the
fund’s Class A, Class C and Class R‑6 shares because those share
classes had not commenced operations prior to the date of this
prospectus. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During period (Class I shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
27.67% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(22.31)% |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
| |
|
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after deduction
of sales charges and
expenses) |
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Fund.
|
|
|
|
|
| |
|
|
| |
Share
Class |
|
1-yr |
|
5-yr |
|
Since Inception (June 16, 2017) |
|
|
| |
Class
I – Before Taxes |
|
22.41% |
|
12.34% |
|
9.66% |
|
|
| |
After
Taxes on Distributions |
|
22.41% |
|
10.46% |
|
8.24% |
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
13.27% |
|
9.64% |
|
7.58% |
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
| |
|
|
1-yr |
|
5-yr |
|
Since Inception (June 16, 2017) |
|
|
| |
Russell 2000 Growth Index |
|
18.66% |
|
9.22% |
|
7.30% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
|
| |
| |
rjinvestmentmanagement.com | 11 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP GROWTH
FUND | 4.26.2024
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Chartwell Investment Partners, LLC
(“Chartwell”) serves as the subadviser to the fund.
Portfolio Managers | Frank L. Sustersic,
CFA® and Theresa H. Tran,
CFA® are the Portfolio
Managers of the fund and are jointly and primarily responsible for all aspects
of the fund’s management. Mr. Sustersic and Ms. Tran have managed the fund since
July 2022. Mr. Sustersic served as the Portfolio Manager of the Predecessor Fund
from its inception in 2017 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R‑6 shares, other than those purchased through a participating
retirement plan, the minimum initial purchase is $1,000,000. For Class R‑6
shares purchased through a participating retirement plan, the minimum initial
purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
12 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
Investment objective |
The Carillon Chartwell Small Cap Value Fund (“Small Cap Value
Fund” or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Small Cap Value Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.80% |
|
0.80% |
|
0.80% |
|
0.80% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.51% (b) |
|
0.51% (b) |
|
0.46% |
|
0.36% (b) |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.56% |
|
2.31% |
|
1.26% |
|
1.16% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(c) |
|
(0.21%) |
|
(0.21%) |
|
(0.21%) |
|
(0.21%) |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.35% |
|
2.10% |
|
1.05% |
|
0.95% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Other Expenses for the
Class A, Class C and Class R‑6 shares are estimated for the
current fiscal year.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 1.35%, Class C – 2.10%,
Class I – 1.05% and Class R‑6 – 0.95%. This expense limitation
excludes interest, taxes, brokerage commissions, costs relating to investments
in other investment companies (acquired fund fees and expenses), dividend and
interest expenses on short sales, expenses incurred in connection with any
merger or reorganization, and extraordinary expenses. The contractual fee
waivers can be changed only with the approval of a majority of the fund’s Board
of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$606 |
|
$925 |
|
$1,266 |
|
$2,226 |
Class C |
|
$313 |
|
$701 |
|
$1,216 |
|
$2,630 |
Class I |
|
$107 |
|
$379 |
|
$671 |
|
$1,504 |
Class R‑6 |
|
$97 |
|
$348 |
|
$618 |
|
$1,390 |
|
| |
| |
rjinvestmentmanagement.com | 13 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 27% of the average value of its
portfolio.
Principal investment strategies
| Under normal
circumstances, the fund will invest at least 80% of its net assets (including
amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund’s subadviser considers small
capitalization companies to be those companies that, at the time of initial
purchase, have a market capitalization within the range of the Russell 2000
Value Index during the most recent 12‑month period (which was approximately
$3.96 million and $10.5 billion as of December 31, 2023). The Russell 2000 Value
Index is reconstituted annually. Because the fund’s subadviser defines small
capitalization companies by reference to an index, the range of market
capitalization of companies in which the fund invests may vary with market
conditions. The fund may continue to hold securities of companies whose market
capitalization was within the range of the Russell 2000 Value Index, at the time
of initial purchase, but whose current market capitalization may be outside of
that range.
The
fund typically invests in common stocks, including U.S. dollar denominated
securities of issuers based outside of the U.S. (“foreign issuers”) and real
estate investment trusts (“REITs”). REITs are companies that own, and typically
operate, income-producing real estate or real estate-related assets. The fund
may invest up to 20% of its assets in foreign issuers. The fund may have
significant exposure to the Financials sector. However, as the sector
composition of the fund’s portfolio changes over time, the fund’s exposure to
this sector may be lower at a future date and the fund’s exposure to other
market sectors may be higher. The subadviser also may purchase exchange-traded
funds (“ETFs”) designed to track U.S. small-cap indices to manage the fund’s
cash holdings and gain exposure to the types of securities in which the fund
primarily invests. ETFs are investment companies that invest in portfolios of
securities, often designed to track particular market segments or indices, the
shares of which are bought and sold on a securities
exchange.
The
fund generally invests in companies that its sub-adviser believes to be
undervalued. The subadviser’s investment approach relies heavily on valuation
history to identify opportunities and prioritizes companies with durable
businesses, strong balance sheets, and improving fundamental prospects. Under
normal market conditions, the subadviser generally expects that an investment in
any single issuer will comprise 5% or less of the total value of the assets in
the portfolio. The subadviser also expects that the fund’s exposure to any one
sector will range from 50% to 150% of the weight of that sector in the Russell
2000 Value Index. However, for smaller sectors, the fund’s exposure generally
will be no more than 5 percentage points above or below the weight of that
sector in the Russell 2000 Value Index.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and
decrease. An investment in the fund is not a
deposit with a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Investments in the fund are subject to the following primary risks. The most
significant risks of investing in the fund as of the date of this Prospectus are
listed first below, followed by the remaining risks in alphabetical order. Each
risk summarized below is considered a “principal risk” of investing in the fund,
regardless of the order in which it appears. Different risks may be more
significant at different times depending on market conditions or other
factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations. |
|
| |
14 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing
company;
REITs.
Investments in REITs are subject to the risks associated with investing in the
real estate industry, such as adverse developments affecting the real estate
industry and real property values, and are dependent upon the skills of their
managers. REITs may not be diversified geographically or by property or tenant
type. REITs typically incur fees that are separate from those incurred by the
fund, meaning the fund, as a shareholder, will indirectly bear a proportionate
share of a REIT’s operating expenses;
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment
style; |
|
| |
| |
rjinvestmentmanagement.com | 15 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations;
(2) political and financial instability; (3) less liquidity;
(4) lack of uniform accounting, auditing and financial reporting
standards; (5) increased volatility; (6) less government
regulation and supervision of foreign stock exchanges, brokers and listed
companies; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
subadviser about the quality, relative yield or value of, or market trends
affecting, a particular security, industry, sector, region, or market
segment, or about the economy or interest rates generally. This judgment
may prove to be incorrect or otherwise may not produce the intended
results, which may result in losses to the fund. Investment strategies
employed by the fund’s subadviser in selecting investments for the fund
may not result in an increase in the value of your investment or in
overall performance equal to other
investments; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests. The fund and
its shareholders will indirectly bear the fund’s proportionate share of
the fees and expenses paid by shareholders of the other investment
company, in addition to the fees and expenses fund shareholders directly
bear in connection with the fund’s own operations. ETF shares may trade at
a premium or discount to their net asset value. An ETF that tracks an
index may not precisely replicate the returns of its benchmark
index; |
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or
lower. |
Financials sector risk is that risk that
financial services companies are subject to extensive governmental regulation,
which may limit both the amounts and types of loans and other financial
commitments they can make, the interest rates and fees they can charge, the
scope of their activities, the prices they can charge and the amount of capital
they must maintain. Profitability is largely dependent on the availability and
cost of capital funds and can fluctuate significantly when interest rates change
or due to increased competition. In addition, deterioration of the credit
markets generally may cause an adverse impact in a broad range of markets,
including U.S. and international credit and interbank money markets generally,
thereby affecting a wide range of financial institutions and markets. Securities
of financial services companies may experience a dramatic decline in value when
such companies experience substantial declines in the valuations of their
assets, take action to raise capital (such as the issuance of debt or equity
securities), or cease operations;
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Small-cap company risk arises because
small‑cap companies involve greater risks than investing in large-
capitalization companies. Small‑cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these
risks. |
Performance
| The fund is the
successor to the Chartwell Small Cap Value Fund (“Predecessor Fund”) pursuant to
a reorganization involving the fund and the Predecessor Fund that occurred on
July 1, 2022. The Class I shares of the fund have adopted the
performance history and financial statements of the Predecessor Fund. Prior to
April 26, 2024, the Class I shares of the fund were designated as
Class Chartwell shares. Prior to the date of the reorganization, the fund
had no investment operations. Accordingly, the performance information,
including information on fees and expenses and financial information provided in
this prospectus for periods prior to the reorganization (the fund’s commencement
of operations) is historical information for the Predecessor Fund. Given the
above, unless specifically stated otherwise, subsequent references in this
section to the fund should be read to include the Predecessor Fund, as well as
the other predecessor funds described
below.
Prior
to this reorganization, the Predecessor Fund acquired the assets and liabilities
of the Chartwell Small Cap Value Fund (the “IMST Predecessor Fund,” and together
with the Chartwell Predecessor Fund, the “Predecessor Funds”), a series of
Investment Managers Series Trust, on July 17, 2017. As a result of the
reorganization, the fund is the accounting successor of the Predecessor Funds.
Performance results shown in the bar chart and the performance table below
reflect the performance of the IMST Predecessor Fund for the period prior to
July 17, 2017. The bar chart that follows illustrates annual fund returns
for the periods ended December 31. The table that follows compares the fund’s
returns for various periods with the returns of its benchmark index.
This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to
another.
|
| |
16 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
Performance information is not shown for the
fund’s Class A, Class C and Class R‑6 shares because those share
classes had not commenced operations prior to the date of this
prospectus. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
25.75% |
|
December 31, 2020 |
|
|
| |
Worst Quarter |
|
| |
(35.01)% |
|
March 31,
2020 |
|
|
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after deduction of sales
charges and expenses) |
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Funds.
|
|
|
|
|
| |
|
|
| |
Share Class |
|
1-yr |
|
5-yr |
|
10-yr |
|
|
| |
Class
I – Before Taxes |
|
12.30% |
|
8.08% |
|
5.88% |
|
|
| |
After
Taxes on Distributions |
|
11.41% |
|
7.11% |
|
5.01% |
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
7.92% |
|
6.31% |
|
4.60% |
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
| |
|
|
1-yr |
|
5-yr |
|
10-yr |
|
|
| |
Russell 2000 Value Index |
|
14.65% |
|
10.00% |
|
6.76% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Chartwell Investment Partners, LLC
(“Chartwell”) serves as the subadviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA® and T. Ryan Harkins,
CFA® , who have served as
Portfolio Managers of the fund since its inception on July 1, 2022, and
Reid T. Halloran, who has served as Portfolio Manager of the fund since
January 1, 2024, are jointly and primarily responsible for the
|
| |
| |
rjinvestmentmanagement.com | 17 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SMALL CAP VALUE
FUND | 4.26.2024
day‑to‑day
management of the fund. Effective March 31, 2025, Mr. Dalrymple will retire as a
portfolio manager of the Fund. Mr. Dalrymple has served as Chartwell’s
Managing Partner and served as the applicable Predecessor Fund’s Senior
Portfolio Manager since its inception on March 16, 2012. Mr. Harkins
served as a member of the Predecessor Fund’s portfolio management team from
March 1, 2020 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R‑6 shares, other than those purchased through a participating
retirement plan, the minimum initial purchase is $1,000,000. For Class R‑6
shares purchased through a participating retirement plan, the minimum initial
purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
18 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
Investment objective |
The Carillon ClariVest Capital Appreciation Fund (“Capital
Appreciation Fund” or the “fund”) seeks long-term capital
appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Capital Appreciation Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
You may
qualify for sales discounts if you and your family invest, or agree to invest in
the future, at least $25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class
I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class
A |
|
Class
C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.60% |
|
0.60% |
|
0.60% |
|
0.60% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.31% |
|
0.29% |
|
0.31% |
|
0.23% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.16% |
|
1.89% |
|
0.91% |
|
0.83% |
|
|
|
| |
Fee Waiver and/or Expense
Reimbursement (b) |
|
(0.16)% |
|
(0.14)% |
|
(0.21)% |
|
(0.23)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.00% |
|
1.75% |
|
0.70% |
|
0.60% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 1.00%, Class C – 1.75%,
Class I – 0.70%, and Class R‑6 – 0.60%. This expense limitation
excludes interest, taxes, brokerage commissions, costs relating to investments
in other investment companies (acquired fund fees and expenses), dividends, and
extraordinary expenses. The contractual fee waivers can be changed only with the
approval of a majority of the fund’s Board of Trustees. Any reimbursement of
fund expenses or reduction in Carillon’s investment advisory fees is subject to
recoupment by the fund within the following two fiscal years, if overall
expenses fall below the lesser of its then-current expense cap or the expense
cap in effect at the time of the fee recoupment.
|
| |
| |
rjinvestmentmanagement.com | 19 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through April 30,
2025. Your costs would be the same whether you sold your shares or continued to
hold them at the end of the period. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$572 |
|
$811 |
|
$1,068 |
|
$1,803 |
Class C |
|
$278 |
|
$580 |
|
$1,008 |
|
$2,200 |
Class I |
|
$72 |
|
$269 |
|
$483 |
|
$1,100 |
Class R‑6 |
|
$61 |
|
$242 |
|
$438 |
|
$1,004 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 31% of the average value of its
portfolio.
Principal investment strategies
| During normal market
conditions, the Capital Appreciation Fund seeks to achieve its objective by
investing at least 65% of its net assets in common stocks of companies that have
the potential for attractive long-term growth in earnings, cash flow and total
worth of the company. In addition, the portfolio management team prefers to
purchase stocks that appear to be underpriced in relation to the company’s
long-term growth fundamentals. The strategy of the fund’s portfolio management
team is based upon systematic analysis of fundamental and technical factors,
significantly aided by a quantitative process. The fund typically invests in the
stocks of large- and mid‑capitalization companies, but may invest in the stocks
of companies of any size without regard to market capitalization. Although the
portfolio management team generally does not emphasize investment in any
particular investment sector or industry, the fund may invest a significant
portion of its assets in the securities of companies in the information
technology sector at any given time. The fund may sell securities when they no
longer meet the portfolio management team’s investment
criteria.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Common
stocks. The value of a company’s common stock may
fall as a result of factors affecting the company, companies in the same
industry or sector, or the financial markets overall. Common stock generally is
subordinate to preferred stock upon the liquidation or bankruptcy of the issuing
company;
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment
style; |
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a
federal |
|
| |
20 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
|
government
shutdown and threats or the occurrence of a failure to increase the
federal government’s debt limit, which could result in a default on the
government’s obligations, may affect investor and consumer confidence and
may adversely impact financial markets and the broader economy, perhaps
suddenly and to a significant degree. These and other conditions may cause
broad changes in market value, the general outlook for corporate earnings,
public perceptions concerning these developments or adverse investment
sentiment generally. Changes in the financial condition of a single
issuer, industry or market segment also can impact the market as a whole.
In addition, adverse market events may lead to increased redemptions,
which could cause the fund to experience a loss when selling securities to
meet redemption requests by shareholders. Adverse market conditions may be
prolonged and may not have the same impact on all types of securities.
Conversely, it is also possible that, during a general downturn in the
securities markets, multiple asset classes may decline in value
simultaneously. Changes in value may be temporary or may last for extended
periods. The financial markets generally move in cycles, with periods
of rising prices followed by periods of declining prices. The value of
your investment may reflect these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Large cap company risk arises because
large-cap companies may be less responsive to competitive challenges and
opportunities, and may be unable to attain high growth rates, relative to
smaller companies; |
• |
|
Micro-capitalization company risk arises
because micro-cap companies may have less predictable earnings and
revenues; experience significant losses; lack an operating history,
product lines, or financial resources; have volatile share prices and less
liquid markets; and trade less frequently than larger, more established
companies; |
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
|
| |
| |
rjinvestmentmanagement.com | 21 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
• |
|
Quantitative strategy risk is the risk
that the success of the fund’s investment strategy may depend in part on
the effectiveness of the subadviser’s quantitative tools for screening
securities. These strategies may incorporate factors that may not be
predictive of a security’s value. The subadviser’s stock selection can be
adversely affected if it relies on insufficient, erroneous or outdated
data or flawed models or computer
systems; |
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or
lower. |
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or personnel. Failure
to introduce new products, develop and maintain a loyal customer base or achieve
general market acceptance for their products could have a material adverse
effect on a company’s business. Companies in the information technology sector
also may be subject to increased government scrutiny or adverse government
regulatory action. Additionally, companies in the information technology sector
are heavily dependent on intellectual property and the loss of patent, copyright
and trademark protections may adversely affect the profitability of these
companies. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market
prices;
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially; |
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these risks;
and |
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non-value approach to investing
or have a broader investment
style. |
Performance
| The bar chart that follows
illustrates annual fund returns for the periods ended December 31. The table
that follows compares the fund’s returns for various periods with those of its
benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
27.28% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(19.92)% |
|
June 30,
2022 |
|
| |
22 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
|
|
|
|
|
|
|
|
|
| |
|
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after
deduction of sales charges and expenses) |
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
| |
Class I
– Before Taxes |
|
3/21/06 |
|
39.90% |
|
17.36% |
|
13.46% |
|
|
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
36.41% |
|
14.68% |
|
10.88% |
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
26.13% |
|
13.71% |
|
10.45% |
|
|
|
|
|
|
| |
Class A
– Before Taxes |
|
12/12/85 |
|
32.85% |
|
15.87% |
|
12.57% |
|
|
|
|
|
|
| |
Class C
– Before Taxes |
|
4/3/95 |
|
38.46% |
|
16.13% |
|
12.26% |
|
|
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
7/31/15 |
|
40.06% |
|
17.58% |
|
| |
13.33% |
|
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(From the inception date of
Class R‑6 Shares) |
|
|
|
|
| |
Russell 1000® Growth Index |
|
| |
42.68% |
|
19.50% |
|
14.86% |
|
15.19% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | ClariVest Asset Management LLC
(“ClariVest”) serves as the subadviser to the fund.
Portfolio Managers | Ed Wagner, CFA®, Amanda Freeman, CFA®, C. Frank Feng, Ph.D., and
Todd N. Wolter, CFA®, are
Portfolio Co-Managers of the fund. Mr. Wagner, Ms. Freeman, Dr. Feng, and Mr.
Wolter are jointly and primarily responsible for the day-to-day management of
the fund. Messrs. Wagner and Feng have been Portfolio Co-Managers of the fund
since 2013. Ms. Freeman has served as the fund’s Portfolio Co-Manager since
April 2024. Mr. Wolter has served as the fund’s Portfolio Co-Manager since
February 2019.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
|
| |
| |
rjinvestmentmanagement.com | 23 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST CAPITAL APPRECIATION
FUND | 4.26.2024
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
24 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
Investment objective |
The Carillon ClariVest International Stock Fund (“International
Stock Fund” or the “fund”) seeks capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the International Stock Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class
R‑6 |
|
|
|
| |
Management Fees |
|
0.70% |
|
0.70% |
|
0.70% |
|
0.70% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.32% |
|
0.30% |
|
0.33% |
|
0.25% |
|
|
|
| |
Acquired Fund Fees and Expenses |
|
0.01% |
|
0.01% |
|
0.01% |
|
0.01% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.28% |
|
2.01% |
|
1.04% |
|
0.96% |
|
|
|
| |
Fee Waiver and/or Expense
Reimbursement (c) |
|
(0.02)% |
|
0.00% |
|
(0.08)% |
|
(0.10)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.26% |
|
2.01% |
|
0.96% |
|
0.86% |
(a) If you purchased
$1,000,000 or more of Class A shares of a Carillon mutual fund that were not
otherwise eligible for a sales charge waiver and sell the shares within 18
months from the date of purchase, you may pay up to a 1% contingent deferred
sales charge (“CDSC”) at the time of sale. If you sell Class C shares less than
one year after purchase, you will pay a 1% CDSC at the time of
sale.
(b) The Total Annual
Fund Operating Expenses do not correlate to the ratio of expenses to average net
assets provided in the fund’s Financial Highlights table, which reflects the
operating expenses of the fund and does not include Acquired Fund Fees and
Expenses.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of a class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 1.25%, Class I – 0.95% and Class R-6
– 0.85%. This expense limitation excludes interest, taxes, brokerage
commissions, costs relating to investments in other investment companies
(acquired fund fees and expenses), dividends, and extraordinary expenses. The
contractual fee waivers can be changed only with the approval of a majority of
the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in
Carillon’s investment advisory fees is subject to recoupment by the fund within
the following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
|
| |
| |
rjinvestmentmanagement.com | 25 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for the Class A, Class I and Class R-6
shares through April 30, 2025. Your costs would be the same whether you sold
your shares or continued to hold them at the end of the period. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$597 |
|
$860 |
|
$1,142 |
|
$1,945 |
Class C |
|
$304 |
|
$630 |
|
$1,083 |
|
$2,338 |
Class I |
|
$98 |
|
$323 |
|
$566 |
|
$1,264 |
Class R‑6 |
|
$88 |
|
$296 |
|
$521 |
|
$1,169 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 44% of the average value of its
portfolio.
Principal investment strategies
| The International
Stock Fund invests, under normal market conditions, at least 80% of its net
assets (plus the amount of any borrowings for investment purposes) in equity
securities of companies economically tied to countries outside of the U.S. that
have the potential for attractive long-term growth in earnings, cash flow and
total worth of the company. Equity securities include common and preferred
stocks, warrants or rights exercisable into common or preferred stock,
convertible preferred stock, American Depositary Receipts (“ADRs”), Global
Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”)
(collectively, “depositary receipts”). Issuers considered to be economically
tied to countries outside of the U.S. include, without limitation: (1) an
issuer organized under the laws of or maintaining a principal office or
principal place(s) of business outside of the U.S.; (2) an issuer of securities
that are principally traded in one or more markets outside the U.S.; (3) an
issuer that derives or is currently expected to derive 50% or more of its total
sales, revenues, profits, earnings, growth, or another measure of economic
activity from, the production or sale of goods or performance of services or
making of investments or other economic activity in, outside of the U.S., or
that maintains or is currently expected to maintain 50% or more of its
employees, assets, investments, operations, or other business activity outside
of the U.S.; or (4) a governmental or quasi-governmental entity of a country
outside of the U.S. The fund also may invest in issuers located in emerging
market countries. The fund’s benchmark is the MSCI ACWI ex-US ® Index which is a
float-adjusted market capitalization index that is designed to measure the
combined equity market performance of large- and mid-cap securities in developed
and emerging market countries excluding the United States. The fund may have
significant exposure to Japan. However, as the composition of the fund’s
portfolio changes over time, the fund’s exposure to this country may be lower at
a future date, and the fund’s exposure to other countries may be higher. The
fund may invest in issuers of all market
capitalizations.
In
selecting securities for the fund, the subadviser utilizes quantitative tools to
implement a “bottom‑up,” fundamentally based, investment process. The subadviser
constructs a portfolio that seeks to maximize expected return, subject to
constraints designed to meet long‑run expected active risk
goals.
The
fund may invest in exchange-traded funds (“ETFs”) in order to equitize cash
positions, seek exposure to certain markets or market sectors and to hedge
against certain market movements. The fund may sell securities when they no
longer meet the portfolio managers’ investment criteria and/or to take advantage
of more attractive investment
opportunities.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Common
stocks. The value of a
company’s common stock may fall as a result of factors affecting the company,
companies in the same industry or sector, or the financial markets overall.
Common stock generally is subordinate to preferred stock upon the liquidation or
bankruptcy of the issuing company;
|
| |
26 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
Preferred stocks,
including convertible preferred stocks. Preferred stocks,
including convertible preferred stocks, are subject to issuer-specific risks and
are sensitive to movements in interest rates. Preferred stocks and convertible
preferred stocks may be less liquid than common stocks and, unlike common
stocks, participation in the growth of an issuer may be limited. Distributions
on preferred stocks generally are payable at the discretion of an issuer and
after required payments to bond holders. Preferred stocks may also be subject to
credit risk, which is the risk that an issuer may be unable or unwilling to meet
its financial obligations;
Depositary
receipts. Investing in
depositary receipts entails many of the same risks as direct investment in
foreign securities, including, but not limited to, currency exchange rate
fluctuations, political and financial instability in the home country of a
particular depositary receipt, less liquidity and more
volatility;
Rights and
warrants. Rights and
warrants do not carry dividend or voting rights with respect to the underlying
securities or any rights in the assets of the issuer, and a right or a warrant
ceases to have value if it is not exercised prior to its expiration
date;
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant limitations
on investor rights and recourse; (8) use of unfamiliar corporate
organizational structures; (9) unavailable or unreliable public
information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government oversight. Foreign security risk may also apply to
ADRs, GDRs and
EDRs; |
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and
the
|
| |
| |
rjinvestmentmanagement.com | 27 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
possibility
of changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Currency risk is the risk related to the
fund’s exposure to foreign currencies through its investments. Foreign
currencies may fluctuate significantly over short periods of time, may be
affected unpredictably by intervention, or the failure to intervene, of
the U.S. or foreign governments or central banks, and may be affected by
currency controls or political developments in the U.S. or abroad. Foreign
currencies may also decline in value relative to the U.S. dollar and other
currencies and thereby affect the fund’s
investments; |
• |
|
Emerging markets are generally smaller,
less developed, less liquid and more volatile than the securities markets
of the U.S. and other foreign developed markets. There are also risks of:
greater political uncertainties; an economy’s dependence on revenues from
particular commodities or on international aid or development assistance;
currency transfer restrictions; a limited number of potential buyers for
such securities; delays and disruptions in securities settlement
procedures; less stringent, or a lack of, accounting, auditing, financial
reporting and recordkeeping requirements or standards; and significant
limitations on investor rights and recourse. The governments of emerging
market countries may also be more unstable. There may be less publicly
available information about issuers in emerging markets. When investing in
emerging markets, the risks of investing in foreign securities are
heightened; |
• |
|
Geographic concentration risk is the risk
that from time to time, based on market or economic conditions, the fund
may invest a significant portion of its assets in the securities of
issuers located in, or with significant economic ties to, a single country
or geographic region, which could increase the risk that economic, market,
political, business, regulatory, diplomatic, social and environmental
conditions in that particular country or geographic region may have a
significant impact on the fund’s performance. Investing in such a manner
could cause the fund’s performance to be more volatile than the
performance of more geographically diverse funds. A decline in the
economies or financial markets of one country or region may adversely
affect the economies or financial markets of
another. |
Japan investment risk is the risk that the
Japanese economy may be subject to economic, political and social instability,
which could have an adverse effect on the Japanese securities held by the fund.
The Japanese economy is heavily dependent upon international trade, and may be
adversely affected by global competition, trade tariffs, other government
interventions and protectionist measures, the strength of the yen, excessive
regulation, changes in international trade agreements, the economic conditions
of its trading partners, competition from emerging economies, the performance of
the global economy, and regional and global conflicts. Political tensions
between Japan and its trading partners could adversely affect the economy,
especially the export sector, and destabilize the region as a whole. The
domestic Japanese economy faces several concerns, including large government
deficits, a declining domestic population and low birth rate, workforce
shortages, and inflation. The Japanese government’s fiscal and monetary policies
may have negative impacts on the Japanese economy. Natural disasters such as
earthquakes, volcanic eruptions, typhoons or tsunamis, could occur in Japan and
surrounding areas and may have a significant impact on the business operations
of Japanese companies in the affected regions and Japan’s economy. These and
other factors could have a negative impact on the fund’s performance and
increase the volatility of an investment in the
fund;
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment
style; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests. The fund and
its shareholders will indirectly bear the fund’s proportionate share of
the fees and expenses paid by shareholders of the other investment
company, in addition to the fees and expenses fund shareholders directly
bear in connection with the fund’s own operations. ETF shares may trade at
a premium or discount to their net asset value. An ETF that tracks an
index may not precisely replicate the returns of its benchmark
index; |
• |
|
Large cap company risk arises because
large-cap companies may be less responsive to competitive challenges and
opportunities, and may be unable to attain high growth rates, relative to
smaller companies; |
|
| |
28 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
• |
|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
• |
|
Market timing risk arises because certain
types of securities in which the fund invests, including foreign
securities, could cause the fund to be at greater risk of market timing
activities by fund shareholders. Such activities can dilute the fund’s
NAV, increase the fund’s expenses and interfere with the fund’s ability to
execute efficient investment
strategies; |
• |
|
Micro-capitalization company risk arises
because micro-cap companies may have less predictable earnings and
revenues; experience significant losses; lack an operating history,
product lines, or financial resources; have volatile share prices and less
liquid markets; and trade less frequently than larger, more established
companies; |
• |
|
Mid-cap company risk arises because
mid-cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
• |
|
Quantitative strategy risk is the risk
that the success of the fund’s investment strategy may depend in part on
the effectiveness of the subadviser’s quantitative tools for screening
securities. These strategies may incorporate factors that may not be
predictive of a security’s value. The subadviser’s stock selection can be
adversely affected if it relies on insufficient, erroneous or outdated
data or flawed models or computer
systems; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these
risks. |
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During performance period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
18.00% |
|
December 31, 2022 |
|
|
| |
Worst Quarter |
|
| |
(23.50)% |
|
March 31,
2020 |
|
| |
| |
rjinvestmentmanagement.com | 29 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
|
|
|
|
|
|
|
|
|
| |
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
Fund return (after
deduction of sales charges and expenses) |
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10-yr |
|
|
|
|
| |
Class I
– Before Taxes |
|
2/28/13 |
|
19.99% |
|
8.77% |
|
|
4.75% |
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
19.45% |
|
8.38% |
|
|
4.18% |
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
12.70% |
|
6.96% |
|
|
3.65% |
|
|
|
|
| |
Class A
– Before Taxes |
|
2/28/13 |
|
13.93% |
|
7.39% |
|
|
3.87% |
|
|
|
|
| |
Class C
– Before Taxes |
|
2/28/13 |
|
18.73% |
|
7.63% |
|
|
3.59% |
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
2/28/13 |
|
20.04% |
|
8.82% |
|
|
4.82% |
|
|
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10-yr |
|
|
|
|
| |
MSCI ACWI ex-US Index (1) |
|
| |
15.62% |
|
7.08% |
|
|
3.83% |
|
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | ClariVest Asset Management LLC
(“ClariVest”) serves as the subadviser to the fund.
Portfolio Managers | David R. Vaughn, CFA®, Alex Turner, CFA®, and Gashi Zengeni, CFA®, are Portfolio Managers of
the fund and are jointly and primarily responsible for the day-to-day management
of the fund – Mr. Vaughn since its inception, Mr. Turner since 2015, and Ms.
Zengeni since April 2021. Ms. Zengeni served as Assistant Portfolio Manager
of the fund from April 2020 to March 2021.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
|
| |
30 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CLARIVEST INTERNATIONAL STOCK
FUND | 4.26.2024
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
| |
rjinvestmentmanagement.com | 31 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
Investment objective |
The Carillon Eagle Growth & Income Fund
(“Growth & Income Fund” or the “fund”) primarily seeks long-term
capital appreciation and, secondarily, seeks current
income.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Growth & Income Fund.
You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.45% |
|
0.45% |
|
0.45% |
|
0.45% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.28% |
|
0.26% |
|
0.27% |
|
0.19% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
0.98% |
|
1.71% |
|
0.72% |
|
0.64% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same. Your costs would be the same whether you
sold your shares or continued to hold them at the end of the period. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$570 |
|
$772 |
|
$991 |
|
$1,619 |
Class C |
|
$274 |
|
$539 |
|
$928 |
|
$2,019 |
Class I |
|
$74 |
|
$230 |
|
$401 |
|
$894 |
Class R‑6 |
|
$65 |
|
$205 |
|
$357 |
|
$798 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 40% of the average value of its
portfolio.
Principal investment strategies
| During normal market
conditions, the Growth & Income Fund seeks to achieve its objective by
investing primarily in domestic equity securities (predominantly common stocks)
that the portfolio managers believe are high-quality, financially strong
companies that pay above-market dividends, have cash resources (i.e. free cash
flow) and a history of raising dividends. The portfolio managers select
companies based in part upon their belief that those companies have the
following characteristics: (1) yield or dividend growth at or above the
S&P 500 Index; (2) potential for growth; and (3) stock price below
its estimated intrinsic value. The fund generally sells securities when their
price appreciations reach or exceed sustainable levels, a
|
| |
32 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
company’s
fundamentals deteriorate, or a more attractive investment opportunity develops.
Equity securities purchased by the fund typically include common stocks,
convertible securities, preferred stocks, and real estate investment trusts
(“REITs”). In addition, the fund generally invests in mid‑and
large-capitalization companies that are diversified across different industries
and sectors. Although the portfolio managers generally do not emphasize
investment in any particular investment sector or industry, the fund may invest
a significant portion of its assets in the securities of companies in the
information technology and health care sectors at any given time. From time to
time, the fund’s portfolio may include the stocks of fewer companies than other
diversified funds.
The
fund also may own a variety of other securities that, in the opinion of the
fund’s portfolio managers, offer prospects for meeting the fund’s investment
goals. These securities may include equity securities of companies economically
tied to countries outside of the U.S.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and
decrease. An investment in the fund is not a
deposit with a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Investments in the fund are subject to the following primary risks. The most
significant risks of investing in the fund as of the date of this Prospectus are
listed first below, followed by the remaining risks in alphabetical order. Each
risk summarized below is considered a “principal risk” of investing in the fund,
regardless of the order in which it appears. Different risks may be more
significant at different times depending on market conditions or other
factors.
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Dividend-Paying
Stocks. Securities of companies that have historically paid a high
dividend yield may reduce or discontinue their dividends, reducing the yield of
the fund. Low priced securities in the fund may be more susceptible to these
risks. Past dividend payments are not a guarantee of future dividend payments.
Also, the market return of high dividend yield securities, in certain market
conditions, may perform worse than other investment strategies or the overall
stock market;
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing
company;
Preferred
stock. Preferred stocks are subject to issuer-specific risks and
are sensitive to movements in interest rates. Preferred stocks may be less
liquid than common stocks and, unlike common stocks, participation in the growth
of an issuer may be limited. Distributions on preferred stocks generally are
payable at the discretion of an issuer and after required payments to bond
holders. Preferred stocks may also be subject to credit risk, which is the risk
that an issuer may be unable or unwilling to meet its financial
obligations;
Convertible
securities. Convertible securities are subject to the risk that
the credit standing of the issuer may have an effect on the convertible
securities’ investment value. Convertible securities also are sensitive to
movements in interest rates. Generally, a convertible security is subject to the
market risks of stocks when the price of the underlying stock is high relative
to the conversion price, and is subject to the market risks of debt securities
when the underlying stock’s price is low relative to the conversion
price;
REITs.
Investments in REITs are subject to the risks associated with investing in the
real estate industry, such as adverse developments affecting the real estate
industry and real property values, and are dependent upon the skills of their
managers. REITs may not be diversified geographically or by property or tenant
type. REITs typically incur fees that are separate from those incurred by the
fund, meaning the fund, as a shareholder, will indirectly bear a proportionate
share of a REIT’s operating expenses;
• |
|
Focused holdings risk is the risk of the
fund holding a core portfolio of securities of fewer companies than other
funds, which means that the increase or decrease of the value of a single
investment may have a greater impact on the fund’s NAV and total return
when compared to other diversified
funds; |
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant limitations
on investor rights and recourse; (8) use of unfamiliar corporate
organizational structures; (9) unavailable or unreliable public
information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment
style; |
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
rise, perhaps significantly and/or rapidly, potentially resulting in
substantial losses to a |
|
| |
| |
rjinvestmentmanagement.com | 33 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
|
fund.
It is difficult to accurately predict the pace at which interest rates
might increase or decrease, or the timing, frequency, or magnitude of such
changes. The effect of increasing interest rates is more pronounced for
any intermediate-or longer-term fixed income obligations owned by the
fund. For example, if a bond has a duration of eight years, a 1% increase
in interest rates could be expected to result in an 8% decrease in the
value of the bond. Interest rates may rise, perhaps significantly and/ or
rapidly, potentially resulting in substantial losses to the fund due to,
among other factors, a decline in the value of the fund’s fixed income
securities, heightened volatility in the fixed income markets and the
reduced liquidity of certain fixed income investments. Conversely, during
periods of very low or negative interest rates, the fund may be unable to
maintain positive returns or pay dividends to fund
shareholders; |
• |
|
Large cap company risk arises because
large-cap companies may be less responsive to competitive challenges and
opportunities, and may be unable to attain high growth rates, relative to
smaller companies; |
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
|
| |
34 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or
lower. |
Health care sector risk is the risk that the
health care sector may be affected by government regulations and government
health care programs, restrictions on government reimbursement for medical
expenses, increases or decreases in the cost of medical products and services
and product liability claims, among other factors. Many health care products and
services may be subject to regulatory approvals. The process of obtaining such
approvals may be long and costly, and delays in or failure to receive such
approvals may negatively impact the business of such companies. Additional or
more stringent laws and regulations enacted in the future could have a material
adverse effect on such companies in the health care sector. Issuers in the
health care sector include issuers with their principal activities in the
biotechnology industry, which has additional risks. A biotechnology company’s
valuation can often be based largely on the potential or actual performance of a
limited number of products and, accordingly, can be significantly affected if
one of its products proves unsafe, ineffective or unprofitable. Biotechnology
companies are subject to regulation by, and the restrictions of, federal
agencies, state and local governments, and non-U.S. regulatory
authorities;
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or personnel. Failure
to introduce new products, develop and maintain a loyal customer base or achieve
general market acceptance for their products could have a material adverse
effect on a company’s business. Companies in the information technology sector
also may be subject to increased government scrutiny or adverse government
regulatory action. Additionally, companies in the information technology sector
are heavily dependent on intellectual property and the loss of patent, copyright
and trademark protections may adversely affect the profitability of these
companies. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market
prices;
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment
style. |
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
| |
| |
rjinvestmentmanagement.com | 35 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
|
|
|
|
|
|
|
| |
During 10 year period (Class
I shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
13.11% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(21.15)% |
|
March 31,
2020 |
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
| |
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
|
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
| |
Class I
– Before Taxes |
|
3/18/09 |
|
9.58% |
|
10.53% |
|
8.90% |
|
|
|
| |
After
Taxes on Distributions |
|
|
|
6.40% |
|
8.43% |
|
7.21% |
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
7.89% |
|
8.17% |
|
6.96% |
|
|
|
| |
Class A
– Before Taxes |
|
12/15/86 |
|
4.05% |
|
9.16% |
|
8.09% |
|
|
|
| |
Class C
– Before Taxes |
|
4/3/95 |
|
8.46% |
|
9.42% |
|
7.80% |
|
|
|
| |
Class R‑6
– Before Taxes |
|
8/15/11 |
|
9.69% |
|
10.55% |
|
8.94% |
|
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
| |
S&P 500® Index |
|
| |
26.29% |
|
15.69% |
|
12.03% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser’s | Eagle Asset Management, Inc.
serves as the subadviser to the fund.
Portfolio Managers | David Blount, CFA®, Brad Erwin, CFA®, and Jeffrey D. Bilsky are
Portfolio Managers of the fund and are jointly and primarily responsible for the
day-to-day management of the fund. Mr. Blount has served as the fund’s Portfolio
Manager since 2011. Mr. Erwin has served as the fund’s Portfolio Manager since
July 2019. Mr. Bilsky has served as the fund’s Portfolio Manager since August
2023. Mr. Bilsky is a Portfolio Co‑Manager at Chartwell Investment Partners,
LLC. He is also an employee of Eagle Asset Management, Inc. (“Eagle”) and serves
as a Portfolio Manager of the fund in his capacity as an employee of Eagle.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
|
| |
36 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE GROWTH & INCOME
FUND | 4.26.2024
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
| |
rjinvestmentmanagement.com | 37 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE MID CAP GROWTH
FUND | 4.26.2024
Investment objective |
The Carillon Eagle Mid Cap Growth Fund (“Mid Cap Growth Fund” or
the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Mid Cap Growth Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your
investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.51% |
|
0.51% |
|
0.51% |
|
0.51% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.29% |
|
0.22% |
|
0.22% |
|
0.13% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.05% |
|
1.73% |
|
0.73% |
|
0.64% |
(a)If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same. Your costs would be the same whether you
sold your shares or continued to hold them at the end of the period. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$577 |
|
$793 |
|
$1,027 |
|
$1,697 |
Class C |
|
$276 |
|
$545 |
|
$939 |
|
$2,041 |
Class I |
|
$75 |
|
$233 |
|
$406 |
|
$906 |
Class R‑6 |
|
$65 |
|
$205 |
|
$357 |
|
$798 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 49% of the average value of its
portfolio.
Principal investment strategies
| During normal market
conditions, the Mid Cap Growth Fund seeks to achieve its objective by investing
at least 80% of its net assets (plus the amount of any borrowings for investment
purposes) in the equity securities of mid‑capitalization companies. The fund’s
portfolio managers consider mid‑capitalization companies to be those companies
that, at the time of initial purchase, have capitalizations greater than
$1 billion and equal to or less than the largest company in the Russell
Midcap® Growth Index
during the most recent 12‑month period (approximately $73.3 billion during
the 12‑month period ended December 31, 2023). The fund is not required to
sell equity securities whose market values appreciate or depreciate outside this
market capitalization range.
|
| |
38 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE MID CAP GROWTH
FUND | 4.26.2024
The
fund will invest primarily in the equity securities of companies that the
portfolio managers believe have the potential for above-average earnings or
sales growth, reasonable valuations and acceptable debt levels. Such stocks can
typically have high price‑to‑earnings ratios. Equity securities include common
and preferred stock, warrants or rights exercisable into common or preferred
stock and high-quality convertible securities. Although the portfolio managers
generally do not emphasize investment in any particular investment sector or
industry, the fund may invest a significant portion of its assets in the
securities of companies in the information technology, health care and
industrials sectors at any given time. The fund will generally sell when the
stock has met the portfolio managers’ target price, the investment is no longer
valid, a better investment opportunity has arisen or if the investment reaches a
value more than 5% of the fund’s net assets. At times, the fund may hold
securities of small-capitalization
companies.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment
style; |
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these
risks; |
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Common
stocks. The value of a
company’s common stock may fall as a result of factors affecting the company,
companies in the same industry or sector, or the financial markets overall.
Common stock generally is subordinate to preferred stock upon the liquidation or
bankruptcy of the issuing company;
Preferred
stock. Preferred stocks are
subject to issuer-specific risks and are sensitive to movements in interest
rates. Preferred stocks may be less liquid than common stocks and, unlike common
stocks, participation in the growth of an issuer may be limited. Distributions
on preferred stocks generally are payable at the discretion of an issuer and
after required payments to bond holders. Preferred stocks may also be subject to
credit risk, which is the risk that an issuer may be unable or unwilling to meet
its financial obligations;
Convertible
securities. Convertible
securities are subject to the risk that the credit standing of the issuer may
have an effect on the convertible securities’ investment value. Convertible
securities also are sensitive to movements in interest rates. Generally, a
convertible security is subject to the market risks of stocks when the price of
the underlying stock is high relative to the conversion price, and is subject to
the market risks of debt securities when the underlying stock’s price is low
relative to the conversion price;
Rights and
warrants. Rights and
warrants do not carry dividend or voting rights with respect to the underlying
securities or any rights in the assets of the issuer, and a right or a warrant
ceases to have value if it is not exercised prior to its expiration
date;
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate
earnings, |
|
| |
| |
rjinvestmentmanagement.com | 39 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE MID CAP GROWTH
FUND | 4.26.2024
|
public
perceptions concerning these developments or adverse investment sentiment
generally. Changes in the financial condition of a single issuer, industry
or market segment also can impact the market as a whole. In addition,
adverse market events may lead to increased redemptions, which could cause
the fund to experience a loss when selling securities to meet redemption
requests by shareholders. Adverse market conditions may be prolonged and
may not have the same impact on all types of securities. Conversely, it is
also possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or
lower. |
Health care sector risk is the risk that the
health care sector may be affected by government regulations and government
health care programs, restrictions on government reimbursement for medical
expenses, increases or decreases in the cost of medical products and services
and product liability claims, among other factors. Many health care products and
services may be subject to regulatory approvals. The process of obtaining such
approvals may be long and costly, and delays in or failure to receive such
approvals may negatively impact the business of such companies. Additional or
more stringent laws and regulations enacted in the future could have a material
adverse effect on such companies in the health care sector. Issuers in the
health care sector include issuers with their principal activities in the
biotechnology industry, which has additional risks. A biotechnology company’s
valuation can often be based largely on the potential or actual performance of a
limited number of products and, accordingly, can be significantly affected if
one of its products proves unsafe, ineffective or unprofitable. Biotechnology
companies are subject to regulation by, and the restrictions of, federal
agencies, state and local governments, and non-U.S. regulatory
authorities;
|
| |
40 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE MID CAP GROWTH
FUND | 4.26.2024
Industrials sector risk is the risk that
companies in the industrials sector may be adversely affected by general
economic trends, including employment, economic growth, and interest rates,
changes in consumer sentiment and spending, commodity prices, legislation,
government regulation and spending, import controls, and worldwide competition.
In addition, companies in the industrials sector may be adversely affected by
liability for environmental damages, product liability claims and exchange
rates. The products of companies in the industrials sector also may face product
obsolescence due to rapid technological developments and frequent new product
introduction. The industrials sector includes companies engaged in the
construction, engineering, machinery, energy services, transportation,
professional services, and aerospace and defense
industries;
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or personnel. Failure
to introduce new products, develop and maintain a loyal customer base or achieve
general market acceptance for their products could have a material adverse
effect on a company’s business. Companies in the information technology sector
also may be subject to increased government scrutiny or adverse government
regulatory action. Additionally, companies in the information technology sector
are heavily dependent on intellectual property and the loss of patent, copyright
and trademark protections may adversely affect the profitability of these
companies. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market prices;
and
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially. |
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
32.86% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(20.41)% |
|
March 31,
2020 |
|
| |
| |
rjinvestmentmanagement.com | 41 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE MID CAP GROWTH
FUND | 4.26.2024
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after
deduction of sales charges and expenses) |
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
| |
Class I
–Before Taxes |
|
6/21/06 |
|
20.04% |
|
13.54% |
|
10.80% |
|
|
|
| |
After
Taxes on Distributions |
|
|
|
17.02% |
|
12.16% |
|
9.65% |
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
13.99% |
|
10.87% |
|
8.75% |
|
|
|
| |
Class A
– Before Taxes |
|
8/20/98 |
|
13.94% |
|
12.08% |
|
9.91% |
|
|
|
| |
Class C
– Before Taxes |
|
8/20/98 |
|
18.82% |
|
12.41% |
|
9.68% |
|
|
|
| |
Class R‑6
– Before Taxes |
|
8/15/11 |
|
20.12% |
|
13.64% |
|
10.90% |
| |
Index (reflects no deduction
for fees, expenses or taxes) |
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
| |
Russell Midcap® Growth Index |
|
|
|
25.87% |
|
13.81% |
|
10.57% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Eagle Asset Management, Inc.
serves as the subadviser to the fund.
Portfolio Managers | Eric Mintz, CFA®, Dr. Christopher Sassouni,
D.M.D. and David Cavanaugh are Portfolio Managers of the fund and are jointly
and primarily responsible for all aspects of the fund’s management. Mr. Mintz
has managed the fund since 2011, Dr. Sassouni has managed the fund since 2020
after serving as Assistant Portfolio Manager of the fund since 2006, and Mr.
Cavanaugh has managed the fund since June 2022 after serving as a Senior
Research Analyst of the fund from 2017 to June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
42 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE SMALL CAP GROWTH
FUND | 4.26.2024
Investment objective |
The Carillon Eagle Small Cap Growth Fund (“Small Cap Growth Fund”
or the “fund”) seeks long-term capital appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Small Cap Growth Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class
C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your
investment): |
|
|
|
| |
|
|
Class A |
|
Class
C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.59% |
|
0.59% |
|
0.59% |
|
0.59% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.34% |
|
0.29% |
|
0.30% |
|
0.19% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.18% |
|
1.88% |
|
0.89% |
|
0.78% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same. Your costs would be the same whether you
sold your shares or continued to hold them at the end of the period. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$590 |
|
$832 |
|
1,093 |
|
$1,839 |
Class C |
|
$291 |
|
$591 |
|
$1,016 |
|
$2,201 |
Class I |
|
$91 |
|
$284 |
|
$493 |
|
$1,096 |
Class R‑6 |
|
$80 |
|
$249 |
|
$433 |
|
$966 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 39% of the average value of its
portfolio.
Principal investment strategies
| During normal market
conditions, the Small Cap Growth Fund seeks to achieve its objective by
investing at least 80% of its net assets (plus the amount of any borrowings for
investment purposes) in the stocks of small-capitalization companies. The fund’s
portfolio managers consider small-capitalization companies to be those companies
that, at the time of initial purchase, have a market capitalization equal to or
less than the largest company in the Russell 2000® Growth Index during the most
recent 12‑month period (approximately $17.4 billion during the 12‑month
period ended December 31, 2023). The fund is not required to sell equity
securities whose market values appreciate or depreciate outside this market
capitalization range.
|
| |
| |
rjinvestmentmanagement.com | 43 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE SMALL CAP GROWTH
FUND | 4.26.2024
When making their
investment decisions, the portfolio managers generally focus on investing in the
dividend paying equity securities, generally common stock, of companies that the
portfolio managers believe have accelerating earnings growth rates, reasonable
valuations (typically with a price‑to‑earnings ratio of no more than the
earnings growth rate), strong management that participates in the ownership of
the company, reasonable debt levels and/or a high or expanding return on equity.
Although the portfolio managers generally do not emphasize investment in any
particular investment sector or industry, the fund may invest a significant
portion of its assets in the securities of companies in the health care,
information technology and industrials sectors at any given time. The fund may
also purchase, or obtain exposure to, securities in initial public offerings
(“IPOs”). The fund will sell securities when they no longer meet the portfolio
managers’ investment criteria. The fund also may hold securities of
mid‑capitalization companies.
The fund may lend its securities
to broker-dealers and other financial institutions to earn additional
income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these risks;
|
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment style;
|
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional risks:
|
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing company;
Dividend-Paying
Stocks. Securities of companies that have historically paid a high
dividend yield may reduce or discontinue their dividends, reducing the yield of
the fund. Low priced securities in the fund may be more susceptible to these
risks. Past dividend payments are not a guarantee of future dividend payments.
Also, the market return of high dividend yield securities, in certain market
conditions, may perform worse than other investment strategies or the overall
stock market;
• |
|
Initial public offerings risk arises
because the market value of shares sold in an IPO may fluctuate
considerably due to factors such as the absence of a prior public market,
unseasoned trading, the small number of shares available for trading and
limited information about the issuer;
|
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations.
|
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
|
| |
44 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE SMALL CAP GROWTH
FUND | 4.26.2024
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established companies;
|
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or lower.
|
Health care sector risk is the risk that the
health care sector may be affected by government regulations and government
health care programs, restrictions on government reimbursement for medical
expenses, increases or decreases in the cost of medical products and services
and product liability claims, among other factors. Many health care products and
services may be subject to regulatory approvals. The process of obtaining such
approvals may be long and costly, and delays in or failure to receive such
approvals may negatively impact the business of such companies. Additional or
more stringent laws and regulations enacted in the future could have a material
adverse effect on such companies in the health care sector. Issuers in the
health care sector include issuers with their principal activities in the
biotechnology industry, which has additional risks. A biotechnology company’s
valuation can often be based largely on the potential or actual performance of a
limited number of products and, accordingly, can be significantly affected if
one or more of its products becomes obsolete or proves unsafe, ineffective or
unprofitable. Biotechnology companies are subject to regulation by, and the
restrictions of, federal agencies, state and local governments, and non-U.S.
regulatory authorities;
Industrials sector risk is the risk that
companies in the industrials sector may be adversely affected by general
economic trends, including employment, economic growth, and interest rates,
changes in consumer sentiment and spending, commodity prices, legislation,
government regulation and spending, import controls, and worldwide competition.
In addition, companies in the industrials sector may be adversely affected by
liability for environmental damages, product liability claims and exchange
rates. The products of companies in the industrials sector also may face product
obsolescence due to rapid technological developments and frequent new product
introduction. The industrials sector includes companies engaged in the
construction, engineering, machinery, energy services, transportation,
professional services, and aerospace and defense industries;
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of
|
| |
| |
rjinvestmentmanagement.com | 45 |
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE SMALL CAP GROWTH
FUND | 4.26.2024
qualified
personnel. These companies may be smaller or newer and may have limited product
lines, markets, financial resources or personnel. Failure to introduce new
products, develop and maintain a loyal customer base or achieve general market
acceptance for their products could have a material adverse effect on a
company’s business. Companies in the information technology sector also may be
subject to increased government scrutiny or adverse government regulatory
action. Additionally, companies in the information technology sector are heavily
dependent on intellectual property and the loss of patent, copyright and
trademark protections may adversely affect the profitability of these companies.
The market prices of information technology-related securities tend to exhibit a
greater degree of interest rate risk and market risk and may experience sharper
price fluctuations than other types of securities. These securities may fall in
and out of favor with investors rapidly, which may cause sudden selling and
dramatically lower market prices; and
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially.
|
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
Each of the fund’s share classes is invested in the same portfolio of
securities, and the annual returns would have differed only to the extent that
the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
28.50% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(23.85)% |
|
March 31,
2020 |
|
|
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
|
| |
Class I
– Before Taxes |
|
6/27/06 |
|
14.24% |
|
8.02% |
|
|
6.54% |
|
|
|
|
| |
After Taxes on Distributions |
|
|
|
11.90% |
|
3.85% |
|
|
3.28% |
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
10.08% |
|
6.41% |
|
|
4.96% |
|
|
|
|
| |
Class A
– Before Taxes |
|
5/7/93 |
|
8.51% |
|
6.66% |
|
|
5.70% |
|
|
|
|
| |
Class C
– Before Taxes |
|
4/3/95 |
|
13.01% |
|
6.92% |
|
|
5.45% |
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
8/15/11 |
|
14.36% |
|
8.14% |
|
|
6.67% |
|
|
| |
46 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON EAGLE SMALL CAP GROWTH
FUND | 4.26.2024
|
|
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
|
|
| |
Russell 2000® Growth Index |
|
| |
18.66% |
|
9.22% |
|
7.16% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Eagle Asset Management, Inc.
serves as the subadviser to the fund.
Portfolio Managers | Eric Mintz, CFA®, Dr. Christopher Sassouni,
D.M.D. and David Cavanaugh are Portfolio Managers of the fund and are jointly
and primarily responsible for all aspects of the fund’s management. Mr. Mintz
has managed the fund since 2011, Dr. Sassouni has managed the fund since 2020
after serving as Assistant Portfolio Manager of the fund since 2015, and Mr.
Cavanaugh has managed the fund since June 2022 after serving as a Senior
Research Analyst of the fund from 2017 to June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
| |
rjinvestmentmanagement.com | 47 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
Investment objective |
The Carillon Scout Mid Cap Fund (“Mid Cap Fund” or the “fund”)
seeks long-term growth of capital.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Mid Cap Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.73% |
|
0.73% |
|
0.73% |
|
0.73% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.27% |
|
0.25% |
|
0.25% |
|
0.14% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.25% |
|
1.98% |
|
0.98% |
|
0.87% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(b) |
|
0.00% |
|
0.00% |
|
(0.03)% |
|
(0.02)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.25% |
|
1.98% |
|
0.95% |
|
0.85% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of a class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class I – 0.95% and Class R-6 – 0.85%. This
expense limitation excludes interest, taxes, brokerage commissions, costs
relating to investments in other investment companies (acquired fund fees and
expenses), dividends, and extraordinary expenses. The contractual fee waivers
can be changed only with the approval of a majority of the fund’s Board of
Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same except that the example reflects the fee
waiver/expense reimbursement arrangement for the Class I and Class R-6 shares
through April 30, 2025. Your costs would be the same whether you sold your
shares or continued to hold them at the end of the period. Although your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$596 |
|
$853 |
|
$1,129 |
|
$1,915 |
Class C |
|
$301 |
|
$621 |
|
$1,068 |
|
$2,306 |
Class I |
|
$97 |
|
$309 |
|
$539 |
|
$1,199 |
Class R‑6 |
|
$87 |
|
$276 |
|
$480 |
|
$1,071 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 112% of the average value of its
portfolio.
|
| |
48 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
Principal investment strategies
| The fund pursues its
objective by investing primarily in common stocks of mid-capitalization
companies. Under normal circumstances, at least 80% of the fund’s net assets
will be invested in mid cap equity securities. The fund’s portfolio managers
consider mid‑capitalization companies to be those companies that, at the time of
initial purchase, have market capitalizations greater than $1 billion and
equal to or less than the largest company in the Russell Midcap® Index during the most
recent 12‑month period (approximately $73.3 billion during the 12‑month
period ended December 31, 2023). The fund is not required to sell equity
securities whose market values appreciate or depreciate outside this market
capitalization range. The fund normally maintains a portfolio of investments
diversified across companies and economic sectors.
The equity securities
in which the fund invests include common stocks, depositary receipts, preferred
stocks, convertible securities, warrants and other rights, and real estate
investment trusts (“REITs”). The portfolio management team seeks to invest in
the securities of growth and value companies that are expected to benefit from
macroeconomic or company-specific factors, and that are attractively priced
relative to their fundamentals. In making investment decisions, the portfolio
management team may consider fundamental factors such as cash flow, financial
strength, profitability, statistical valuation measures, potential or actual
catalysts that could move the share price, accounting practices, management
quality, risk factors such as litigation, the estimated valuation of a company
considering its growth potential, general economic and industry conditions, and
additional information as appropriate. The fund may engage in frequent and
active trading.
The fund will invest
primarily in securities of U.S. companies, but may invest up to 20% of the
portfolio in foreign companies, including those located in developing countries
or emerging markets, American Depositary Receipts (“ADRs”) or Global Depositary
Receipts (“GDRs”) (collectively, “depositary receipts”). At times, the fund may
hold securities of small capitalization companies.
The fund intends to
hold some cash, short-term debt obligations, government securities, money market
funds or other high-quality investments for reserves to cover redemptions and
unanticipated expenses. There may be times, however, when the fund attempts to
respond to adverse market, economic, political or other conditions by investing
a higher percentage of its assets in cash or in those types of money market
investments for temporary defensive purposes. During those times, the fund may
not be able to pursue its investment objective or follow its principal
investment strategies and, instead, will focus on preserving your
investment.
The fund may lend its securities
to broker-dealers and other financial institutions to earn additional
income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional risks:
|
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing company;
Preferred stock. Preferred stocks are
subject to issuer-specific risks and are sensitive to movements in interest
rates. Preferred stocks may be less liquid than common stocks and, unlike common
stocks, participation in the growth of an issuer may be limited. Distributions
on preferred stocks generally are payable at the discretion of an issuer and
after required payments to bond holders. Preferred stocks may also be subject to
credit risk, which is the risk that an issuer may be unable or unwilling to meet
its financial obligations;
Convertible securities. Convertible
securities are subject to the risk that the credit standing of the issuer may
have an effect on the convertible securities’ investment value. Convertible
securities also are sensitive to movements in interest rates. Generally, a
convertible security is subject to the market risks of stocks when the price of
the underlying stock is high relative to the conversion price, and is subject to
the market risks of debt securities when the underlying stock’s price is low
relative to the conversion price;
Depositary receipts. Investing in
depositary receipts entails many of the same risks as direct investment in
foreign securities, including, but not limited to, currency exchange rate
fluctuations, political and financial instability in the home country of a
particular depositary receipt, less liquidity and more volatility;
REITs. Investments in REITs are subject
to the risks associated with investing in the real estate industry, such as
adverse developments affecting the real estate industry and real property
values, and are dependent upon the skills of their managers. REITs may not be
diversified geographically or by property or tenant type. REITs typically incur
fees that are separate from those incurred by the fund, meaning the fund, as a
shareholder, will indirectly bear a proportionate share of a REIT’s operating
expenses;
Rights and warrants. Rights and
warrants do not carry dividend or voting rights with respect to the underlying
securities or any rights in the assets of the issuer, and a right or a warrant
ceases to have value if it is not exercised prior to its expiration date;
|
| |
| |
rjinvestmentmanagement.com | 49 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established companies;
|
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations.
|
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
|
| |
50 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
• |
|
Currency risk is the risk related to the
fund’s exposure to foreign currencies through its investments. Foreign
currencies may fluctuate significantly over short periods of time, may be
affected unpredictably by intervention, or the failure to intervene, of
the U.S. or foreign governments or central banks, and may be affected by
currency controls or political developments in the U.S. or abroad. Foreign
currencies may also decline in value relative to the U.S. dollar and other
currencies and thereby affect the fund’s investments;
|
• |
|
Emerging markets are generally smaller,
less developed, less liquid and more volatile than the securities markets
of the U.S. and other foreign developed markets. There are also risks of:
greater political uncertainties; an economy’s dependence on revenues from
particular commodities or on international aid or development assistance;
currency transfer restrictions; a limited number of potential buyers for
such securities; delays and disruptions in securities settlement
procedures; less stringent, or a lack of, accounting, auditing, financial
reporting and recordkeeping requirements or standards; and significant
limitations on investor rights and recourse. The governments of emerging
market countries may also be more unstable. There may be less publicly
available information about issuers in emerging markets. When investing in
emerging markets, the risks of investing in foreign securities are
heightened; |
• |
|
Foreign
securities risks, which are potential risks not associated with
U.S. investments, include, but are not limited to: (1) currency
exchange rate fluctuations; (2) political and financial instability; (3)
less liquidity; (4) lack of uniform accounting, auditing and financial
reporting standards; (5) increased volatility; (6) less government
regulation and supervision of foreign stock exchanges, brokers and listed
companies; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign
markets. The unavailability and/or unreliability of public
information available may impede the fund’s ability to accurately evaluate
foreign securities. Moreover, it may be difficult to enforce contractual
obligations or invoke judicial or arbitration processes against non‑U.S.
companies and non‑U.S. persons in foreign jurisdictions. The risks
associated with investments in governmental or quasi-governmental entities
of a foreign country are heightened by the potential for unexpected
governmental change and inadequate government oversight. Foreign security
risk may also apply to ADRs and
GDRs; |
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment style;
|
• |
|
Investing in other investment companies,
including money market funds, carries with it the risk that, by
investing in another investment company, the fund will be exposed to the
risks of the types of investments in which the investment company invests.
The fund and its shareholders will indirectly bear the fund’s
proportionate share of the fees and expenses paid by shareholders of the
other investment company, in addition to the fees and expenses fund
shareholders directly bear in connection with the fund’s own operations;
|
• |
|
Market timing risk arises because certain
types of securities in which the fund invests, including small‑cap and
foreign securities, could cause the fund to be at greater risk of market
timing activities by fund shareholders. Such activities can dilute the
fund’s NAV, increase the fund’s expenses and interfere with the fund’s
ability to execute efficient investment strategies;
|
• |
|
Portfolio turnover risk is the risk that
performance may be adversely affected by the high rate of portfolio
turnover that can be caused by the fund engaging in active and frequent
trading, which generally leads to greater transaction costs;
|
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
|
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these risks;
|
• |
|
U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of the
fund’s investments;
|
• |
|
U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may
cause the market value of U.S. Treasury obligations to decline; and
|
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment style.
|
|
| |
| |
rjinvestmentmanagement.com | 51 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
The Class I shares of the fund have adopted the performance history and
financial statements of the shares of the fund’s predecessor. Each of the fund’s
share classes is invested in the same portfolio of securities, and the annual
returns would have differed only to the extent that the classes do not have the
same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
28.15% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(25.25)% |
|
March 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
|
| |
Class I
– Before Taxes |
|
10/31/06 |
|
12.73% |
|
10.69% |
|
8.79% |
|
|
| |
|
|
|
|
| |
After Taxes on Distributions |
|
|
|
12.69% |
|
9.69% |
|
7.12% |
|
|
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
7.57% |
|
8.44% |
|
6.65% |
|
|
| |
|
|
|
|
| |
Class A
– Before Taxes |
|
11/20/17 |
|
7.07% |
|
9.35% |
|
| |
|
6.08% |
|
|
|
|
|
| |
Class C
– Before Taxes |
|
11/20/17 |
|
11.57% |
|
9.57% |
|
| |
|
6.12% |
|
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
11/20/17 |
|
12.85% |
|
10.79% |
|
| |
|
7.28% |
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(From Inception Date of Class A,
Class C and Class R‑6 Shares) |
|
|
|
|
|
| |
Russell Midcap® Index |
|
| |
17.23% |
|
12.68% |
|
9.42% |
|
|
9.12% |
|
|
| |
52 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT MID CAP
FUND | 4.26.2024
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Scout Investments, Inc. serves as
the subadviser to the fund.
Portfolio Managers | Derek M. Smashey, CFA®, John A. Indellicate II,
CFA® and Jason J.
Votruba, CFA®, have
served as Portfolio Co‑Managers of the fund since its inception in 2017. Messrs.
Smashey, Indellicate and Votruba are jointly and primarily responsible for the
day‑to‑day management of the fund. Mr. Smashey served as Portfolio
Co‑Manager of the fund’s predecessor from its inception in 2006 to 2017. Messrs.
Indellicate and Votruba served as Portfolio Co‑Managers of the fund’s
predecessor from 2011 and 2013, respectively, to 2017.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
| |
rjinvestmentmanagement.com | 53 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP
FUND | 4.26.2024
Investment objective |
The Carillon Scout Small Cap Fund (“Small Cap Fund” or the “fund”)
seeks long-term growth of capital.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Small Cap Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
4.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.60% |
|
0.60% |
|
0.60% |
|
0.60% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.35% |
|
0.34% |
|
0.36% |
|
0.26% |
|
|
|
| |
Total Annual Fund Operation Expenses |
|
1.20% |
|
1.94% |
|
0.96% |
|
0.86% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(b) |
|
0.00% |
|
0.00% |
|
(0.01)% |
|
(0.01)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
1.20% |
|
1.94% |
|
0.95% |
|
0.85% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b)
Carillon Tower Advisers, Inc. (“Carillon”) has contractually agreed to waive its
investment advisory fee and/or reimburse certain expenses of the fund to the
extent that annual operating expenses of a class exceed a percentage of that
class’ average daily net assets through April 30,
2025 as follows: Class I – 0.95% and Class R-6 – 0.85%. This
expense limitation excludes interest, taxes, brokerage commissions, costs
relating to investments in other investment companies (acquired fund fees and
expenses), dividends, and extraordinary expenses. The contractual fee waivers
can be changed only with the approval of a majority of the fund’s Board of
Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same except that the example reflects the fee
waiver/expense reimbursement arrangement for the Class I and Class R-6 shares
through April 30, 2025. Your costs would be the same whether you sold your
shares or continued to hold them at the end of the period. Although your actual
costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$591 |
|
$838 |
|
$1,103 |
|
$1,860 |
Class C |
|
$297 |
|
$609 |
|
$1,047 |
|
$2,264 |
Class I |
|
$97 |
|
$305 |
|
$530 |
|
$1,177 |
Class R‑6 |
|
$87 |
|
$273 |
|
$476 |
|
$1,060 |
Portfolio
turnover | The fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses
or in the example, affect the fund’s performance. During the most recent fiscal
year, the fund’s portfolio turnover rate was 7% of the average value of its
portfolio.
|
| |
54 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP
FUND | 4.26.2024
Principal investment strategies
| The fund pursues its
objective by investing, under normal circumstances, at least 80% of its net
assets in equity securities (mostly common stocks) of small-capitalization
companies located anywhere in the United States. The fund’s portfolio managers
consider small-capitalization companies to be those companies that, at the time
of initial purchase, have a market capitalization equal to or less than the
largest company in the Russell 2000® Growth Index during the most
recent 12‑month period (approximately $17.4 billion during the 12‑month
period ended December 31, 2023). The fund is not required to sell equity
securities whose market values appreciate or depreciate outside this market
capitalization range. From time to time, the fund’s portfolio may include the
stocks of fewer companies than other diversified funds.
The equity securities
in which the fund invests include common stocks, depositary receipts, preferred
stocks, convertible securities, warrants and other rights, and real estate
investment trusts (“REITs”).
The fund normally
invests in a diversified portfolio of equity securities that are selected based
upon the portfolio management team’s perception of their above-average potential
for long-term growth of capital. The portfolio management team searches for
companies with a stock price below its estimated intrinsic value that it
believes are well positioned to benefit from the emergence of long-term
catalysts for growth. The identified growth catalysts are long-term and
secular (i.e., exhibiting relatively
consistent expansion over a long period). Following the identification of
well-positioned companies, the portfolio management team estimates the fair
value of each candidate by assessing: margin structure, growth rate, debt level
and other measures which it believes influence relative stock valuations. The
overall company analysis includes the assessment of the liquidity of each
security, sustainability of profit margins, barriers to entry, company
management and free cash flow.
The fund will invest
primarily in securities of U.S. companies, but may invest up to 10% of the
portfolio in foreign companies, including those located in developing countries
or emerging markets, American Depositary Receipts (“ADRs”) or Global Depositary
Receipts (“GDRs”) (collectively, “depositary receipts”). Although the portfolio
managers generally do not emphasize investment in any particular investment
sector or industry, the fund may invest a significant portion of its assets in
the securities of companies in the health care, information technology and
industrials sectors at any given time. The fund also may hold securities of
mid‑capitalization companies.
The fund intends to
hold some cash, short-term debt obligations, government securities, money market
funds or other high-quality investments for reserves to cover redemptions and
unanticipated expenses. There may be times, however, when the fund attempts to
respond to adverse market, economic, political or other conditions by investing
a higher percentage of its assets in cash or in those types of money market
investments for temporary defensive purposes. During those times, the fund may
not be able to pursue its investment objective or follow its principal
investment strategies and, instead, will focus on preserving your
investment.
The fund may lend its securities
to broker-dealers and other financial institutions to earn additional
income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The fund invests primarily in securities whose values may
increase and decrease in response to the activities of the companies that issued
such securities, general market conditions and/or economic conditions. As a
result, the fund’s net asset value (“NAV”) may also increase and decrease.
An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Small-cap company risk arises because
small-cap companies involve greater risks than investing in large-
capitalization companies. Small-cap companies generally have lower volume
of shares traded daily, less liquid stock, a more volatile share price, a
limited product or service base, narrower commercial markets and more
limited access to capital, compared to larger, more established companies.
These factors increase risks and make these companies more likely to fail
than companies with larger market capitalizations, and could increase the
volatility of a fund’s portfolio and performance. Generally, the smaller
the company size, the greater these risks;
|
• |
|
Growth stock risk is the risk of a growth
company not providing an expected earnings increase or dividend yield.
When these expectations are not met, the prices of these stocks may
decline, even if earnings showed an absolute increase. If a growth
investment style shifts out of favor based on market conditions and
investor sentiment, the fund could underperform funds that use a value or
other non‑growth approach to investing or have a broader investment style;
|
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps
|
|
| |
| |
rjinvestmentmanagement.com | 55 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP
FUND | 4.26.2024
|
suddenly and to a significant degree.
These and other conditions may cause broad changes in market value, the
general outlook for corporate earnings, public perceptions concerning
these developments or adverse investment sentiment generally. Changes in
the financial condition of a single issuer, industry or market segment
also can impact the market as a whole. In addition, adverse market events
may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change;
• |
|
Emerging markets are generally smaller,
less developed, less liquid and more volatile than the securities markets
of the U.S. and other foreign developed markets. There are also risks of:
greater political uncertainties; an economy’s dependence on revenues from
particular commodities or on international aid or development assistance;
currency transfer restrictions; a limited number of potential buyers for
such securities; delays and disruptions in securities settlement
procedures; less stringent, or a lack of, accounting, auditing, financial
reporting and recordkeeping requirements or standards; and significant
limitations on investor rights and recourse. The governments of emerging
market countries may also be more unstable. There may be less publicly
available information about issuers in emerging markets. When investing in
emerging markets, the risks of investing in foreign securities are
heightened; |
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional risks:
|
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing company;
|
| |
56 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP
FUND | 4.26.2024
Preferred
stock. Preferred stocks are
subject to issuer-specific risks and are sensitive to movements in interest
rates. Preferred stocks may be less liquid than common stocks and, unlike common
stocks, participation in the growth of an issuer may be limited. Distributions
on preferred stocks generally are payable at the discretion of an issuer and
after required payments to bond holders. Preferred stocks may also be subject to
credit risk, which is the risk that an issuer may be unable or unwilling to meet
its financial obligations;
Convertible
securities. Convertible
securities are subject to the risk that the credit standing of the issuer may
have an effect on the convertible securities’ investment value. Convertible
securities also are sensitive to movements in interest rates. Generally, a
convertible security is subject to the market risks of stocks when the price of
the underlying stock is high relative to the conversion price, and is subject to
the market risks of debt securities when the underlying stock’s price is low
relative to the conversion price;
Depositary
receipts. Investing in
depositary receipts entails many of the same risks as direct investment in
foreign securities, including, but not limited to, currency exchange rate
fluctuations, political and financial instability in the home country of a
particular depositary receipt, less liquidity and more volatility;
REITs. Investments in REITs are subject to the risks
associated with investing in the real estate industry, such as adverse
developments affecting the real estate industry and real property values, and
are dependent upon the skills of their managers. REITs may not be diversified
geographically or by property or tenant type. REITs typically incur fees that
are separate from those incurred by the fund, meaning the fund, as a
shareholder, will indirectly bear a proportionate share of a REIT’s operating
expenses;
Rights and warrants. Rights and
warrants do not carry dividend or voting rights with respect to the underlying
securities or any rights in the assets of the issuer, and a right or a warrant
ceases to have value if it is not exercised prior to its expiration date;
• |
|
Focused holdings risk is the risk of the
fund holding a core portfolio of securities of fewer companies than other
funds, which means that the increase or decrease of the value of a single
investment may have a greater impact on the fund’s NAV and total return
when compared to other diversified funds;
|
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant limitations
on investor rights and recourse; (8) use of unfamiliar corporate
organizational structures; (9) unavailable or unreliable public
information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government oversight. Foreign security risk may also apply to
ADRs and GDRs; |
• |
|
Market timing risk arises because certain
types of securities in which the fund invests, including small‑cap and
foreign securities, could cause the fund to be at greater risk of market
timing activities by fund shareholders. Such activities can dilute the
fund’s NAV, increase the fund’s expenses and interfere with the fund’s
ability to execute efficient investment strategies;
|
• |
|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established companies;
|
• |
|
Investing in other investment companies,
including money market funds, carries with it the risk that, by
investing in another investment company, the fund will be exposed to the
risks of the types of investments in which the investment company invests.
The fund and its shareholders will indirectly bear the fund’s
proportionate share of the fees and expenses paid by shareholders of the
other investment company, in addition to the fees and expenses fund
shareholders directly bear in connection with the fund’s own operations;
|
• |
|
Sector risk is the risk associated with
the fund holding a core portfolio of stocks invested in similar
businesses, all of which could be affected by similar economic or market
conditions. As the fund’s portfolio changes over time, the fund’s exposure
to a particular sector may become higher or lower.
|
Health care sector risk is the risk that the
health care sector may be affected by government regulations and government
health care programs, restrictions on government reimbursement for medical
expenses, increases or decreases in the cost of medical products and services
and product liability claims, among other factors. Many health care products and
services may be subject to regulatory approvals. The process of obtaining such
approvals may be long and costly, and delays in or failure to receive such
approvals may negatively impact the business of such companies. Additional or
more stringent laws and regulations enacted in the future could have a material
adverse effect on such companies in the health care sector. Issuers in the
health care sector include issuers with their principal activities in the
biotechnology industry, which has additional risks. A biotechnology company’s
valuation can often be based largely on the potential or actual performance of a
limited number of products and, accordingly, can be significantly affected if
one of its products proves unsafe, ineffective or unprofitable. Biotechnology
companies are subject to regulation by, and the restrictions of, federal
agencies, state and local governments, and non-U.S. regulatory authorities;
Industrials sector risk is the risk that
companies in the industrials sector may be adversely affected by general
economic trends, including employment, economic growth, and interest rates,
changes in consumer sentiment and spending, commodity prices, legislation,
government regulation and spending, import controls, and worldwide competition.
In addition, companies in the industrials sector may be adversely affected by
liability for environmental damages, product liability claims and exchange
rates. The products of companies in the industrials sector also may face product
obsolescence due to rapid technological developments and frequent new product
introduction. The industrials sector includes companies engaged in the
construction, engineering, machinery, energy services, transportation,
professional services, and aerospace and defense industries;
|
| |
| |
rjinvestmentmanagement.com | 57 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP FUND | 4.26.2024
Information technology sector risk is the risk
that products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. These companies may be smaller or newer and may
have limited product lines, markets, financial resources or personnel. Failure
to introduce new products, develop and maintain a loyal customer base or achieve
general market acceptance for their products could have a material adverse
effect on a company’s business. Companies in the information technology sector
also may be subject to increased government scrutiny or adverse government
regulatory action. Additionally, companies in the information technology sector
are heavily dependent on intellectual property and the loss of patent, copyright
and trademark protections may adversely affect the profitability of these
companies. The market prices of information technology-related securities tend
to exhibit a greater degree of interest rate risk and market risk and may
experience sharper price fluctuations than other types of securities. These
securities may fall in and out of favor with investors rapidly, which may cause
sudden selling and dramatically lower market prices;
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
|
• |
|
U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of the
fund’s investments;
|
• |
|
U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may cause
the market value of U.S. Treasury obligations to decline; and
|
• |
|
Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment style.
|
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
The Class I shares of the fund have adopted the performance history and
financial statements of the shares of the fund’s predecessor. Each of the fund’s
share classes is invested in the same portfolio of securities, and the annual
returns would have differed only to the extent that the classes do not have the
same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
| |
58 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP
FUND | 4.26.2024
|
|
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
34.38% |
|
December 31, 2020 |
|
|
| |
Worst Quarter |
|
| |
(26.50)% |
|
March 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
| |
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
|
| |
Class I
– Before Taxes |
|
7/2/01 |
|
9.99% |
|
8.59% |
|
8.47% |
|
|
| |
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
9.99% |
|
6.92% |
|
6.71% |
|
|
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
5.92% |
|
6.73% |
|
6.60% |
|
|
| |
|
|
|
|
| |
Class A
– Before Taxes |
|
11/20/17 |
|
4.54% |
|
7.29% |
|
| |
|
5.54% |
|
|
|
|
|
| |
Class C
– Before Taxes |
|
11/20/17 |
|
8.88% |
|
7.51% |
|
| |
|
5.58% |
|
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
11/20/17 |
|
10.09% |
|
8.70% |
|
| |
|
6.75% |
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(From Inception Date of Class A,
Class C and Class R‑6 Shares) |
|
|
|
|
|
| |
Russell 2000 Growth Index |
|
| |
18.66% |
|
9.22% |
|
7.16% |
|
|
6.23% |
|
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Scout Investments, Inc. serves as
the subadviser to the fund.
Portfolio Managers | James R. McBride, CFA®, has served as the Lead
Portfolio Manager of the fund and Timothy L. Miller, CFA® has served as Portfolio
Co-Manager of the fund since its inception in 2017. Tim Burger, CFA®, has served as Portfolio
Co-Manager of the fund since April 2024. Messrs. McBride, Miller and Burger are
jointly and primarily responsible for the day-to-day management of the fund. Mr.
McBride was Portfolio Co-Manager of the fund’s predecessor from 2010 through
2015 and served as Lead Portfolio Manager of the fund’s predecessor from 2015 to
2017. Mr. Miller served as Portfolio Co‑Manager of the fund’s predecessor from
2013 to 2017. Mr. Burger served as a Senior Investment Analyst for the fund from
2019 to April 2024.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their
|
| |
| |
rjinvestmentmanagement.com | 59 |
Carillon
Mutual Funds
SUMMARY OF CARILLON SCOUT SMALL CAP FUND | 4.26.2024
own
minimum requirements. For Class R-6 shares, other than those purchased through a
participating retirement plan, the minimum initial purchase is $1,000,000. For
Class R-6 shares purchased through a participating retirement plan, the minimum
initial purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
60 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
Investment objective |
The Carillon Chartwell Real Income Fund’s (“Real Income Fund” or
the “fund”) investment objectives are to provide investors with current income
and preserve inflation adjusted capital by seeking returns that exceed the rate
of inflation over a complete market cycle.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Real Income Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
3.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.40% |
|
0.40% |
|
0.40% |
|
0.40% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.38% (b) |
|
0.38% (b) |
|
0.33% |
|
0.23% (b) |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
1.03% |
|
1.78% |
|
0.73% |
|
0.63% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(c) |
|
(0.09%) |
|
(0.09%) |
|
(0.09%) |
|
(0.09%) |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
0.94% |
|
1.69% |
|
0.64% |
|
0.54% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Other Expenses for the
Class A, Class C and Class R‑6 shares are estimated for the
current fiscal year.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 0.94%, Class C – 1.69%,
Class I – 0.64% and Class R‑6 – 0.54%. This expense limitation
excludes interest, taxes, brokerage commissions, costs relating to investments
in other investment companies (acquired fund fees and expenses), dividend and
interest expenses on short sales, expenses incurred in connection with any
merger or reorganization, and extraordinary expenses. The contractual fee
waivers can be changed only with the approval of a majority of the fund’s Board
of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$467 |
|
$682 |
|
$914 |
|
$1,579 |
Class C |
|
$272 |
|
$552 |
|
$956 |
|
$2,087 |
Class I |
|
$65 |
|
$224 |
|
$397 |
|
$898 |
Class R‑6 |
|
$55 |
|
$193 |
|
$342 |
|
$778 |
|
| |
| |
rjinvestmentmanagement.com | 61 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 59% of the average value of its
portfolio.
Principal investment strategies
| The fund seeks to
achieve its investment objectives by investing in income producing securities.
Under normal circumstances, the fund intends to invest at least 60% of its net
assets in Treasury Inflation Protected Securities (“TIPS”). TIPS are publicly
issued, dollar denominated U.S. Government securities issued by U.S. Treasury
that have principal and interest payments linked to official inflation (as
measured by the Consumer Price Index, or CPI). Their payments are supported by
the full faith and credit of the United States. In selecting TIPS and other
inflation-indexed debt securities, including those issued by the U.S. and
non‑U.S. government, their agencies or instrumentalities, the subadviser
implements a relative value strategy based on the subadviser’s outlook for
inflation and inflation-adjusted interest rates (real interest rates). The fund
may invest in TIPS and other inflation-indexed debt securities and fixed income
securities of any maturity. However, the fund’s average effective duration is
expected to range from three to seven years. Duration is a measure of a debt
security’s sensitivity to changes in interest rates. For example, the price of a
security with a seven-year duration would be expected to decline by
approximately 7% in response to a 1% increase in interest
rates.
In addition to
inflation-indexed debt securities, the fund may invest in other types of U.S.
Treasury bills, bonds and notes, debt securities issued by U.S. Government
agencies, corporate bonds, preferred stocks, mortgage-backed securities,
asset-backed securities, master limited partnerships (“MLPs”), below investment
grade securities, common stocks of mid‑ and large-capitalization companies and
natural resources and precious metals companies, including dividend-paying
securities, and securities issued by real estate investment trusts (“REITs”) and
exchange-traded funds (“ETFs”). The fund’s investments may include ETFs that
invest in natural resources and precious metals companies and gold and silver
directly, which the subadviser believes over the long term tend to be less
correlated to the equity and fixed income markets and may help to reduce the
fund’s overall volatility. Certain of the fund’s investments in corporate bonds
and preferred stocks may be convertible into common stocks. The subadviser also
may purchase bonds and preferred stocks in private transactions that qualify
under Rule 144A of the Securities Act of 1933 (the “1933 Act”). Additionally,
the subadviser may purchase securities that are not registered under the 1933
Act including Section 4(a)(2) securities and Rule 144A securities, which
are subject to restrictions on resale, and securities issued in non‑U.S. markets
subject to similar regulations.
The subadviser
selects corporate bonds and securitized products primarily on the basis of
relative value and current yield and secondarily on the basis of anticipated
long term return. The subadviser seeks to invest in the debt securities of
companies that it believes will experience stable or improving credit profiles,
and selects debt securities for the fund’s portfolio by analyzing a security’s
historical and relative yield spreads, as well as its credit quality, structure,
maturity and liquidity. When selecting corporate bonds and securitized products,
such as mortgage-backed securities and asset-backed securities, the subadviser
also will consider the rating the bond has received from Standard &
Poor’s Ratings Services, a division of McGraw Hill Companies, Inc. (“S&P”),
Moody’s Investors Service, Inc. (“Moody’s”), Fitch Ratings Ltd. (“Fitch”) or
Morningstar DRBS (“Morningstar”). The subadviser may invest in fixed income
securities of any credit rating including below investment grade securities.
Investment grade securities are those rated in the Baa3 or higher categories by
Moody’s, or in the BBB‑ or higher categories by S&P Fitch or Morningstar or,
if unrated by S&P, Moody’s, Fitch or Morningstar, determined by the
subadviser to be of comparable credit quality. Below-investment grade
securities, commonly referred to as “junk bonds” or “high yield securities,” are
securities rated below investment grade by at least one of Moody’s, S&P,
Fitch or Morningstar (or, if unrated, determined by the subadviser to be of
comparable credit quality).
The subadviser’s
investment approach seeks to identify companies with favorable valuations,
margin improvement, product innovations and visionary management teams. The fund
may invest up to 15% of its net assets in common stocks and in preferred stocks.
Preferred stocks are generally selected based on one of two criteria:
(1) preferred stocks that the subadviser believes are offering an above
average yield, in comparison to other preferred stocks of the same quality; and
(2) preferred stocks that the subadviser believes offer the potential for
capital appreciation due to the business prospects of the
issuers.
The fund may lend its securities
to broker-dealers and other financial institutions to earn additional
income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The values of most debt securities held by the fund may
be affected by changing interest rates and by changes in the effective
maturities and credit ratings of these securities. For example, the values of
debt securities in the fund’s portfolio generally will decline when interest
rates rise and increase when interest rates fall. As a result, the fund’s net
asset value (“NAV”) may also increase and decrease. An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Inflation-indexed debt securities risk is
the risk that inflation-indexed debt securities, including TIPS, will be
adversely affected by changes in real interest rates, which are market
interest rates that are adjusted for inflation. Unlike a conventional debt
security, whose issuer makes regular fixed interest payments and repays
the face value of the bond at maturity, an inflation-indexed debt security
provides principal payments and interest payments that vary as the
principal and/or interest are adjusted over time to reflect a rise or a
drop in the reference inflation-related index. The prices of
inflation-indexed debt securities tend to decrease when real interest
rates increase and increase when real interest rates decrease. Interest
payments on inflation-indexed debt securities may vary widely and will
fluctuate as the principal and interest are adjusted for inflation. If an
inflation index rate declines, the principal value
and |
|
| |
62 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
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interest
payable on an inflation-indexed security also will decline, adversely
affecting the fund’s investment. Because the interest and/or principal
payments on an inflation-indexed debt security are adjusted periodically
for changes in inflation, the income distributed by a fund may be
irregular. For inflation-indexed debt securities for which repayment of
the original principal upon maturity, as adjusted for inflation, is not
guaranteed, the adjusted principal value of the securities repaid at
maturity may be less than the original principal value. There can be no
assurance that an inflation index will accurately measure the real rate of
inflation in the prices of goods and services. The fund’s investments in
inflation-indexed investments may lose value in the event that the actual
rate of inflation is different from the rate of the inflation index. In
periods of deflation, the fund may have no income at all from such
investments; |
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
rise, perhaps significantly and/or rapidly, potentially resulting in
substantial losses to the fund. It is difficult to accurately predict the
pace at which interest rates might increase or decrease, or the timing,
frequency, or magnitude of such changes. The effect of increasing interest
rates is more pronounced for any intermediate- or longer-term fixed income
obligations owned by the fund. For example, if a bond has a duration of
seven years, a 1% increase in interest rates could be expected to result
in a 7% decrease in the value of the bond. Interest rates may rise,
perhaps significantly and/or rapidly, potentially resulting in substantial
losses to the fund due to, among other factors, a decline in the value of
the fund’s fixed income securities, heightened volatility in the fixed
income markets and the reduced liquidity of certain fixed income
investments. Conversely, during periods of very low or negative interest
rates, the fund may be unable to maintain positive returns or pay
dividends to fund
shareholders; |
• |
|
Equity securities are subject to market
risk. In general, the values of stocks and other equity securities
fluctuate, sometimes widely, in response to changes in a company’s
financial condition as well as general market, economic and political
conditions and other factors. The fund may invest in the following equity
securities, which may expose the fund to the following additional
risks: |
Common
stocks. The value of a company’s common stock may fall as a result
of factors affecting the company, companies in the same industry or sector, or
the financial markets overall. Common stock generally is subordinate to
preferred stock upon the liquidation or bankruptcy of the issuing company;
Convertible
securities. Convertible securities are subject to the risk that
the credit standing of the issuer may have an effect on the convertible
securities’ investment value. Convertible securities also are sensitive to
movements in interest rates. Generally, a convertible security is subject to the
market risks of stocks when the price of the underlying stock is high relative
to the conversion price, and is subject to the market risks of debt securities
when the underlying stock’s price is low relative to the conversion price;
Dividend-Paying
Stocks. Securities of companies that have historically paid a high
dividend yield may reduce or discontinue their dividends, reducing the yield of
the fund. Low priced securities in the fund may be more susceptible to these
risks. Past dividend payments are not a guarantee of future dividend payments.
Also, the market return of high dividend yield securities, in certain market
conditions, may perform worse than other investment strategies or the overall
stock market;
Preferred
stock. Preferred stocks are subject to issuer-specific risks and
are sensitive to movements in interest rates. Preferred stocks may be less
liquid than common stocks and, unlike common stocks, participation in the growth
of an issuer may be limited. Distributions on preferred stocks generally are
payable at the discretion of an issuer and after required payments to bond
holders. Preferred stocks may also be subject to credit risk, which is the risk
that an issuer may be unable or unwilling to meet its financial obligations;
REITs.
Investments in REITs are subject to the risks associated with investing in the
real estate industry, such as adverse developments affecting the real estate
industry and real property values, and are dependent upon the skills of their
managers. REITs may not be diversified geographically or by property or tenant
type. REITs typically incur fees that are separate from those incurred by the
fund, meaning the fund, as a shareholder, will indirectly bear a proportionate
share of a REIT’s operating expenses;
• |
|
Callable securities risk arises from the
fact that the fund may invest in fixed-income securities with call
features. A call feature allows the issuer of the security to redeem or
call the security prior to its stated maturity date. In periods of falling
interest rates, issuers may be more likely to call in securities that are
paying higher coupon rates than prevailing interest rates. In the event of
a call, the fund would lose the income that would have been earned to
maturity on that security, and the proceeds received by the fund may be
invested in securities paying lower coupon rates and may not benefit from
any increase in value that might otherwise result from declining interest
rates; |
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|
Credit ratings risk is the risk
associated with the fact that ratings by nationally recognized rating
agencies generally represent the agencies’ opinion of the credit quality
of an issuer and may prove to be
inaccurate; |
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|
Credit risk arises if an issuer is unable
or unwilling, or is perceived as unable or unwilling, to meet its
financial obligations or goes
bankrupt; |
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political and
financial instability; (3) less liquidity; (4) lack of uniform accounting,
auditing and financial reporting standards; (5) increased volatility; (6)
less government regulation and supervision of foreign stock exchanges,
brokers and listed companies; (7) significant limitations on investor
rights and recourse; (8) use of unfamiliar corporate organizational
structures; (9) unavailable or unreliable public information regarding
issuers; and (10) delays in transaction settlement in some foreign
markets. The unavailability and/or unreliability of public information
available may impede the fund’s ability to accurately evaluate foreign
securities. Moreover, it may be difficult to enforce contractual
obligations or invoke judicial or arbitration processes against non-U.S.
companies and non-U.S. persons in foreign jurisdictions. The risks
associated with investments in governmental or quasi-governmental entities
of a foreign country are heightened by the potential for unexpected
governmental change and inadequate government
oversight; |
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|
High-yield security risk results from
investments in below investment grade bonds, which have a greater risk of
loss, are susceptible to rising interest rates and have greater
volatility, especially when the economy is weak or expected to become
weak. Investments in high-yield securities
(commonly |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
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referred
to as “junk bonds”) are inherently speculative and carry a greater risk
that the issuer will default on the timely payment of principal and
interest. High yield securities carry greater levels of call risk, credit
risk and liquidity risk; |
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|
Income risk is the risk that the fund’s
income could decline due to falling market interest rates. In a falling
interest rate environment, the fund may be required to invest its assets
in lower-yielding
securities; |
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|
Issuer risk is the risk that the value of
a security may decline for a reason directly related to the issuer, such
as management performance, financial leverage and reduced demand for the
issuer’s goods or
services; |
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|
Large-cap company risk arises because
large‑cap companies may be less responsive to competitive challenges and
opportunities, and may be unable to attain high growth rates, relative to
smaller companies; |
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|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
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|
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
subadviser about the quality, relative yield or value of, or market trends
affecting, a particular security, industry, sector, region or market
segment, or about the economy or interest rates generally. This judgment
may prove to be incorrect or otherwise may not produce the intended
results, which may result in losses to the fund. Investment strategies
employed by the fund’s subadviser in selecting investments for the fund
may not result in an increase in the value of your investment or in
overall performance equal to other
investments; |
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|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
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Master limited partnership risk involves
certain risks related to investing in the underlying assets of the MLPs
and risks associated with pooled investment vehicles. Investments held by
MLPs may be relatively illiquid, limiting the MLPs’ ability to change
their portfolios promptly in response to changes in economic or other
conditions. MLPs may have limited financial resources, their securities
may trade infrequently and in limited volume, they may be difficult to
value, and they may be subject to more abrupt or erratic price movements
than securities of larger or more broadly based companies. Distributions
from an MLP may consist in part of a return of the amount originally
invested, which would not be taxable to the extent the distributions do
not exceed the investor’s adjusted basis in its MLP interest. These
reductions in the fund’s adjusted tax basis in the MLP securities will
increase the amount of gain (or decrease the amount of loss) recognized by
a fund on a subsequent sale of the securities. Holders of units in MLPs
have more limited rights to vote on matters affecting the partnership and
may be required to sell their common units at an undesirable time or
price. The fund’s investments in MLPs may be limited in order for the fund
to meet the requirements necessary to qualify as a “regulated investment
company” under the Internal Revenue Code of 1986, as amended (“Internal
Revenue Code”); |
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|
Maturity risk is the risk associated with
the fact that the fund will invest in fixed income securities of varying
maturities. Generally, the longer a fixed income security’s maturity, the
greater the interest rate risk. Conversely, the shorter a fixed income
security’s maturity, the lower the
risk; |
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|
Mid-cap company risk arises because
mid‑cap companies may have narrower commercial markets, limited managerial
and financial resources, more volatile performance, and less liquid stock,
compared to larger, more established
companies; |
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|
Mortgage- and asset-backed security risk
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. Although the value of a mortgage-backed security
may decline when interest rates rise, the converse is not necessarily
true, since in periods of declining interest rates the mortgages
underlying the security are more likely to be prepaid. When interest rates
rise, the effective duration of a fund’s mortgage-backed and asset-backed
securities may lengthen due to a drop in prepayments of the underlying
mortgages. This delay in the repayment of principal could increase the
potential for loss when prevailing interest rates rise, which could cause
the values of the securities to fall
sharply; |
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|
Natural resources and precious metals
risk is the risk that the fund’s investments in companies in
natural resources and precious metals businesses and ETFs that invest in
these companies or directly in precious metals are more vulnerable to
price movements of natural resources and market, economic and other
factors that particularly affect those types of businesses. These
investments may be adversely affected by numerous factors, including
changes in supply of, or demand for, various natural resources, changes in
energy prices, international political and economic developments, economic
conditions in large importation countries, import controls, civil
conflict, natural or man‑made disasters, actions to address climate change
or other environmental factors, energy conservation, the success of
exploration projects, fluctuation and changes in commodity or other raw
material prices, production spending, increased competition, technological
developments, and tax and other government regulation and intervention.
These factors could adversely affect the performance of companies in the
natural resources and precious metals businesses and ETFs that invest in
these companies or directly in precious metals, and the fund’s performance
could be affected by these
factors; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests, such as
natural resources and precious metals companies and direct investments in
gold and silver. The fund and its shareholders will indirectly bear the
fund’s proportionate share of the fees and expenses paid by shareholders
of the other investment company, in addition to the fees and expenses fund
shareholders directly bear in connection with the fund’s own operations.
ETF shares may trade at a premium or discount to their net asset value. An
ETF that tracks an index may not precisely replicate the returns of its
benchmark index; |
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|
Prepayment and extension risk is the risk
that a bond or other fixed-income security or investment might, in the
case of prepayment risk, be called or otherwise converted, prepaid or
redeemed before maturity and, in the case of extension risk, might not be
prepaid as expected. Due to a decline in interest rates or excess cash
flow into the issuer, a debt security may be called or otherwise
converted, prepaid or redeemed before maturity. If this occurs, no
additional interest will be paid on the investment. The fund may have to
reinvest the proceeds in another investment at a lower rate, may not
benefit from an increase in value that may result from declining interest
rates, and may lose any premium it paid to acquire the security, any of
which could result in a reduced yield to the fund. The rate of prepayments
tends to increase as interest rates fall, which could cause the average
maturity of the portfolio to shorten. Conversely, extension risk is the
risk that a decrease in prepayments may, as a result of higher interest
rates or other factors, result in the extension of a security’s effective
maturity, increase the risk of default or
delayed |
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
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payment,
heighten interest rate risk and increase the potential for a decline in
its price. In addition, as a consequence of a decrease in prepayments, the
amount of principal available to the fund for investment would be reduced.
Extensions of obligations could cause the fund to exhibit additional
volatility and hold securities paying lower-than-market rates of interest,
which could hurt the fund’s
performance; |
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Redemption risk is the risk that, due to
a rise in interest rates or other changing government policies that may
cause investors to move out of fixed income securities on a large scale,
the fund may experience periods of heavy redemptions that could cause the
fund to sell assets at inopportune times or at a loss or depressed
value; |
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Restricted securities risk is the risk
that securities not registered in the U.S. under the 1933 Act, or in
non-U.S. markets pursuant to similar regulations, including
“Section 4(a)(2)” securities and “Rule 144A” securities, are
restricted as to their resale. Such securities may not be listed on an
exchange and may have no active trading market. Before they are
registered, such securities may be sold only in a privately negotiated
transaction or pursuant to an exemption from registration. As a result of
the absence of a public trading market, the prices of these securities may
be more difficult to determine than publicly traded securities and these
securities may involve heightened risk as compared to investments in
securities of publicly traded companies. They also may be more difficult
to purchase or sell at an advantageous time or price. The fund may not be
able to sell a restricted security when the subadviser considers it
desirable to do so and/or may have to sell the security at a lower price
than the fund believes is its fair market value. In addition, transaction
costs may be higher and the fund may receive only limited information
regarding the issuer of a restricted security. The fund may have to bear
the expense of registering restricted securities for resale and the risk
of substantial delays in effecting the
registration; |
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Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially; |
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U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of the
fund’s
investments; |
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U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may cause
the market value of U.S. Treasury obligations to
decline; |
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Valuation risk arises because the
securities held by the fund may be priced by an independent pricing
service and may also be priced using dealer quotes or fair valuation
methodologies in accordance with valuation procedures adopted by the
fund’s Board. The prices provided by the independent pricing service or
dealers or the fair valuations may be different from the prices used by
other mutual funds or from the prices at which securities are actually
bought and sold;
and |
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Value stock risk arises from the
possibility that a stock’s intrinsic value may not be fully realized by
the market or that its price may decline. If a value investment style
shifts out of favor based on market conditions and investor sentiment, the
fund could underperform funds that use a non‑value approach to investing
or have a broader investment
style. |
Performance
| Effective April 26,
2024, the fund’s investment objectives are to provide investors with current
income and preserve inflation adjusted capital by seeking returns that exceed
the rate of inflation over a complete market cycle. To implement its investment
objectives, the fund intends to invest under normal circumstances at least 60%
of its net assets in TIPS. In selecting TIPS and other inflation-indexed debt
securities, including those issued by the U.S. and non‑U.S. government, their
agencies and instrumentalities, the subadviser implements a relative value
strategy based on the subadviser’s outlook for inflation and inflation-adjusted
interest rates. Performance through April 25, 2024 reflects the Fund’s
performance pursuant to its previous investment objectives and principal
investment strategies.
The fund is the
successor to the Chartwell Income Fund (“Predecessor Fund”) pursuant to a
reorganization involving the fund and the Predecessor Fund that occurred on
July 1, 2022. The Class I shares of the fund have adopted the
performance history and financial statements of the Predecessor Fund. Prior to
April 26, 2024, the Class I shares of the fund were designated as
Class Chartwell shares. Prior to the date of the reorganization, the fund
had no investment operations. Accordingly, the performance information,
including information on fees and expenses and financial information provided in
this prospectus for periods prior to the reorganization (the fund’s commencement
of operations) is historical information for the Predecessor Fund. Given the
above, unless specifically stated otherwise, subsequent references in this
section to the fund should be read to include the Predecessor Fund, as well as
the other predecessor funds described below.
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Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
Prior to this
reorganization, the Predecessor Fund acquired the assets and liabilities of the
Berwyn Income Fund (the “IMST Predecessor Fund”), a series of Investment
Managers Series Trust, on July 17, 2017. The IMST Predecessor Fund acquired
the assets and liabilities of the Berwyn Income Fund (the “Berwyn Funds
Predecessor Fund,” and together with the IMST Predecessor Fund and the
Predecessor Fund, the “Predecessor Funds”), a series of The Berwyn Funds, on
April 29, 2016. As a result of the reorganizations, the fund is the
accounting successor of the Predecessor Funds. Performance results shown in the
bar chart and the performance table below reflect the performance of the IMST
Predecessor Fund for the period from April 29, 2016 through July 17,
2017, and the performance of the Berwyn Funds Predecessor Fund for the period
prior to April 29, 2016. The Predecessor Funds’ past performance, before
and after taxes, is not necessarily an indication of how the fund will perform
in the future.
The bar chart that
follows illustrates annual fund returns for the periods ended December 31.
The
table that follows compares the fund’s returns for various periods with the
returns of the Bloomberg U.S. TIPS Index, a broad-based measure of market
performance that has characteristics relevant to the fund’s current investment
strategies, and the Bloomberg U.S. Aggregate Bond Index, which was the fund’s
prior benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to
another.
Performance information is not shown for the
fund’s Class A, Class C and Class R‑6 shares because those share
classes had not commenced operations prior to the date of this
prospectus. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
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During 10 year period (Class I
shares): |
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Return |
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Quarter Ended |
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Best Quarter |
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9.73% |
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June 30,
2020 |
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Worst Quarter |
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(13.80)% |
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March 31,
2020 |
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Average annual total returns (for the
periods ended December 31, 2023): |
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Fund return (after
deduction of sales charges and
expenses) |
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor Funds, as
applicable.
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Share
Class |
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1-yr |
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5-yr |
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10-yr |
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Class
I – Before Taxes |
|
7.77% |
|
3.56% |
|
2.92% |
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After
Taxes on Distributions |
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6.35% |
|
2.35% |
|
1.65% |
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
4.64% |
|
2.28% |
|
1.84% |
|
| |
| |
rjinvestmentmanagement.com | 67 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL REAL INCOME
FUND | 4.26.2024
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
| |
|
|
1-yr |
|
5‑yr |
|
10-yr |
|
|
| |
Bloomberg U.S. TIPS Index (1) |
|
3.90% |
|
3.15% |
|
2.42% |
|
|
| |
Bloomberg U.S. Aggregate Bond Index |
|
5.53% |
|
1.10% |
|
1.81% |
|
|
| |
No one index is
representative of the fund’s portfolio. |
|
|
|
|
|
|
(1) Concurrent with the change in the
fund’s investment objectives and principal investment strategies described
above, the fund’s benchmark index has changed from the Bloomberg U.S. Aggregate
Bond Index to the Bloomberg U.S. TIPS Index because the Manager believes that
the Bloomberg U.S. TIPS Index is more reflective of the Fund’s revised
investment objectives and principal investment strategies. Performance for the
periods shown in the table above reflects the fund’s performance pursuant to its
previous investment objectives and principal investment
strategies.
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Chartwell Investment Partners, LLC
(“Chartwell”) serves as the subadviser to the fund.
Portfolio Managers | David C. Dalrymple,
CFA®, T. Ryan Harkins,
CFA®, Andrew S. Toburen,
CFA®, Thomas R. Coughlin,
CFA®, CMT, Jeffrey D.
Bilsky, John M. Hopkins, CFA® and Christine F. Williams,
who have served as Portfolio Managers of the fund since its inception on
July 1, 2022, and Reid T. Halloran, who has served as Portfolio Manager of
the fund since January 1, 2024, are jointly and primarily responsible for
the day‑to‑day management of the fund. Effective March 31, 2025, Mr. Dalrymple
will retire as a portfolio manager of the fund. Each of the portfolio managers
other than Mr. Hopkins, Ms. Williams and Mr. Halloran served as a
member of the Predecessor Fund’s portfolio management team from March 1,
2019 to June 2022. Mr. Hopkins and Ms. Williams each served as a
member of the Predecessor Fund’s portfolio management team from March 1,
2021 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R‑6 shares, other than those purchased through a participating
retirement plan, the minimum initial purchase is $1,000,000. For Class R‑6
shares purchased through a participating retirement plan, the minimum initial
purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
68 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
Investment objective |
The Carillon Chartwell Short Duration High Yield Fund (“Short
Duration High Yield Fund” or the “fund”) seeks income and long-term capital
appreciation.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Short Duration High Yield Fund.
You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
3.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your
investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.30% |
|
0.30% |
|
0.30% |
|
0.30% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.35% (b) |
|
0.35% (b) |
|
0.30% |
|
0.20% (b) |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
0.90% |
|
1.65% |
|
0.60% |
|
0.50% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(c) |
|
(0.11%) |
|
(0.11%) |
|
(0.11%) |
|
(0.11%) |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
0.79% |
|
1.54% |
|
0.49% |
|
0.39% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Other Expenses for the
Class A, Class C and Class R‑6 shares are estimated for the
current fiscal year.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 0.79%, Class C – 1.54%,
Class I – 0.49% and Class R‑6 –0.39%. This expense limitation excludes
interest, taxes, brokerage commissions, costs relating to investments in other
investment companies (acquired fund fees and expenses), dividend and interest
expenses on short sales, expenses incurred in connection with any merger or
reorganization, and extraordinary expenses. The contractual fee waivers can be
changed only with the approval of a majority of the fund’s Board of Trustees.
Any reimbursement of fund expenses or reduction in Carillon’s investment
advisory fees is subject to recoupment by the fund within the following two
fiscal years, if overall expenses fall below the lesser of its then-current
expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$453 |
|
$641 |
|
$844 |
|
$1,432 |
Class C |
|
$257 |
|
$510 |
|
$887 |
|
$1,945 |
Class I |
|
$50 |
|
$181 |
|
$324 |
|
$740 |
Class R‑6 |
|
$40 |
|
$149 |
|
$269 |
|
$618 |
|
| |
| |
rjinvestmentmanagement.com | 69 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 39% of the average value of its
portfolio.
Principal investment
strategies| Under normal
circumstances, the fund invests at least 80% of its net assets (plus any
borrowings for investment purposes) in high yield debt securities. High yield
debt securities, also referred to as “junk” bonds, are securities rated below
the Baa3 category by Moody’s Investors Service, Inc. (“Moody’s), or below BBB-
by Standard & Poor’s Ratings Services, a division of McGraw Hill Companies,
Inc. (“S&P”) or Fitch Ratings Ltd. (“Fitch”), at the time of purchase or, if
unrated, are determined to be of comparable credit quality by the fund’s
subadviser. Under normal market conditions, the fund’s subadviser expects to
primarily invest in debt securities rated BB, the higher quality tier of the
overall high yield market, which the fund’s subadviser believes may offer an
opportunity for more attractive yield premiums, with a lower probability of
credit erosion relative to the high yield bond market as a whole. The subadviser
considers a security to be rated BB if, at the time of purchase, it was assigned
a rating of Ba1, Ba2, or Ba3 by Moody’s, or BB+, BB, or BB- by S&P or Fitch,
or, if unrated, it was determined to be of comparable credit quality by the
fund’s subadviser. The fund’s subadviser seeks to identify securities of
companies with stable cash flows and proven and established business models in
an effort to manage the amount of credit, interest rate, liquidity and other
risks, presented by the fund’s investments in high yield
securities.
The types of debt
securities in which the fund primarily invests include, but will not be limited
to, U.S. dollar denominated high yield corporate bonds and notes. The fund may
invest up to 20% of its assets in U.S. dollar denominated securities of issuers
based outside of the U.S. While the fund may invest in securities of any
maturity, the fund will normally target an average portfolio effective duration,
as estimated by the fund’s subadviser, of less than three years. Duration is a
measure of the underlying portfolio’s price sensitivity to changes in prevailing
interest rates. The longer a security’s duration, the more sensitive its price
will be to changes in interest rates. For example, the approximate percentage
decrease in the price of a security with a three-year duration would be 3% in
response to a 1% increase in interest rates.
The subadviser also
may purchase exchange-traded funds (“ETFs”) designed to track fixed income
securities indices to manage the fund’s cash holdings. ETFs are investment
companies that invest in portfolios of securities, often designed to track
particular market segments or indices, the shares of which are bought and sold
on a securities exchange. The ETFs in which the fund invests may invest
substantially all of their assets in high yield debt securities. Such ETFs are
taken into account when determining how much of the fund’s net assets have been
invested in high yield securities.
The fund may lend its securities
to broker-dealers and other financial institutions to earn additional
income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The values of most debt securities held by the fund may
be affected by changing interest rates and by changes in the effective
maturities and credit ratings of these securities. For example, the values of
debt securities in the fund’s portfolio generally will decline when interest
rates rise and increase when interest rates fall. As a result, the fund’s net
asset value (“NAV”) may also increase and decrease. An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these fluctuations. |
|
| |
70 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities, will move in the
opposite direction to movements in interest rates. Generally the value of
investments with interest rate risk will fall when interest rates rise.
Factors including central bank monetary policy, rising inflation rates,
and changes in general economic conditions may cause interest rates to
rise, perhaps significantly and/or rapidly, potentially resulting in
substantial losses to the fund. It is difficult to predict the pace at
which interest rates might increase or decrease, or the timing, frequency
or magnitude of such changes. The effect of increasing interest rates is
more pronounced for any intermediate- or longer-term fixed income
obligations owned by the fund. For example, if a bond has a duration of
three years, a 1% increase in interest rates could be expected to result
in a 3% decrease in the value of the bond. Interest rates may rise,
perhaps significantly and/ or rapidly, potentially resulting in
substantial losses to the fund due to, among other factors, a decline in
the value of the fund’s fixed income securities, heightened volatility in
the fixed income markets and the reduced liquidity of certain fixed income
investments. Conversely, during periods of very low or negative interest
rates, the fund may be unable to maintain positive returns or pay
dividends to fund
shareholders; |
• |
|
Credit ratings risk is the risk
associated with the fact that ratings by nationally recognized rating
agencies generally represent the agencies’ opinion of the credit quality
of an issuer and may prove to be
inaccurate; |
• |
|
Credit risk arises if an issuer is unable
or unwilling, or is perceived as unable or unwilling, to meet its
financial obligations or goes
bankrupt; |
|
| |
| |
rjinvestmentmanagement.com | 71 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations;
(2) political and financial instability; (3) less liquidity;
(4) lack of uniform accounting, auditing and financial reporting
standards; (5) increased volatility; (6) less government
regulation and supervision of foreign stock exchanges, brokers and listed
companies; (7) significant limitations on investor rights and
recourse; (8) use of unfamiliar corporate organizational structures;
(9) unavailable or unreliable public information regarding issuers;
and (10) delays in transaction settlement in some foreign markets.
The unavailability and/or unreliability of public information available
may impede the fund’s ability to accurately evaluate foreign securities.
Moreover, it may be difficult to enforce contractual obligations or invoke
judicial or arbitration processes against non‑U.S. companies and non‑U.S.
persons in foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
High-yield security risk results from
investments in below investment grade bonds, which have a greater risk of
loss, are susceptible to rising interest rates and have greater
volatility, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest. High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
• |
|
Income risk is the risk that the fund’s
income could decline due to falling market interest rates. In a falling
interest rate environment, the fund may be required to invest its assets
in lower-yielding
securities; |
• |
|
Issuer risk is the risk that the value of
a security may decline for a reason directly related to the issuer, such
as management performance, financial leverage and reduced demand for the
issuer’s goods or
services; |
• |
|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
• |
|
Management and strategy risk is the risk
that the value of your investment depends on the judgment of the fund’s
subadviser about the quality, relative yield or value of, or market trends
affecting, a particular security, industry, sector, region, or market
segment, or about the economy or interest rates generally. This judgment
may prove to be incorrect or otherwise may not produce the intended
results, which may result in losses to the fund. Investment strategies
employed by the fund’s subadviser in selecting investments for the fund
may not result in an increase in the value of your investment or in
overall performance equal to other
investments; |
• |
|
Maturity risk is the risk associated with
the fact that the fund will invest in fixed income securities of varying
maturities. Generally, the longer a fixed income security’s maturity, the
greater the interest rate risk. Conversely, the shorter a fixed income
security’s maturity, the lower the
risk; |
• |
|
Investing in other investment companies,
including ETFs, carries with it the risk that, by investing in
another investment company, the fund will be exposed to the risks of the
types of investments in which the investment company invests. The fund and
its shareholders will indirectly bear the fund’s proportionate share of
the fees and expenses paid by shareholders of the other investment
company, in addition to the fees and expenses fund shareholders directly
bear in connection with the fund’s own operations. ETF shares may trade at
a premium or discount to their net asset value. An ETF that tracks an
index may not precisely replicate the returns of its benchmark
index. |
• |
|
Redemption risk is the risk that, due to
a rise in interest rates or other changing government policies that may
cause investors to move out of fixed income securities on a large scale,
the fund may experience periods of heavy redemptions that could cause the
fund to sell assets at inopportune times or at a loss or depressed
value; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail financially;
and |
• |
|
Valuation risk arises because the
securities held by the fund may be priced by an independent pricing
service and may also be priced using dealer quotes or fair valuation
methodologies in accordance with valuation procedures adopted by the
fund’s Board. The prices provided by the independent pricing service or
dealers or the fair valuations may be different from the prices used by
other mutual funds or from the prices at which securities are actually
bought and sold. |
Performance
| The fund is the
successor to the Chartwell Short Duration High Yield Fund (“Predecessor Fund”)
pursuant to a reorganization involving the fund and the Predecessor Fund that
occurred on July 1, 2022. The Class I shares of the fund have adopted
the performance history and financial statements of the Predecessor Fund. Prior
to April 26, 2024, the Class I shares of the fund were designated as
Class Chartwell shares. Prior to the date of the reorganization, the fund
had no investment operations. Accordingly, the performance information,
including information on fees and expenses and financial information provided in
this prospectus for periods prior to the reorganization (the fund’s commencement
of operations) is historical information for the Predecessor Fund. Given the
above, unless specifically stated otherwise, subsequent references in this
section to the fund should be read to include the Predecessor Fund, as well as
the other predecessor funds described below.
Prior to this
reorganization, the Predecessor Fund acquired the assets and liabilities of the
Chartwell Short Duration High Yield Fund (the “IMST Predecessor Fund,” and
together with the Predecessor Fund, the “Predecessor Funds”), a series of
Investment Managers Series Trust, on July 17, 2017. As a result of the
reorganization, the fund is the accounting successor of the Predecessor Funds.
Performance results shown in the bar chart and the performance table below
reflect the performance of the IMST Predecessor Fund for the period prior to
July 17, 2017.
|
| |
72 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
The bar chart that
follows illustrates annual fund returns for the periods ended December 31. The
table that follows compares the fund’s returns for various periods with those of
its benchmark indices. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to
another.
Performance information is not shown for the
fund’s Class A, Class C and Class R‑6 shares because those share
classes had not commenced operations prior to the date of this
prospectus. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During period (Class I shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
6.05% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(6.43)% |
|
March 31,
2020 |
|
|
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after
deduction of sales charges and
expenses) |
For
the periods prior to the reorganization (the fund’s commencement of operations),
the performance is the historical performance of the Predecessor
Funds.
|
|
|
|
|
| |
|
|
| |
Share
Class |
|
1-yr |
|
5-yr |
|
Since Inception (July 15,
2014) |
|
|
| |
Class
I – Before Taxes |
|
7.80% |
|
3.67% |
|
2.79% |
|
|
| |
After
Taxes on Distributions |
|
5.84% |
|
2.20% |
|
1.41% |
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
4.57% |
|
2.18% |
|
1.55% |
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
| |
|
|
1-yr |
|
5-yr |
|
Since Inception (July 15,
2014) |
|
|
| |
ICE BofA 1‑3 Year BB US Cash Pay High
Yield Index |
|
8.86% |
|
4.54% |
|
3.92% |
|
|
| |
Bloomberg Intermediate US
Government/Credit Index |
|
5.24% |
|
1.59% |
|
1.59% |
|
|
| |
No one index is
representative of the fund’s portfolio. |
|
|
|
|
|
|
|
| |
| |
rjinvestmentmanagement.com | 73 |
Carillon
Mutual Funds
SUMMARY OF CARILLON CHARTWELL SHORT DURATION HIGH
YIELD FUND | 4.26.2024
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Chartwell Investment Partners, LLC
(“Chartwell”) serves as the subadviser to the fund.
Portfolio Managers | Andrew S. Toburen, CFA®, John M. Hopkins, CFA®, and Christine F. Williams
have served as Portfolio Managers of the fund since its inception on
July 1, 2022, and are jointly and primarily responsible for the day‑to‑ day
management of the fund. Mr. Toburen, Mr. Hopkins and Ms. Williams
served as the portfolio managers for the Predecessor Funds from their inception
on July 15, 2014 through June 2022.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R‑6 shares, other than those purchased through a participating
retirement plan, the minimum initial purchase is $1,000,000. For Class R‑6
shares purchased through a participating retirement plan, the minimum initial
purchase is set by the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
74 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND
FUND | 4.26.2024
Investment objective |
The Carillon Reams Core Bond Fund (“Core Bond Fund” or the “fund”)
seeks a high level of total return consistent with the preservation of
capital.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Core Bond Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
3.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a percentage
of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees (b) |
|
0.35% |
|
0.35% |
|
0.35% |
|
0.35% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.32% |
|
0.30% |
|
0.32% |
|
0.23% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
0.92% |
|
1.65% |
|
0.67% |
|
0.58% |
|
|
|
| |
Fee Waiver and/or Expense
Reimbursement (c) |
|
(0.17)% |
|
(0.15)% |
|
(0.22)% |
|
(0.23)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
0.75% |
|
1.50% |
|
0.45% |
|
0.35% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) The
Management Fees have been restated to reflect the current contractual fee rate
effective March 1, 2024.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 0.75%, Class C – 1.50%,
Class I – 0.45% and Class R‑6 – 0.35%. This expense limitation
excludes interest, taxes, brokerage commissions, short sale dividend and
interest expenses, costs relating to investments in other investment companies
(acquired fund fees and expenses), dividends, and extraordinary expenses. The
contractual fee waivers can be changed only with the approval of a majority of
the fund’s Board of Trustees. Any reimbursement of fund expenses or reduction in
Carillon’s investment advisory fees is subject to recoupment by the fund within
the following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
|
| |
| |
rjinvestmentmanagement.com | 75 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND FUND | 4.26.2024
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$449 |
|
$641 |
|
$849 |
|
$1,449 |
Class C |
|
$253 |
|
$506 |
|
$883 |
|
$1,942 |
Class I |
|
$46 |
|
$192 |
|
$351 |
|
$814 |
Class R‑6 |
|
$36 |
|
$163 |
|
$301 |
|
$704 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 530% of the average value of its
portfolio.
Principal investment strategies
| Under normal
circumstances, the fund invests at least 80% of its net assets in bonds of
varying maturities, including mortgage- and asset-backed securities. The
bonds in which the fund may invest also include other fixed income instruments
such as debt securities, to-be-announced securities, collateralized loan
obligations (“CLOs”) and other similar instruments issued by various U.S. and
non-U.S. public- or private-sector
entities.
The
fund invests primarily in investment grade securities. Investment grade
securities include securities rated in one of the four highest rating categories
by a nationally recognized statistical rating organization, such as BBB‑ or
higher by Standard & Poor’s Financial Services LLC (“S&P®”). If an investment
held by the fund is downgraded below investment grade, the fund may either sell
or continue to hold the security. In addition, the fund may purchase or sell
securities on a when-issued, delayed delivery or forward commitment
basis. All securities will be U.S. dollar denominated although they may be
securities of foreign issuers. Mortgage-backed securities are pools of mortgage
loans that are assembled as securities for sale to investors by various
governmental, government-related and private organizations. Asset-backed
securities are securities that are secured or “backed” by pools of various types
of assets, such as automobile loans, consumer loans, credit cards and equipment
leases, on which cash payments are due at fixed intervals over set periods of
time. CLOs are a type of securitized debt ordinarily issued by a trust or other
special purpose entity, and are typically collateralized by a pool of loans,
which may include, among others, domestic and foreign senior secured loans,
senior unsecured loans, and subordinate corporate loans, including loans that
may be rated below investment grade. The fund may invest in fixed income
securities with call features.
The
fund may invest in derivative instruments, such as futures contracts (including
interest rate, bond, U.S. Treasury and fixed income index futures contracts),
forwards and credit default swap agreements subject to applicable law and any
other restrictions described in the fund’s Prospectus or Statement of Additional
Information (“SAI”). The fund’s investment in credit default swap
agreements may include both single-name credit default swap agreements and
credit default swap index products, such as CDX index products. The use of
these derivative transactions may allow the fund to obtain net long or short
exposures to select interest rates, countries, durations or credit risks. These
derivatives may be used to enhance fund returns, increase liquidity, manage the
duration of the fund’s portfolio and/or gain exposure to certain instruments or
markets (i.e., the corporate bond
market) in a more efficient or less expensive way. The credit default swap
agreements that the fund invests in may provide exposure to an index of
securities representative of the entire investment grade fixed income market.
Derivative instruments that provide exposure to bonds may be used to satisfy the
fund’s 80% investment policy. For the purposes of the fund’s 80% investment
policy, the fund’s derivatives investments, other than credit default swaps
where the fund is a protection seller, are valued at market value. Credit
default swaps where the fund is a protection seller are valued at notional
value.
The
portfolio management team attempts to maximize total return over a long-term
horizon through opportunistic investing in a broad array of eligible
securities. The investment process combines top‑down interest rate
management with bottom‑up fixed income security selection, focusing on
undervalued issues in the fixed income market. The portfolio management
team first establishes the portfolio’s duration, or interest rate sensitivity.
The portfolio management team determines whether the fixed income market is
under-or over-priced by comparing current real interest rates (the nominal rates
on U.S. Treasury securities less the investment adviser’s estimate of inflation)
to historical real interest rates. If the current real interest rate is
higher than historical norms, the market is considered undervalued and the
portfolio management team will manage the portfolio with a duration greater than
the benchmark. Duration is a measure used to determine the sensitivity of a
security’s price to changes in interest rates. The longer a security’s
duration, the more sensitive it will be to changes in interest rates. If the
current real interest rate is less than historical norms, the market is
considered overvalued and the portfolio management team will run a defensive
portfolio by managing the portfolio with a duration less than the
benchmark. The portfolio management team
normally
structures
the fund so that the overall portfolio has a duration of less than eight years
based on market conditions. For purposes of calculating the fund’s
portfolio duration, the fund includes the effect of the derivative instruments
held by the fund.
|
| |
76 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND
FUND | 4.26.2024
The
portfolio management team then considers sector exposures. Sector exposure
decisions are made on both a top‑down and bottom‑up basis. A bottom‑up
issue selection process is the major determinant of sector exposure, as the
availability of attractive securities in each sector determines their
underweighting or overweighting in the fund subject to sector exposure
constraints. However, for the more generic holdings in the fund, such as
agency notes and pass-through mortgage backed securities, top‑down
considerations will drive the sector allocation process on the basis of overall
measurements of sector value such as yield spreads or price
levels.
Once
the portfolio management team has determined an overall market strategy, the
portfolio management team selects the most attractive fixed income securities
for the fund. The portfolio managers screen hundreds of securities to determine
how each will perform in various interest rate environments. The portfolio
managers construct these scenarios by considering the outlook for interest
rates, fundamental credit analysis and option-adjusted spread analysis. The
portfolio managers compare these investment opportunities and assemble the
fund’s portfolio from the best available values. The portfolio management team
constantly monitors the expected returns of the securities in the fund versus
those available in the market and of other securities the investment adviser is
considering for purchase. The portfolio management team’s strategy is to replace
securities that it feels are approaching fair market value with those that,
according to its analysis, are significantly undervalued. As a result of this
strategy, the fund’s portfolio turnover rate will vary from year to year
depending on market conditions and the fund may engage in frequent and active
trading.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The values of most debt securities held by the fund may
be affected by changing interest rates and by changes in the effective
maturities and credit ratings of these securities. For example, the values of
debt securities in the fund’s portfolio generally will decline when interest
rates rise and increase when interest rates fall. As a result, the fund’s net
asset value (“NAV”) may also increase and decrease. An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across
|
| |
| |
rjinvestmentmanagement.com | 77 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND FUND | 4.26.2024
various
markets or decrease confidence in the markets. Additionally, high public debt in
the U.S. and other countries creates ongoing systemic and market risks and
policymaking uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities or derivatives, will
move in the opposite direction to movements in interest rates. Generally
the value of investments with interest rate risk will fall when interest
rates rise. Factors including central bank monetary policy, rising
inflation rates, and changes in general economic conditions may cause
interest rates to rise, perhaps significantly and/or rapidly, potentially
resulting in substantial losses to the fund. It is difficult to predict
the pace at which interest rates might increase or decrease, or the
timing, frequency, or magnitude of such changes. The effect of increasing
interest rates is more pronounced for any intermediate- or longer-term
fixed income obligations owned by the fund. For example, if a bond has a
duration of eight years, a 1% increase in interest rates could be expected
to result in an 8% decrease in the value of the bond. Interest rates may
rise, perhaps significantly and/ or rapidly, potentially resulting in
substantial losses to the fund due to, among other factors, a decline in
the value of the fund’s fixed income securities, heightened volatility in
the fixed income markets and the reduced liquidity of certain fixed income
investments. Conversely, during periods of very low or negative interest
rates, the fund may be unable to maintain positive returns or pay
dividends to fund
shareholders; |
• |
|
Credit risk arises if an issuer or a
counterparty, in the case of a derivatives contract, is unable or
unwilling, or is perceived as unable or unwilling, to meet its financial
obligations or goes
bankrupt; |
• |
|
Callable securities risk arises from the
fact that the fund may invest in fixed-income securities with call
features. A call feature allows the issuer of the security to redeem or
call the security prior to its stated maturity date. In periods of falling
interest rates, issuers may be more likely to call in securities that are
paying higher coupon rates than prevailing interest rates. In the event of
a call, the fund would lose the income that would have been earned to
maturity on that security, and the proceeds received by the fund may be
invested in securities paying lower coupon rates and may not benefit from
any increase in value that might otherwise result from declining interest
rates; |
• |
|
Collateralized loan obligations (“CLOs”)
risk is the risk that CLOs may expose the fund to heightened credit
risk, interest rate risk, liquidity risk, market risk and prepayment and
extension risk. In addition to these risks, CLOs may also carry additional
risks including, but not limited to: (i) the possibility that
distributions from collateral securities will not be adequate for the CLO
to make interest or other payments; (ii) the risk that the quality of the
collateral may decline in value or default; (iii) the risk that the fund
may invest in classes of CLOs that are subordinate to other classes; (iv)
the risk that the complex structure of the security may not be fully
understood at the time of investment and may produce disputes with the
issuer or unexpected investment results; and (v) the possibility that the
CLO’s manager may perform poorly. CLOs may charge management and other
administrative fees, which are in addition to those of the fund. CLOs may
be difficult to value and may be highly leveraged, which could make them
highly volatile; |
• |
|
Counterparty risk is the risk that a
party or participant to a transaction, such as a broker or a derivative
counterparty, will be unwilling or unable to satisfy its obligation to
make timely principal, interest or settlement payments or to otherwise
honor its obligations to the
fund; |
• |
|
Credit ratings risk is the risk
associated with the fact that ratings by nationally recognized rating
agencies generally represent the agencies’ opinion of the credit quality
of an issuer and may prove to be
inaccurate; |
|
| |
78 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND
FUND | 4.26.2024
• |
|
Derivatives, such as swap agreements
(including credit default swaps and credit default swap index products),
futures (including interest rate futures, bond futures, U.S. Treasury
futures and fixed income index futures) or forwards, may involve greater
risks than if the fund had invested in the reference obligation directly.
Derivatives are subject to general market risks, liquidity risks, interest
rate risks, and credit risks. Derivatives also present counterparty risk
(i.e., the risk that the other party to the transaction will fail to
perform). Derivatives involve an increased risk of mispricing or improper
valuation of the derivative instrument, and imperfect correlation between
the value of the derivative and the underlying instrument, in which case
the fund may not realize the intended benefits. When used for hedging,
changes in the value of the derivative may also not correlate perfectly
with the underlying asset, rate or index. Derivatives can cause the fund
to participate in losses (as well as gains) in an amount that
significantly exceeds the fund’s initial investment. The derivatives
market may be subject to additional regulations in the
future. |
Swap Agreements. Swaps can involve greater risks than a direct
investment in an underlying asset because swaps typically include a certain
amount of embedded leverage. If swaps are used as a hedging strategy, the fund
is subject to the risk that the hedging strategy may not eliminate the risk that
it is intended to offset, due to, among other reasons, the occurrence of
unexpected price movements or the non‑occurrence of expected price movements.
Swaps also may be difficult to value. Swaps may be subject to counterparty risk,
credit risk and liquidity risk, especially when traded over‑the‑counter. In
addition to these risks, credit default swaps are subject to the risks
associated with the purchase and sale of credit
protection;
Futures and Forward Contracts. Futures and forward contracts are subject to
counterparty risk, credit risk and liquidity risk. There may at times be an
imperfect correlation between the movement in the prices of futures contracts
and the value of their underlying instruments or indexes. There are no
limitations on daily price movements of forward contracts. There can be no
assurance that any strategy used will succeed. Not all forward contracts require
a counterparty to post collateral, which may expose the fund to greater losses
in the event of a default by a counterparty. There can be no assurance that, at
all times, a liquid market will exist for offsetting a futures contract that the
fund has previously bought or sold and this may result in the inability to close
a futures contract when desired. Interest rate, bond and Treasury futures
contracts expose the fund to price fluctuations resulting from changes in
interest rates. The fund could suffer a loss if interest rates rise
after the fund has purchased an interest rate futures contract or fall
after the fund has sold an interest rate futures contract. Similarly, bond
and Treasury futures contracts expose the fund to potential losses if interest
rates do not move as expected. Fixed income index futures contracts expose the
fund to volatility in an underlying securities
index;
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant
limitations on investor rights and recourse; (8) use of unfamiliar
corporate organizational structures; (9) unavailable or unreliable
public information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
Hedging risk is the risk that, if the
fund uses a hedging instrument at the wrong time or judges the market
conditions incorrectly, or the hedged instrument does not correlate to the
risk sought to be hedged, the hedge might be unsuccessful, reduce the
fund’s return, or create a loss. In addition, hedges, even when successful
in mitigating risk, may not prevent the fund from experiencing losses on
its investments. Hedging instruments may also reduce or eliminate gains
that may otherwise have been available had the fund not used the hedging
instruments; |
• |
|
Income risk is the risk that the fund’s
income could decline due to falling market interest rates. In a falling
interest rate environment, the fund may be required to invest its assets
in lower-yielding
securities; |
• |
|
Issuer risk is the risk that the value of
a security may decline for a reason directly related to the issuer, such
as management performance, financial leverage and reduced demand for the
issuer’s goods or
services; |
• |
|
Leverage risk is the risk that the use of
financial instruments to increase potential returns, including the use of
when-issued, delayed delivery or forward commitment transactions, and
derivatives used for investment (non‑hedging) purposes, may cause the fund
to be more volatile than if it had not been leveraged. The use of
leverage may also accelerate the velocity of losses and can result in
losses to the fund that exceed the amount originally
invested; |
• |
|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
• |
|
Maturity risk is the risk associated with
the fact that the fund will invest in fixed income securities of varying
maturities. Generally, the longer a fixed income security’s maturity, the
greater the interest rate risk. Conversely, the shorter a fixed income
security’s maturity, the lower the
risk; |
• |
|
Mortgage- and asset-backed security risk
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. In a to‑be‑announced (“TBA”) mortgage-backed
transaction, the fund and the seller agree upon the issuer, interest rate
and terms of the underlying mortgages. However, the seller does not
identify the specific underlying mortgages until it issues the security.
TBA mortgage-backed securities increase fund exposure to interest rate
risks because the underlying mortgages may be less favorable than
anticipated by the
fund; |
• |
|
Portfolio turnover risk is the risk that
performance may be adversely affected by the high rate of portfolio
turnover that can be caused by the fund engaging in active and frequent
trading, which generally leads to greater transaction
costs; |
• |
|
Prepayment and extension risk is the risk
that a bond or other fixed-income security or investment might, in the
case of prepayment risk, be called or otherwise converted, prepaid or
redeemed before maturity and, in the case of extension risk, might not be
prepaid as expected. Due to a decline in
interest |
|
| |
| |
rjinvestmentmanagement.com | 79 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND FUND | 4.26.2024
|
rates
or excess cash flow into the issuer, a debt security may be called or
otherwise converted, prepaid or redeemed before maturity. If this occurs,
no additional interest will be paid on the investment. The fund may have
to reinvest the proceeds in another investment at a lower rate, may not
benefit from an increase in value that may result from declining interest
rates, and may lose any premium it paid to acquire the security, any of
which could result in a reduced yield to the fund. The rate of prepayments
tends to increase as interest rates fall, which could cause the average
maturity of the portfolio to shorten. Conversely, extension risk is the
risk that a decrease in prepayments may, as a result of higher interest
rates or other factors, result in the extension of a security’s effective
maturity, increase the risk of default or delayed payment, heighten
interest rate risk and increase the potential for a decline in its price.
In addition, as a consequence of a decrease in prepayments, the amount of
principal available to the fund for investment would be reduced.
Extensions of obligations could cause the fund to exhibit additional
volatility and hold securities paying lower-than-market rates of interest,
which could hurt the fund’s
performance; |
• |
|
Redemption risk is the risk that, due to
a rise in interest rates or other changing government policies that may
cause investors to move out of fixed income securities on a large scale,
the fund may experience periods of heavy redemptions that could cause the
fund to sell assets at inopportune times or at a loss or depressed
value; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially; |
• |
|
Sovereign and quasi-sovereign debt risk
is that risk that such debt securities are subject to risk of payment
delays or defaults due to, among other things: (1) country cash flow
problems, (2) insufficient foreign currency reserves, (3) political
considerations, (4) large debt positions relative to the country’s
economy, (5) policies toward foreign lenders or investors, (6) the failure
to implement economic reforms required by the International Monetary Fund
or other multilateral agencies, or (7) an inability or unwillingness to
repay debts. A governmental entity that defaults on an obligation may
request additional time in which to repay loans, may request further
loans, or may seek to restructure its obligations to reduce interest rates
or outstanding principal. There is no legal process for collecting
sovereign and quasi-sovereign debt that a government does not pay, nor are
there bankruptcy proceedings through which all or part of the sovereign
debt that a governmental entity has not repaid may be
collected; |
• |
|
U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of the
fund’s
investments; |
• |
|
U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may cause
the market value of U.S. Treasury obligations to decline;
and |
• |
|
Valuation risk arises because the
securities held by the fund may be priced by an independent pricing
service and may also be priced using dealer quotes or fair valuation
methodologies in accordance with valuation procedures adopted by the
fund’s Board. The prices provided by the independent pricing service or
dealers or the fair valuations may be different from the prices used by
other mutual funds or from the prices at which securities are actually
bought and sold. |
Performance
| The
bar chart that follows illustrates annual fund returns for the periods ended
December 31. The table that follows compares the fund’s returns for various
periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
The Class I shares of the fund have adopted the performance history and
financial statements of the Institutional Class shares of the fund’s
predecessor. Each of the fund’s share classes is invested in the same portfolio
of securities, and the annual returns would have differed only to the extent
that the classes do not have the
|
| |
80 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND
FUND | 4.26.2024
same
sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During 10 year period (Class
I shares): |
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
6.88% |
|
December 31, 2023 |
|
|
| |
Worst Quarter |
|
| |
(5.66)% |
|
March 31,
2022 |
|
|
|
|
|
|
|
|
|
| |
|
Average annual total returns (for the
periods ended December 31, 2023): |
|
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
| |
Class I
– Before Taxes |
|
2/23/01 |
|
5.41% |
|
2.24% |
|
2.14% |
|
|
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
3.76% |
|
1.02% |
|
1.07% |
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
3.17% |
|
1.21% |
|
1.18% |
|
|
|
|
|
|
| |
Class A
– Before Taxes |
|
11/20/17 |
|
1.13% |
|
1.05% |
|
| |
1.05% |
|
|
|
|
| |
Class C
– Before Taxes |
|
11/20/17 |
|
4.22% |
|
1.05% |
|
| |
0.91% |
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
11/20/17 |
|
5.50% |
|
2.26% |
|
| |
2.11% |
Index (reflects no deduction
for fees, expenses or taxes) |
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(From Inception Date of Class A,
Class C and Class R‑6 Shares) |
|
|
|
|
| |
Bloomberg U.S. Aggregate Bond Index |
|
| |
5.53% |
|
1.10% |
|
1.81% |
|
0.97% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
|
| |
| |
rjinvestmentmanagement.com | 81 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE BOND FUND | 4.26.2024
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Scout Investments, Inc., through
its Reams Asset Management division, serves as the subadviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead
Portfolio Manager of the fund and Todd C. Thompson, CFA® and Clark W. Holland,
CFA®, have served as
Portfolio Co‑Managers of the fund since the fund’s inception in 2017. Jason J.
Hoyer, CFA®, has served
as Portfolio Co‑Manager of the fund since April 2018. Tilak “Dimitri” Silva,
CFA®, has served as
Portfolio Co-Manager of the fund since March 2021. Neil Aggarwal has served as
Portfolio Co-Manager of the fund since March 2023. Messrs. Egan, Thompson,
Holland, Hoyer, Silva and Aggarwal are jointly and primarily responsible for the
day‑to‑day management of the fund. Mr. Egan served as the Lead Portfolio
Manager of the fund’s predecessor and Mr. Thompson served as Portfolio
Co‑Manager of the fund’s predecessor from its inception in 2001 to 2017. Mr.
Holland served as Portfolio Co‑Manager of the fund’s predecessor from 2014 to
2017.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
82 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE PLUS BOND
FUND | 4.26.2024
Investment objective |
The Carillon Reams Core Plus Bond Fund (“Core Plus Bond Fund” or
the “fund”) seeks a high level of total return consistent with the preservation
of capital.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Core Plus Bond Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
You may
qualify for sales discounts if you and your family invest, or agree to invest in
the future, at least $25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
3.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees |
|
0.40% |
|
0.40% |
|
0.40% |
|
0.40% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.25% |
|
0.25% |
|
0.24% |
|
0.17% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
0.90% |
|
1.65% |
|
0.64% |
|
0.57% |
|
|
|
| |
Fee Waiver and/or Expense
Reimbursement (b) |
|
(0.10)% |
|
(0.10)% |
|
(0.14)% |
|
(0.17)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
0.80% |
|
1.55% |
|
0.50% |
|
0.40% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 0.80%, Class C – 1.55%, Class I –
0.50% and Class R-6 – 0.40%. This expense limitation excludes
interest, taxes, brokerage commissions, short sale dividend and interest
expenses, costs relating to investments in other investment companies (acquired
fund fees and expenses), dividends, and extraordinary expenses. The contractual
fee waivers can be changed only with the approval of a majority of the fund’s
Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
|
| |
| |
rjinvestmentmanagement.com | 83 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE PLUS BOND
FUND | 4.26.2024
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$454 |
|
$642 |
|
$845 |
|
$1,432 |
Class C |
|
$258 |
|
$511 |
|
$888 |
|
$1,946 |
Class I |
|
$51 |
|
$191 |
|
$343 |
|
$785 |
Class R‑6 |
|
$41 |
|
$166 |
|
$301 |
|
$697 |
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 532% of the average value of its
portfolio.
Principal investment strategies
| Under normal
circumstances, the fund invests at least 80% of its net assets in bonds of
varying maturities, including mortgage- and asset-backed securities. The
bonds in which the fund may invest also include other fixed income instruments
such as debt securities, to-be-announced securities, collateralized loan
obligations (“CLOs”) and other similar instruments issued by various U.S. and
non-U.S. public- or private-sector entities. The fund invests primarily in
investment grade securities, but may also invest up to 25% of its assets in
non‑investment grade securities, also known as high yield securities or
“junk” bonds. If an investment held by the fund that is downgraded below
investment grade causes the fund to exceed this limit, the fund may either sell
or may continue to hold the security. Investment grade securities include
securities rated in one of the four highest rating categories by a nationally
recognized statistical rating organization, such as BBB‑ or higher by
Standard & Poor’s Financial Services LLC (“S&P®”). In addition, the
fund may purchase or sell securities on a when-issued, delayed delivery or
forward commitment basis. Foreign securities will generally be U.S. dollar
denominated, but the fund may also invest in securities denominated in
foreign currencies. Mortgage-backed securities are pools of mortgage loans
that are assembled as securities for sale to investors by various governmental,
government-related and private organizations. Asset-backed securities are
securities that are secured or “backed” by pools of various types of assets,
such as automobile loans, consumer loans, credit cards and equipment leases, on
which cash payments are due at fixed intervals over set periods of time. CLOs
are a type of securitized debt, ordinarily issued by a trust or other special
purpose entity, and are typically collateralized by a pool of loans, which may
include, among others, domestic and foreign senior secured loans, senior
unsecured loans, and subordinate corporate loans, including loans that may be
rated below investment grade. The fund may invest in fixed income securities
with call features.
The
fund may invest in derivative instruments, such as options (including options on
futures contracts), futures contracts (including interest rate, bond, U.S.
Treasury and fixed income index futures contracts), currency and other forwards,
including non-deliverable forwards (“NDFs”), and swap agreements (including
credit default swaps) subject to applicable law and any other restrictions
described in the fund’s Prospectus or Statement of Additional Information
(“SAI”). The fund’s investment in credit default swap agreements may
include both single-name credit default swap agreements and credit default swap
index products, such as CDX index products. The use of these derivative
transactions may allow the fund to obtain net long or short exposures to select
currencies, interest rates, countries, durations or credit risks. These
derivatives may be used to enhance fund returns, increase liquidity, manage the
duration of the fund’s portfolio and/or gain exposure to certain instruments or
markets (i.e., the corporate bond
market) in a more efficient or less expensive way. The credit default swap
agreements that the fund invests in may provide exposure to an index of
securities representative of the entire investment grade and high yield fixed
income markets, which can include underlying issuers rated as low as CCC by
S&P®. Derivative
instruments that provide exposure to bonds may be used to satisfy the fund’s 80%
investment policy. For the purposes of the fund’s 80% investment policy, the
fund’s derivatives investments, other than credit default swaps where the fund
is a protection seller, are valued at market value. Credit default swaps where
the fund is a protection seller are valued at notional
value.
The
portfolio management team attempts to maximize total return over a long-term
horizon through opportunistic investing in a broad array of eligible
securities. The investment process combines top‑down interest rate
management with bottom‑up fixed income security selection, focusing on
undervalued issues in the fixed income market. The portfolio management
team first establishes the portfolio’s duration, or interest rate sensitivity.
The portfolio management team determines whether the fixed income market is
under-or over-priced by comparing current real interest rates (the nominal rates
on U.S. Treasury securities less the investment adviser’s estimate of inflation)
to historical real interest rates. If the current real interest rate is higher
than historical norms, the market is considered undervalued and the portfolio
management team will manage the portfolio with a duration greater than the
benchmark. Duration is a measure used to determine the sensitivity of a
security’s price to changes in interest rates. The longer a security’s duration,
the more sensitive it will be to changes in interest rates. If the current
real interest rate is less than historical norms, the market is considered
overvalued and the portfolio management team will run a defensive portfolio by
managing the portfolio with a duration less than the benchmark. The
portfolio management team normally structures the fund so that the overall
portfolio has a duration of less than eight years based on market
conditions. For purposes of calculating the fund’s portfolio duration, the
fund includes the effect of the derivative instruments held by the
fund.
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The
portfolio management team then considers sector exposures. Sector exposure
decisions are made on both a top‑down and bottom‑up basis. A bottom‑up
issue selection process is the major determinant of sector exposure, as the
availability of attractive securities in each sector determines their
underweighting or overweighting in the fund subject to sector exposure
constraints. However, for the more generic holdings in the fund, such as
agency notes and pass-through mortgage backed securities, top‑down
considerations will drive the sector allocation process on the basis of overall
measurements of sector value such as yield spreads or price
levels.
Once
the portfolio management team has determined an overall market strategy, the
portfolio management team selects the most attractive fixed income securities
for the fund. The portfolio managers screen hundreds of securities to determine
how each will perform in various interest rate environments. The portfolio
managers construct these scenarios by considering the outlook for interest
rates, fundamental credit analysis and option-adjusted spread analysis. The
portfolio managers compare these investment opportunities and assemble the
fund’s portfolio from the best available values. The portfolio management team
constantly monitors the expected returns of the securities in the fund versus
those available in the market and of other securities the investment adviser is
considering for purchase. The portfolio management team’s strategy is to replace
securities that it feels are approaching fair market value with those that,
according to its analysis, are significantly undervalued. As a result of this
strategy, the fund’s portfolio turnover rate will vary from year to year
depending on market conditions and the fund may engage in frequent and active
trading.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The values of most debt securities held by the fund may
be affected by changing interest rates and by changes in the effective
maturities and credit ratings of these securities. For example, the values of
debt securities in the fund’s portfolio generally will decline when interest
rates rise and increase when interest rates fall. As a result, the fund’s net
asset value (“NAV”) may also increase and decrease. An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across
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various
markets or decrease confidence in the markets. Additionally, high public debt in
the U.S. and other countries creates ongoing systemic and market risks and
policymaking uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit the fund’s ability to pursue its investment strategies or
make certain investments, or may make it more costly for the fund to operate,
which may impact performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities or derivatives, will
move in the opposite direction to movements in interest rates. Generally
the value of investments with interest rate risk will fall when interest
rates rise. Factors including central bank monetary policy, rising
inflation rates, and changes in general economic conditions may cause
interest rates to rise, perhaps significantly and/or rapidly, potentially
resulting in substantial losses to the fund. It is difficult to predict
the pace at which interest rates might increase or decrease, or the
timing, frequency, or magnitude of such changes. The effect of increasing
interest rates is more pronounced for any intermediate- or longer-term
fixed income obligations owned by the fund. For example, if a bond has a
duration of eight years, a 1% increase in interest rates could be expected
to result in an 8% decrease in the value of the bond. Interest rates may
rise, perhaps significantly and/ or rapidly, potentially resulting in
substantial losses to the fund due to, among other factors, a decline in
the value of the fund’s fixed income securities, heightened volatility in
the fixed income markets and the reduced liquidity of certain fixed income
investments. Conversely, during periods of very low or negative interest
rates, the fund may be unable to maintain positive returns or pay
dividends to fund
shareholders; |
• |
|
Credit risk arises if an issuer or a
counterparty, in the case of a derivatives contract, is unable or
unwilling, or is perceived as unable or unwilling, to meet its financial
obligations or goes
bankrupt; |
• |
|
Callable securities risk arises from the
fact that the fund may invest in fixed-income securities with call
features. A call feature allows the issuer of the security to redeem or
call the security prior to its stated maturity date. In periods of falling
interest rates, issuers may be more likely to call in securities that are
paying higher coupon rates than prevailing interest rates. In the event of
a call, the fund would lose the income that would have been earned to
maturity on that security, and the proceeds received by the fund may be
invested in securities paying lower coupon rates and may not benefit from
any increase in value that might otherwise result from declining interest
rates; |
• |
|
Collateralized loan obligations (“CLOs”)
risk is the risk that CLOs may expose the fund to heightened credit
risk, interest rate risk, liquidity risk, market risk and prepayment and
extension risk. In addition to these risks, CLOs may also carry additional
risks including, but not limited to: (i) the possibility that
distributions from collateral securities will not be adequate for the CLO
to make interest or other payments; (ii) the risk that the quality of the
collateral may decline in value or default; (iii) the risk that the fund
may invest in classes of CLOs that are subordinate to other classes; (iv)
the risk that the complex structure of the security may not be fully
understood at the time of investment and may produce disputes with the
issuer or unexpected investment results; and (v) the possibility that the
CLO’s manager may perform poorly. CLOs may charge management and other
administrative fees, which are in addition to those of the fund. CLOs may
be difficult to value and may be highly leveraged, which could make them
highly volatile; |
• |
|
Counterparty risk is the risk that a
party or participant to a transaction, such as a broker or a derivative
counterparty, will be unwilling or unable to satisfy its obligation to
make timely principal, interest or settlement payments or to otherwise
honor its obligations to the
fund; |
• |
|
Credit ratings risk is the risk
associated with the fact that ratings by nationally recognized rating
agencies generally represent the agencies’ opinion of the credit quality
of an issuer and may prove to be
inaccurate; |
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• |
|
Currency risk is the risk related to the
fund’s exposure to foreign currencies through its investments. Foreign
currencies may fluctuate significantly over short periods of time, may be
affected unpredictably by intervention, or the failure to intervene, of
the U.S. or foreign governments or central banks, and may be affected by
currency controls or political developments in the U.S. or abroad. Foreign
currencies may also decline in value relative to the U.S. dollar and other
currencies and thereby affect the fund’s
investments; |
• |
|
Derivatives, such as swap agreements
(including credit default swaps and credit default swap index products),
options (including options on futures contracts), futures (including
interest rate futures, bond futures, U.S. Treasury futures and fixed
income index futures) or currency and other forwards, including NDFs, may
involve greater risks than if the fund had invested in the reference
obligation directly. Derivatives are subject to general market risks,
liquidity risks, interest rate risks, and credit risks. Derivatives also
present counterparty risk (i.e., the risk that the other party to the
transaction will fail to perform). Derivatives involve an increased risk
of mispricing or improper valuation of the derivative instrument, and
imperfect correlation between the value of the derivative and the
underlying instrument, in which case the fund may not realize the intended
benefits. When used for hedging, changes in the value of the derivative
may also not correlate perfectly with the underlying asset, rate or index.
Derivatives can cause the fund to participate in losses (as well as gains)
in an amount that significantly exceeds the fund’s initial investment. The
derivatives market may be subject to additional regulations in the
future. |
Swap
Agreements. Swaps can
involve greater risks than a direct investment in an underlying asset because
swaps typically include a certain amount of embedded leverage. If swaps are used
as a hedging strategy, the fund is subject to the risk that the hedging strategy
may not eliminate the risk that it is intended to offset, due to, among other
reasons, the occurrence of unexpected price movements or the non‑occurrence of
expected price movements. Swaps also may be difficult to value. Swaps may be subject to
counterparty risk, credit risk and liquidity risk, especially when traded
over-the counter. In addition to these risks, credit default swaps are subject
to the risks associated with the purchase and sale of credit
protection;
Futures and Forward
Contracts. Futures and forward contracts, including NDFs, are
subject to counterparty risk, credit risk and liquidity risk. There may at times
be an imperfect correlation between the movement in the prices of futures
contracts and the value of their underlying instruments or indexes. There are no
limitations on daily price movements of forward contracts. There can be no
assurance that any strategy used will succeed. Not all forward contracts,
including NDFs, require a counterparty to post collateral, which may expose the
fund to greater losses in the event of a default by a counterparty. There can be
no assurance that, at all times, a liquid market will exist for offsetting a
futures contract that the fund has previously bought or sold and this may result
in the inability to close a futures contract when desired. Forward currency
transactions include the risks associated with fluctuations in currency.
Interest rate, bond and Treasury futures contracts expose the fund to price
fluctuations resulting from changes in interest rates. The fund could suffer a
loss if interest rates rise after the fund has purchased an interest rate
futures contract or fall after the fund has sold an interest rate futures
contract. Similarly, bond and Treasury futures contracts expose the fund to
potential losses if interest rates do not move as expected. Fixed income index
futures contracts expose the fund to volatility in an underlying securities
index;
Options. In order for a call option to be profitable,
the market price of the underlying security or index must rise sufficiently
above the call option exercise price to cover the premium and transaction costs.
These costs will reduce any profit that might otherwise have been realized had
the fund bought the underlying security instead of the call option. For a put
option to be profitable, the market price of the underlying security or index
must decline sufficiently below the put option’s exercise price to cover the
premium and transaction costs. These costs will reduce any profit the fund might
otherwise have realized from having shorted the declining underlying security by
the premium paid for the put option and by transaction costs. If an option that
the fund has purchased expires unexercised, the fund will experience a loss in
the amount of the premium it paid. If the fund sells a put option, there is a
risk that the fund may be required to buy the underlying asset at a
disadvantageous price. If the fund sells a call option, there is a risk that the
fund may be required to sell the underlying asset at a disadvantageous price. If
the fund sells a call option on an underlying asset that the fund owns and the
underlying asset has increased in value when the call option is exercised, the
fund will be required to sell the underlying asset at the call price and will
not be able to realize any of the underlying asset’s value above the call price.
There can be no guarantee that the use of options will increase the fund’s
return or income. The premium received from writing options may not be
sufficient to offset any losses sustained from exercised options. In addition,
there may be an imperfect correlation between the movement in prices of options
and the securities underlying them, and there may at times not be a liquid
secondary market for options;
Options on futures
contracts. In addition to the risks associated with options
generally, there is a risk of imperfect correlations between the movement in
prices of the option and the futures contract, as well as the futures contract
and the underlying security, which could in turn impact the price of the
option;
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant limitations
on investor rights and recourse; (8) use of unfamiliar corporate
organizational structures; (9) unavailable or unreliable public
information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
Hedging risk is the risk that, if the
fund uses a hedging instrument at the wrong time or judges the market
conditions incorrectly, or the hedged instrument does not correlate to the
risk sought to be hedged, the hedge might be unsuccessful, reduce the
fund’s return, or create a loss. In addition, hedges, even when successful
in mitigating risk, may not prevent the fund from experiencing losses on
its investments. Hedging instruments may also reduce or eliminate gains
that may otherwise have been available had the fund not used the hedging
instruments; |
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• |
|
High-yield security risk results from
investments in below investment grade bonds, which have a greater risk of
loss, are susceptible to rising interest rates and have greater
volatility, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest. High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
• |
|
Income risk is the risk that the fund’s
income could decline due to falling market interest rates. In a falling
interest rate environment, the fund may be required to invest its assets
in lower-yielding
securities; |
• |
|
Issuer risk is the risk that the value of
a security may decline for a reason directly related to the issuer, such
as management performance, financial leverage and reduced demand for the
issuer’s goods or
services; |
• |
|
Leverage risk is the risk that the use of
financial instruments to increase potential returns, including the use of
when-issued, delayed delivery or forward commitment transactions, and
derivatives used for investment (non‑hedging) purposes, may cause the fund
to be more volatile than if it had not been leveraged. The use of
leverage may also accelerate the velocity of losses and can result in
losses to the fund that exceed the amount originally
invested; |
• |
|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
• |
|
Maturity risk is the risk associated with
the fact that the fund will invest in fixed income securities of varying
maturities. Generally, the longer a fixed income security’s maturity, the
greater the interest rate risk. Conversely, the shorter a fixed income
security’s maturity, the lower the
risk; |
• |
|
Mortgage- and asset-backed security risk
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. In a to‑be‑announced (“TBA”) mortgage-backed
transaction, the fund and the seller agree upon the issuer, interest rate
and terms of the underlying mortgages. However, the seller does not
identify the specific underlying mortgages until it issues the security.
TBA mortgage-backed securities increase fund exposure to interest rate
risks because the underlying mortgages may be less favorable than
anticipated by the
fund; |
• |
|
Portfolio turnover risk is the risk that
performance may be adversely affected by the high rate of portfolio
turnover that can be caused by the fund engaging in active and frequent
trading , which generally leads to greater transaction
costs; |
• |
|
Prepayment and extension risk is the risk
that a bond or other fixed-income security or investment might, in the
case of prepayment risk, be called or otherwise converted, prepaid or
redeemed before maturity and, in the case of extension risk, might not be
prepaid as expected. Due to a decline in interest rates or excess cash
flow into the issuer, a debt security may be called or otherwise
converted, prepaid or redeemed before maturity. If this occurs, no
additional interest will be paid on the investment. The fund may have to
reinvest the proceeds in another investment at a lower rate, may not
benefit from an increase in value that may result from declining interest
rates, and may lose any premium it paid to acquire the security, any of
which could result in a reduced yield to the fund. The rate of prepayments
tends to increase as interest rates fall, which could cause the average
maturity of the portfolio to shorten. Conversely, extension risk is the
risk that a decrease in prepayments may, as a result of higher interest
rates or other factors, result in the extension of a security’s effective
maturity, increase the risk of default or delayed payment, heighten
interest rate risk and increase the potential for a decline in its price.
In addition, as a consequence of a decrease in prepayments, the amount of
principal available to the fund for investment would be reduced.
Extensions of obligations could cause the fund to exhibit additional
volatility and hold securities paying lower-than-market rates of interest,
which could hurt the fund’s
performance; |
• |
|
Redemption risk is the risk that, due to
a rise in interest rates or other changing government policies that may
cause investors to move out of fixed income securities on a large scale,
the fund may experience periods of heavy redemptions that could cause the
fund to sell assets at inopportune times or at a loss or depressed
value; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially; |
• |
|
Sovereign and quasi-sovereign debt risk
is that risk that such debt securities are subject to risk of payment
delays or defaults due to, among other things: (1) country cash flow
problems, (2) insufficient foreign currency reserves, (3) political
considerations, (4) large debt positions relative to the country’s
economy, (5) policies toward foreign lenders or investors, (6) the failure
to implement economic reforms required by the International Monetary Fund
or other multilateral agencies, or (7) an inability or unwillingness to
repay debts. A governmental entity that defaults on an obligation may
request additional time in which to repay loans, may request further
loans, or may seek to restructure its obligations to reduce interest rates
or outstanding principal. There is no legal process for collecting
sovereign and quasi-sovereign debt that a government does not pay, nor are
there bankruptcy proceedings through which all or part of the sovereign
debt that a governmental entity has not repaid may be
collected; |
• |
|
U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation
(“Freddie Mac”), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is
possible |
|
| |
88 | rjinvestmentmanagement.com |
|
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Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE PLUS BOND
FUND | 4.26.2024
|
that
the U.S. government and government-sponsored enterprises will not be able
to meet their payment obligations in the future, which would adversely
affect the value of the fund’s
investments; |
• |
|
U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may cause
the market value of U.S. Treasury obligations to decline;
and |
• |
|
Valuation risk arises because the
securities held by the fund may be priced by an independent pricing
service and may also be priced using dealer quotes or fair valuation
methodologies in accordance with valuation procedures adopted by the
fund’s Board. The prices provided by the independent pricing service or
dealers or the fair valuations may be different from the prices used by
other mutual funds or from the prices at which securities are actually
bought and sold. |
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
The Class I shares of the fund have adopted the performance history and
financial statements of the Institutional Class shares of the fund’s
predecessor. Each of the fund’s share classes is invested in the same portfolio
of securities, and the annual returns would have differed only to the extent
that the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
|
|
| |
During
10 year period (Class I shares): |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Return |
|
Quarter Ended |
|
|
| |
Best Quarter |
|
| |
8.79% |
|
June 30,
2020 |
|
|
| |
Worst Quarter |
|
| |
(6.07)% |
|
June 30,
2022 |
|
|
|
|
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
Fund return (after deduction of sales
charges and expenses) |
|
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
|
| |
Class I
– Before Taxes |
|
11/25/96 |
|
6.27% |
|
3.01% |
|
2.53% |
|
|
| |
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
4.39% |
|
1.46% |
|
1.23% |
|
|
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
3.67% |
|
1.68% |
|
1.38% |
|
|
| |
|
|
|
|
| |
Class A
– Before Taxes |
|
11/20/17 |
|
1.86% |
|
1.80% |
|
| |
|
1.58% |
|
|
|
|
|
| |
Class C
– Before Taxes |
|
11/20/17 |
|
5.06% |
|
1.84% |
|
| |
|
1.47% |
|
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
11/20/17 |
|
6.23% |
|
3.01% |
|
| |
|
2.64% |
|
|
| |
| |
rjinvestmentmanagement.com | 89 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS CORE PLUS BOND
FUND | 4.26.2024
|
|
|
|
|
|
|
|
|
| |
Index (reflects no deduction for fees,
expenses or taxes) |
|
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10‑yr |
|
Lifetime
(From Inception Date of Class A, Class C and Class R‑6 Shares) |
|
|
|
|
| |
Bloomberg U.S. Aggregate Bond Index |
|
| |
5.53% |
|
1.10% |
|
1.81% |
|
0.97% |
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Scout Investments, Inc., through
its Reams Asset Management division, serves as the subadviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead
Portfolio Manager of the fund and Todd C. Thompson, CFA® and Clark W. Holland,
CFA®, have served as
Portfolio Co‑Managers of the fund since the fund’s inception in 2017. Jason J.
Hoyer, CFA®, has served
as Portfolio Co‑Manager of the fund since April 2018. Tilak “Dimitri” Silva,
CFA®, has served as
Portfolio Co-Manager of the fund since March 2021. Neil Aggarwal has served as
Portfolio Co-Manager of the fund since March 2023. Messrs. Egan, Thompson,
Holland, Hoyer, Silva and Aggarwal are jointly and primarily responsible for the
day‑to‑day management of the fund. Mr. Egan served as the Lead Portfolio
Manager of the fund’s predecessor from its inception in 1996 to 2017. Messrs.
Thompson and Holland served as Portfolio Co‑Managers of the fund’s predecessor
from 2000 and 2014, respectively, to 2017.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
| |
90 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
Investment objective |
The Carillon Reams Unconstrained Bond Fund (“Unconstrained Bond
Fund” or the “fund”) seeks to maximize total return consistent with the
preservation of capital.
Fees and expenses of the fund |
The tables that follow describe the fees and expenses that you may
pay if you buy, hold, and sell shares of the Unconstrained Bond Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below. You may qualify for sales discounts if you
and your family invest, or agree to invest in the future, at least
$25,000 in the Class A shares of
the Carillon Family of Funds. More information about these and other discounts,
including through specific financial intermediaries, is available from your
financial professional, on page 138 of the fund’s Prospectus and on page 69 of
the fund’s Statement of Additional
Information.
|
|
|
|
|
|
|
| |
Shareholder fees (fees paid directly from
your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) |
|
3.75% |
|
None |
|
None |
|
None |
|
|
|
| |
Maximum Deferred Sales Charge (as a % of
original purchase price or redemption proceeds, whichever is lower) |
|
None (a) |
|
1.00% (a) |
|
None |
|
None |
|
|
|
| |
Redemption Fee |
|
None |
|
None |
|
None |
|
None |
|
|
Annual
fund operating expenses (expenses that you pay each year as a
percentage of the value of your investment): |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Management Fees (b) |
|
0.50% |
|
0.50% |
|
0.50% |
|
0.50% |
|
|
|
| |
Distribution and Service (12b‑1) Fees |
|
0.25% |
|
1.00% |
|
0.00% |
|
0.00% |
|
|
|
| |
Other Expenses |
|
0.24% |
|
0.25% |
|
0.26% |
|
0.16% |
|
|
|
| |
Total Annual Fund Operating Expenses |
|
0.99% |
|
1.75% |
|
0.76% |
|
0.66% |
|
|
|
| |
Fee Waiver and/or Expense Reimbursement
(c) |
|
(0.09)% |
|
(0.10)% |
|
(0.16)% |
|
(0.16)% |
|
|
|
| |
Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement |
|
0.90% |
|
1.65% |
|
0.60% |
|
0.50% |
(a) If you purchased $1,000,000 or more of Class A shares of a
Carillon mutual fund that were not otherwise eligible for a sales charge waiver
and sell the shares within 18 months from the date of purchase, you may pay up
to a 1% contingent deferred sales charge (“CDSC”) at the time of sale. If you
sell Class C shares less than one year after purchase, you will pay a 1%
CDSC at the time of sale.
(b) The
Management Fees have been restated to reflect the current contractual fee rate
effective March 1, 2024.
(c) Carillon Tower Advisers, Inc. (“Carillon”) has contractually
agreed to waive its investment advisory fee and/or reimburse certain expenses of
the fund to the extent that annual operating expenses of each class exceed a
percentage of that class’ average daily net assets through April 30,
2025 as follows: Class A – 0.90%, Class C – 1.65%, Class I –
0.60% and Class R-6 – 0.50%. This expense limitation excludes
interest, taxes, brokerage commissions, short sale dividend and interest
expenses, costs relating to investments in other investment companies (acquired
fund fees and expenses), dividends, and extraordinary expenses. The contractual
fee waivers can be changed only with the approval of a majority of the fund’s
Board of Trustees. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current expense cap or the expense cap in effect at the time of the fee
recoupment.
Expense example |
This example is intended to help you compare the cost of investing
in the fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the fund’s
operating expenses remain the same, except that the example reflects the fee
waiver/expense reimbursement arrangement for each share class through
April 30, 2025. Your costs would be the same whether you sold your shares
or continued to hold them at the end of the period. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
| |
Share
Class |
|
Year 1 |
|
Year 3 |
|
Year 5 |
|
Year 10 |
Class A |
|
$463 |
|
$670 |
|
$893 |
|
$1,535 |
Class C |
|
$268 |
|
$541 |
|
$940 |
|
$2,054 |
Class I |
|
$61 |
|
$227 |
|
$407 |
|
$927 |
Class R-6 |
|
$51 |
|
$195 |
|
$352 |
|
$807 |
|
| |
| |
rjinvestmentmanagement.com | 91 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
Portfolio turnover |
The fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the fund’s
performance. During the most recent fiscal year, the fund’s portfolio turnover
rate was 458% of the average value of its
portfolio.
Principal investment strategies
| The fund pursues its
objective by investing at least 80% of its net assets in fixed income
instruments. The fixed income instruments in which the fund may invest can
be of varying maturities and include bonds, debt securities, mortgage- and
asset-backed securities (including to-be-announced securities), collateralized
loan obligations (“CLOs”) and other similar instruments issued by various U.S.
and non-U.S. public- or private-sector entities. The portfolio duration of the
fund will normally not exceed eight years but may be greater based on market
conditions. The fund may also have a negative duration. Duration is a
measure used to determine the sensitivity of a security’s price to changes in
interest rates. The longer a security’s duration, the more sensitive it will be
to changes in interest rates. A portfolio with negative duration generally
incurs a loss when interest rates and yields fall. For purposes of
calculating the fund’s portfolio duration, the fund includes the effect of the
derivative instruments held by the fund.
In
certain market conditions, the fund may pursue its investment objective by
investing a significant portion of its assets in cash or short-term debt
obligations. The fund may invest in both investment grade securities and
non-investment grade securities, also known as high yield securities or “junk”
bonds. The fund may invest without limitation in non-investment grade
securities. Investment grade securities include securities rated in one of
the four highest rating categories by a nationally recognized statistical rating
organization, such as BBB- or higher by Standard & Poor’s Financial Services
LLC (“S&P®”). The fund may
purchase or sell securities on a when-issued, delayed delivery or forward
commitment basis and may engage in short sales. The fund may without limitation
seek to obtain market exposure to the securities in which it primarily invests
by entering into buybacks or dollar rolls. The fund may also invest without
limitation in securities denominated in foreign currencies and in U.S. dollar
denominated securities of foreign issuers. Mortgage-backed securities are pools
of mortgage loans that are assembled as securities for sale to investors by
various governmental, government-related and private organizations. Asset-backed
securities are securities that are secured or “backed” by pools of various types
of assets, such as automobile loans, consumer loans, credit cards and equipment
leases, on which cash payments are due at fixed intervals over set periods of
time. CLOs are a type of securitized debt, ordinarily issued by a trust or other
special purpose entity, and are typically collateralized by a pool of loans,
which may include, among others, domestic and foreign senior secured loans,
senior unsecured loans, and subordinate corporate loans, including loans that
may be rated below investment grade. The fund may invest in fixed income
securities with call features.
The
fund may invest in derivative instruments, such as options (including options on
futures contracts), futures contracts (including interest rate, bond, U.S.
Treasury and fixed income index futures contracts), currency and other forwards,
including non-deliverable forwards (“NDFs”), and swap agreements (including
credit default swaps) subject to applicable law and any other restrictions
described in the fund’s Prospectus or Statement of Additional Information
(“SAI”). The fund’s investment in credit default swap agreements may
include both single-name credit default swap agreements and credit default swap
index products, such as CDX index products. The use of these derivative
transactions may allow the fund to obtain net long or short exposures to select
currencies, interest rates, countries, durations or credit risks. These
derivatives may be used to enhance fund returns, increase liquidity, manage the
duration of the fund’s portfolio and/or gain exposure to certain instruments or
markets (i.e., the corporate bond
market) in a more efficient or less expensive way. The credit default swap
agreements that the fund invests in may provide exposure to an index of
securities representative of the entire investment grade and high yield fixed
income markets, which can include underlying issuers rated as low as CCC by
S&P®. Derivative
instruments that provide exposure to fixed income instruments may be used to
satisfy the fund’s 80% investment policy. For the purposes of the fund’s 80%
investment policy, the fund’s derivatives investments, other than credit default
swaps where the fund is a protection seller, are valued at market value. Credit
default swaps where the fund is a protection seller are valued at notional
value.
The
portfolio management team attempts to maximize total return by pursuing relative
value opportunities throughout all sectors of the fixed income market. The
portfolio managers screen hundreds of securities to determine how each will
perform in various interest rate environments. The portfolio managers construct
these scenarios by considering the outlook for interest rates, fundamental
credit analysis and option-adjusted spread analysis. The portfolio managers
compare these investment opportunities and assemble the fund’s portfolio from
the best available values. The portfolio management team constantly monitors the
expected returns of the securities in the fund versus those available in the
market and of other securities the portfolio management team is considering for
purchase. The portfolio management team’s strategy is to replace securities that
it feels are approaching fair market value with those that, according to its
analysis, are significantly undervalued. As a result of this strategy, the
fund’s portfolio turnover rate will vary from year to year depending on market
conditions and the fund may engage in frequent and active
trading.
The
fund may invest a substantial portion of its assets (more than 25%) in
securities and instruments that are economically tied to one or more foreign
countries if economic and business conditions warrant such investment. The
fund will invest no more than 50% of its net assets in investments in developing
countries or emerging markets.
The
fund may lend its securities to broker-dealers and other financial institutions
to earn additional income.
|
| |
92 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
Principal risks | The greatest risk of investing in the fund is that you could lose
money. The values of most debt securities held by the fund may
be affected by changing interest rates and by changes in the effective
maturities and credit ratings of these securities. For example, the values of
debt securities in the fund’s portfolio generally will decline when interest
rates rise and increase when interest rates fall. As a result, the fund’s net
asset value (“NAV”) may also increase and decrease. An investment in the fund is not a deposit
with a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Investments in the
fund are subject to the following primary risks. The most significant risks of
investing in the fund as of the date of this Prospectus are listed first below,
followed by the remaining risks in alphabetical order. Each risk summarized
below is considered a “principal risk” of investing in the fund, regardless of
the order in which it appears. Different risks may be more significant at
different times depending on market conditions or other factors.
• |
|
Market risk is the risk that markets may
at times be volatile, and the values of the fund’s holdings may decline,
sometimes significantly and/or rapidly, because of adverse issuer-specific
conditions or general market conditions, including a broad stock market
decline, which are not specifically related to a particular issuer.
Geopolitical and other events, including war, terrorism, economic
uncertainty, trade disputes, pandemics, public health crises, natural
disasters and related events have led, and in the future may continue to
lead, to instability in world economies and markets generally and reduced
liquidity in equity, credit and fixed-income markets, which may disrupt
economies and markets and adversely affect the value of your investment.
Policy changes by the U.S. government and/or Federal Reserve and political
events within the U.S. and abroad, such as changes in the U.S.
presidential administration and Congress, the U.S. government’s inability
at times to agree on a long-term budget and deficit reduction plan, the
threat or occurrence of a federal government shutdown and threats or the
occurrence of a failure to increase the federal government’s debt limit,
which could result in a default on the government’s obligations, may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy, perhaps suddenly and to a significant
degree. These and other conditions may cause broad changes in market
value, the general outlook for corporate earnings, public perceptions
concerning these developments or adverse investment sentiment generally.
Changes in the financial condition of a single issuer, industry or market
segment also can impact the market as a whole. In addition, adverse market
events may lead to increased redemptions, which could cause the fund to
experience a loss when selling securities to meet redemption requests by
shareholders. Adverse market conditions may be prolonged and may not have
the same impact on all types of securities. Conversely, it is also
possible that, during a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Changes in
value may be temporary or may last for extended periods. The financial
markets generally move in cycles, with periods of rising prices followed
by periods of declining prices. The value of your investment may reflect
these
fluctuations. |
Recent market events risk includes risks
arising from current and recent circumstances impacting markets. Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in the fund may be increased.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. It is
difficult to accurately predict the pace at which interest rates might increase
or start decreasing, the timing, frequency or magnitude of any such changes in
interest rates, or when such changes might stop or reverse course. Additionally,
various economic and political factors could cause the Federal Reserve or
another foreign central bank to change their approach in the future and such
actions may result in an economic slowdown in the U.S. and abroad. Unexpected
changes in interest rates could lead to significant market volatility or reduce
liquidity in certain sectors of the
market.
Deteriorating
economic fundamentals may, in turn, increase the risk of default or insolvency
of particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, reduce liquidity across various markets or decrease
confidence in the markets. Additionally, high public debt in the U.S. and other
countries creates ongoing systemic and market risks and policymaking
uncertainty.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; risks associated with a trade
agreement between the United Kingdom and the European Union; the risks
associated with ongoing trade negotiations with China; and the possibility of
changes to some international trade agreements; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities in the Middle
East and between Russia and Ukraine, and any sanctions and related events cannot
be predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of the fund and its investments or
operations could be negatively impacted.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to the fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed
|
| |
| |
rjinvestmentmanagement.com | 93 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
regulations
will be adopted. However, due to the broad scope of the new and proposed
regulations, certain changes could limit the fund’s ability to pursue its
investment strategies or make certain investments, or may make it more costly
for the fund to operate, which may impact
performance.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Certain issuers,
industries and regions may be adversely affected by the impacts of climate
change, including on the demand for and the development of goods and services
and related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate
change;
• |
|
Interest rate risk is the risk that the
value of investments, such as fixed-income securities or derivatives, will
move in the opposite direction to movements in interest rates. Generally
the value of investments with interest rate risk will fall when interest
rates rise. Factors including central bank monetary policy, rising
inflation rates, and changes in general economic conditions may cause
interest rates to rise, perhaps significantly and/or rapidly, potentially
resulting in substantial losses to the fund. It is difficult to predict
the pace at which interest rates might increase or decrease or the timing,
frequency, or magnitude of such changes. The effect of increasing interest
rates is more pronounced for any intermediate- or longer-term fixed income
obligations owned by the fund. For example, if a bond has a duration of
eight years, a 1% increase in interest rates could be expected to result
in an 8% decrease in the value of the bond. Interest rates may rise,
perhaps significantly and/ or rapidly, potentially resulting in
substantial losses to the fund due to, among other factors, a decline in
the value of the fund’s fixed income securities, heightened volatility in
the fixed income markets and the reduced liquidity of certain fixed income
investments. Conversely, during periods of very low or negative interest
rates, the fund may be unable to maintain positive returns or pay
dividends to fund
shareholders; |
• |
|
Credit risk arises if an issuer or a
counterparty, in the case of a derivatives contract, is unable or
unwilling, or is perceived as unable or unwilling, to meet its financial
obligations or goes
bankrupt; |
• |
|
Callable securities risk arises from the
fact that the fund may invest in fixed-income securities with call
features. A call feature allows the issuer of the security to redeem or
call the security prior to its stated maturity date. In periods of falling
interest rates, issuers may be more likely to call in securities that are
paying higher coupon rates than prevailing interest rates. In the event of
a call, the fund would lose the income that would have been earned to
maturity on that security, and the proceeds received by the fund may be
invested in securities paying lower coupon rates and may not benefit from
any increase in value that might otherwise result from declining interest
rates; |
• |
|
Collateralized loan obligations (“CLOs”)
risk is the risk that CLOs may expose the fund to heightened credit
risk, interest rate risk, liquidity risk, market risk and prepayment and
extension risk. In addition to these risks, CLOs may also carry additional
risks including, but not limited to: (i) the possibility that
distributions from collateral securities will not be adequate for the CLO
to make interest or other payments; (ii) the risk that the quality of the
collateral may decline in value or default; (iii) the risk that the fund
may invest in classes of CLOs that are subordinate to other classes; (iv)
the risk that the complex structure of the security may not be fully
understood at the time of investment and may produce disputes with the
issuer or unexpected investment results; and (v) the possibility that the
CLO’s manager may perform poorly. CLOs may charge management and other
administrative fees, which are in addition to those of the fund. CLOs may
be difficult to value and may be highly leveraged, which could make them
highly volatile; |
• |
|
Counterparty risk is the risk that a
party or participant to a transaction, such as a broker or a derivative
counterparty, will be unwilling or unable to satisfy its obligation to
make timely principal, interest or settlement payments or to otherwise
honor its obligations to the
fund; |
• |
|
Credit ratings risk is the risk
associated with the fact that ratings by nationally recognized rating
agencies generally represent the agencies’ opinion of the credit quality
of an issuer and may prove to be
inaccurate; |
• |
|
Currency risk is the risk related to the
fund’s exposure to foreign currencies through its investments. Foreign
currencies may fluctuate significantly over short periods of time, may be
affected unpredictably by intervention, or the failure to intervene, of
the U.S. or foreign governments or central banks, and may be affected by
currency controls or political developments in the U.S. or abroad. Foreign
currencies may also decline in value relative to the U.S. dollar and other
currencies and thereby affect the fund’s
investments; |
• |
|
Derivatives, such as swap agreements
(including credit default swaps and credit default swap index products),
options (including options on futures contracts), futures (including
interest rate futures, bond futures, U.S. Treasury futures and fixed
income index futures) or currency and other forwards, including NDFs, may
involve greater risks than if the fund had invested in the reference
obligation directly. Derivatives are subject to general market risks,
liquidity risks, interest rate risks, and credit risks. Derivatives also
present counterparty risk (i.e., the risk that the other party to the
transaction will fail to perform). Derivatives involve an increased risk
of mispricing or improper valuation of the derivative instrument, and
imperfect correlation between the value of the derivative and the
underlying instrument, in which case the fund may not realize the intended
benefits. When used for hedging, changes in the value of the derivative
may also not correlate perfectly with the underlying asset, rate or index.
Derivatives can cause the fund to participate in losses (as well as gains)
in an amount that significantly exceeds the fund’s initial investment. The
derivatives market may be subject to additional regulations in the
future. |
Swap Agreements.
Swaps can involve greater risks than a direct investment in an
underlying asset because swaps typically include a certain amount of embedded
leverage. If swaps are used as a hedging strategy, the fund is subject to the
risk that the hedging strategy may not eliminate the risk that it is intended to
offset, due to, among other reasons, the occurrence of unexpected price
movements or the non‑occurrence of expected price movements. Swaps also may be
difficult to value. Swaps may be subject to counterparty risk, credit risk and
liquidity risk, especially when traded over-the-counter. In addition to these
risks, credit default swaps are subject to the risks associated with the
purchase and sale of credit protection;
Futures and Forward
Contracts. Futures and forward contracts, including NDFs, are
subject to counterparty risk, credit risk and liquidity risk. There may at times
be an imperfect correlation between the movement in the prices of futures
contracts and the value of their underlying instruments or indexes. There are no
limitations on daily price movements of forward contracts. There can be no
assurance that any strategy used will succeed. Not all forward contracts,
including NDFs, require a counterparty to post collateral, which may expose the
fund to greater losses in the
|
| |
94 | rjinvestmentmanagement.com |
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|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
event
of a default by a counterparty. There can be no assurance that, at all times, a
liquid market will exist for offsetting a futures contract that the fund has
previously bought or sold and this may result in the inability to close a
futures contract when desired. Forward currency transactions include the risks
associated with fluctuations in currency. Interest rate, bond and Treasury
futures contracts expose the fund to price fluctuations resulting from
changes in interest rates. The fund could suffer a loss if interest rates rise
after the fund has purchased an interest rate futures contract or fall
after the fund has sold an interest rate futures contract. Similarly, bond
and Treasury futures contracts expose the fund to potential losses if interest
rates do not move as expected. Fixed income index futures contracts expose the
fund to volatility in an underlying securities index;
Options.
In order for a call option to be profitable, the market price of
the underlying security or index must rise sufficiently above the call option
exercise price to cover the premium and transaction costs. These costs will
reduce any profit that might otherwise have been realized had the fund bought
the underlying security instead of the call option. For a put option to be
profitable, the market price of the underlying security or index must decline
sufficiently below the put option’s exercise price to cover the premium and
transaction costs. These costs will reduce any profit the fund might otherwise
have realized from having shorted the declining underlying security by the
premium paid for the put option and by transaction costs. If an option that the
fund has purchased expires unexercised, the fund will experience a loss in the
amount of the premium it paid. If the fund sells a put option, there is a risk
that the fund may be required to buy the underlying asset at a disadvantageous
price. If the fund sells a call option, there is a risk that the fund may be
required to sell the underlying asset at a disadvantageous price. If the fund
sells a call option on an underlying asset that the fund owns and the underlying
asset has increased in value when the call option is exercised, the fund will be
required to sell the underlying asset at the call price and will not be able to
realize any of the underlying asset’s value above the call price. There can be
no guarantee that the use of options will increase the fund’s return or income.
The premium received from writing options may not be sufficient to offset any
losses sustained from exercised options. In addition, there may be an imperfect
correlation between the movement in prices of options and the securities
underlying them, and there may at times not be a liquid secondary market for
options;
Options on futures
contracts. In addition to the risks associated with options
generally, there is a risk of imperfect correlations between the movement in
prices of the option and the futures contract, as well as the futures contract
and the underlying security, which could in turn impact the price of the
option;
• |
|
Emerging markets are generally smaller,
less developed, less liquid and more volatile than the securities markets
of the U.S. and other foreign developed markets. There are also risks of:
greater political uncertainties; an economy’s dependence on revenues from
particular commodities or on international aid or development assistance;
currency transfer restrictions; a limited number of potential buyers for
such securities; delays and disruptions in securities settlement
procedures; less stringent, or a lack of, accounting, auditing, financial
reporting and recordkeeping requirements or standards; and significant
limitations on investor rights and recourse. The governments of emerging
market countries may also be more unstable. There may be less publicly
available information about issuers in emerging markets. When investing in
emerging markets, the risks of investing in foreign securities are
heightened; |
• |
|
Foreign securities risks, which are
potential risks not associated with U.S. investments, include, but are not
limited to: (1) currency exchange rate fluctuations; (2) political
and financial instability; (3) less liquidity; (4) lack of uniform
accounting, auditing and financial reporting standards; (5) increased
volatility; (6) less government regulation and supervision of foreign
stock exchanges, brokers and listed companies; (7) significant limitations
on investor rights and recourse; (8) use of unfamiliar corporate
organizational structures; (9) unavailable or unreliable public
information regarding issuers; and (10) delays in transaction
settlement in some foreign markets. The unavailability and/or
unreliability of public information available may impede the fund’s
ability to accurately evaluate foreign securities. Moreover, it may be
difficult to enforce contractual obligations or invoke judicial or
arbitration processes against non‑U.S. companies and non‑U.S. persons in
foreign jurisdictions. The risks associated with investments in
governmental or quasi-governmental entities of a foreign country are
heightened by the potential for unexpected governmental change and
inadequate government
oversight; |
• |
|
Hedging risk is the risk that, if the
fund uses a hedging instrument at the wrong time or judges the market
conditions incorrectly, or the hedged instrument does not correlate to the
risk sought to be hedged, the hedge might be unsuccessful, reduce the
fund’s return, or create a loss. In addition, hedges, even when successful
in mitigating risk, may not prevent the fund from experiencing losses on
its investments. Hedging instruments may also reduce or eliminate gains
that may otherwise have been available had the fund not used the hedging
instruments; |
• |
|
High-yield security risk results from
investments in below investment grade bonds, which have a greater risk of
loss, are susceptible to rising interest rates and have greater
volatility, especially when the economy is weak or expected to become
weak. Investments in high-yield securities (commonly referred to as “junk
bonds”) are inherently speculative and carry a greater risk that the
issuer will default on the timely payment of principal and interest. High
yield securities carry greater levels of call risk, credit risk and
liquidity risk; |
• |
|
Income risk is the risk that the fund’s
income could decline due to falling market interest rates. In a falling
interest rate environment, the fund may be required to invest its assets
in lower-yielding
securities; |
• |
|
Issuer risk is the risk that the value of
a security may decline for a reason directly related to the issuer, such
as management performance, financial leverage and reduced demand for the
issuer’s goods or
services; |
• |
|
Leverage risk is the risk that the use of
financial instruments to increase potential returns, including the use of
buybacks, dollar rolls, when-issued, delayed delivery or forward
commitment transactions, and derivatives used for investment (non-hedging)
purposes, may cause the fund to be more volatile than if it had not been
leveraged. The use of leverage may also accelerate the velocity of losses
and can result in losses to the fund that exceed the amount originally
invested; |
• |
|
Liquidity risk is the possibility that
trading activity in certain securities may, at times, be significantly
hampered. The fund could lose money if it cannot sell a security at the
time and price that would be most beneficial to the fund. The fund may be
required to dispose of investments at unfavorable times or prices to
satisfy obligations, which may result in losses or may be costly to the
fund. Market prices for such securities may be
volatile; |
|
| |
| |
rjinvestmentmanagement.com | 95 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
• |
|
Market timing risk arises because certain
types of securities in which the fund invests, including high-yield and
foreign securities, could cause the fund to be at greater risk of market
timing activities by fund shareholders. Such activities can dilute the
fund’s NAV, increase the fund’s expenses and interfere with the fund’s
ability to execute efficient investment
strategies; |
• |
|
Maturity risk is the risk associated with
the fact that the fund will invest in fixed income securities of varying
maturities. Generally, the longer a fixed income security’s maturity, the
greater the interest rate risk. Conversely, the shorter a fixed income
security’s maturity, the lower the
risk; |
• |
|
Mortgage- and asset-backed security risk
arises from the potential for mortgage failure, particularly during
periods of market downturn, premature repayment of principal, or a delay
in the repayment of principal, and can increase in an unstable or
depressed housing market. In a to‑be‑announced (“TBA”) mortgage-backed
transaction, the fund and the seller agree upon the issuer, interest rate
and terms of the underlying mortgages. However, the seller does not
identify the specific underlying mortgages until it issues the security.
TBA mortgage-backed securities increase fund exposure to interest rate
risks because the underlying mortgages may be less favorable than
anticipated by the
fund; |
• |
|
Portfolio turnover risk is the risk that
performance may be adversely affected by the high rate of portfolio
turnover that can be caused by the fund engaging in active and frequent
trading, which generally leads to greater transaction
costs; |
• |
|
Prepayment and extension risk is the risk
that a bond or other fixed-income security or investment might, in the
case of prepayment risk, be called or otherwise converted, prepaid or
redeemed before maturity and, in the case of extension risk, might not be
prepaid as expected. Due to a decline in interest rates or excess cash
flow into the issuer, a debt security may be called or otherwise
converted, prepaid or redeemed before maturity. If this occurs, no
additional interest will be paid on the investment. The fund may have to
reinvest the proceeds in another investment at a lower rate, may not
benefit from an increase in value that may result from declining interest
rates, and may lose any premium it paid to acquire the security, any of
which could result in a reduced yield to the fund. The rate of prepayments
tends to increase as interest rates fall, which could cause the average
maturity of the portfolio to shorten. Conversely, extension risk is the
risk that a decrease in prepayments may, as a result of higher interest
rates or other factors, result in the extension of a security’s effective
maturity, increase the risk of default or delayed payment, heighten
interest rate risk and increase the potential for a decline in its price.
In addition, as a consequence of a decrease in prepayments, the amount of
principal available to the fund for investment would be reduced.
Extensions of obligations could cause the fund to exhibit additional
volatility and hold securities paying lower-than-market rates of interest,
which could hurt the fund’s
performance; |
• |
|
Redemption risk is the risk that, due to
a rise in interest rates or other changing government policies that may
cause investors to move out of fixed income securities on a large scale,
the fund may experience periods of heavy redemptions that could cause the
fund to sell assets at inopportune times or at a loss or depressed
value; |
• |
|
Securities lending risk is the risk that,
if the fund lends its portfolio securities and receives collateral in the
form of cash that is reinvested in securities, those securities may not
perform sufficiently to cover the return collateral payments owed to
borrowers. In addition, delays may occur in the recovery of securities
from borrowers, which could interfere with the fund’s ability to vote
proxies or to settle transactions and there may be a loss of rights in the
collateral should the borrower fail
financially; |
• |
|
Short sale risk is the risk that the fund
will incur a loss due to a short position if the price of the instrument
sold short increases in value between the date of the short sale and the
date on which an offsetting position is purchased. Short sales have the
potential to lose more money than the actual cost of the investment. Also,
there is a risk that the third party to the short sale may fail to honor
its contract terms, causing a loss to the
fund; |
• |
|
Sovereign and quasi-sovereign debt risk
is that risk that such debt securities are subject to risk of payment
delays or defaults due to, among other things: (1) country cash flow
problems, (2) insufficient foreign currency reserves, (3) political
considerations, (4) large debt positions relative to the country’s
economy, (5) policies toward foreign lenders or investors, (6) the failure
to implement economic reforms required by the International Monetary Fund
or other multilateral agencies, or (7) an inability or unwillingness to
repay debts. It may be particularly difficult to enforce the rights of
debt holders in emerging markets. A governmental entity that defaults on
an obligation may request additional time in which to repay loans, may
request further loans, or may seek to restructure its obligations to
reduce interest rates or outstanding principal. There is no legal process
for collecting sovereign and quasi-sovereign debt that a government does
not pay, nor are there bankruptcy proceedings through which all or part of
the sovereign debt that a governmental entity has not repaid may be
collected. Sovereign and quasi-sovereign debt risk is increased for
emerging markets issuers, which are among the largest debtors to
commercial banks and foreign governments. At times, certain emerging
market countries have declared moratoria on the payment of principal and
interest on external debt. Certain emerging market countries have
experienced difficulty in servicing their sovereign debt on a timely
basis, which has led to defaults and the restructuring of certain
indebtedness; |
• |
|
U.S. Government securities and
government-sponsored enterprises risk arises because a security
backed by the U.S. Treasury or the full faith and credit of the United
States is guaranteed by the applicable entity only as to the stated
interest rate and face value at maturity, not its current market price.
The market prices for such securities are not guaranteed and will
fluctuate. Certain securities that may be held by the fund that are issued
by government-sponsored enterprises, such as the Federal National Mortgage
Association (‘‘Fannie Mae’’), the Federal Home Loan Mortgage Corporation
(‘‘Freddie Mac’’), Federal Home Loan Banks (“FHLB”), Federal Farm Credit
Banks (“FFCB”), the Government National Mortgage Association (“Ginnie
Mae”) and the Tennessee Valley Authority (“TVA”) are not guaranteed by the
U.S. Treasury and are not backed by the full faith and credit of the U.S.
Government. U.S. Government securities and securities of government
sponsored enterprises are also subject to credit risk, interest rate risk
and market risk. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of the
fund’s
investments; |
• |
|
U.S. Treasury obligations risk is the
risk that the market value of U.S. Treasury obligations may vary due to
fluctuations in interest rates. In addition, changes to the financial
condition or credit rating of the U.S. Government may cause the market
value of the fund’s investments in obligations issued by the U.S. Treasury
to decline. Certain political events in the U.S., such as a prolonged
government shutdown or potential default on the national debt, may also
cause investors to lose confidence in the U.S. Government and may cause
the market value of U.S. Treasury obligations to decline;
and |
|
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96 | rjinvestmentmanagement.com |
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|
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
• |
|
Valuation risk arises because the
securities held by the fund may be priced by an independent pricing
service and may also be priced using dealer quotes or fair valuation
methodologies in accordance with valuation procedures adopted by the
fund’s Board. The prices provided by the independent pricing service or
dealers or the fair valuations may be different from the prices used by
other mutual funds or from the prices at which securities are actually
bought and sold. |
Performance
| The bar chart that follows illustrates annual fund returns for the
periods ended December 31. The table that follows compares the fund’s returns
for various periods with those of its benchmark index. This information
is intended to give you some indication of the risk of investing in the fund by
demonstrating how its returns have varied over time. The bar
chart shows the fund’s Class I share performance from one year to another.
The Class I shares of the fund have adopted the performance history and
financial statements of the Institutional Class shares of the fund’s
predecessor. Each of the fund’s share classes is invested in the same portfolio
of securities, and the annual returns would have differed only to the extent
that the classes do not have the same sales charges and expenses. The fund’s past performance
(before and after taxes) is not necessarily an indication of how the fund will
perform in the future. To obtain more current performance data
as of the most recent month‑end, please visit our website at rjinvestmentmanagement.com.
|
|
|
|
|
| |
During 10 year period (Class I
shares): |
|
| |
|
|
Return |
|
Quarter Ended |
|
| |
Best Quarter |
|
8.40% |
|
June 30,
2020 |
|
| |
Worst Quarter |
|
(3.50)% |
|
June 30,
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average annual total returns (for the
periods ended December 31, 2023): |
|
|
|
|
|
|
|
|
|
Fund return (after
deduction of sales charges and expenses) |
|
|
|
|
|
| |
Share
Class |
|
Inception Date |
|
1‑yr |
|
5‑yr |
|
10-yr |
|
|
Lifetime
(if less than
10
yrs) |
|
|
|
|
|
| |
Class I
– Before Taxes |
|
9/29/11 |
|
8.53% |
|
4.01% |
|
|
2.39% |
|
|
|
| |
|
|
|
|
| |
After
Taxes on Distributions |
|
|
|
6.51% |
|
2.80% |
|
|
1.54% |
|
|
|
|
|
|
|
|
|
| |
After
Taxes on Distributions and Sale of Fund Shares |
|
| |
5.00% |
|
2.57% |
|
|
1.46% |
|
|
|
| |
|
|
|
|
| |
Class A
– Before Taxes |
|
11/20/17 |
|
4.16% |
|
2.90% |
|
|
|
| |
|
2.42% |
|
|
|
|
|
| |
Class C
– Before Taxes |
|
11/20/17 |
|
7.39% |
|
2.94% |
|
|
|
| |
|
2.30% |
|
|
|
|
|
| |
Class R‑6
– Before Taxes |
|
11/20/17 |
|
8.64% |
|
4.14% |
|
|
|
| |
|
3.47% |
|
Index (reflects no deduction
for fees, expenses or taxes) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
1‑yr |
|
5‑yr |
|
10-yr |
|
|
Lifetime
(From Inception Date of Class A, Class C and Class R‑6
Shares) |
|
|
|
|
|
| |
ICE BofA US 3-Month Treasury Index |
|
| |
5.05% |
|
1.89% |
|
|
1.26% |
|
|
|
1.88% |
|
|
| |
| |
rjinvestmentmanagement.com | 97 |
Carillon
Mutual Funds
SUMMARY OF CARILLON REAMS UNCONSTRAINED BOND
FUND | 4.26.2024
After‑tax returns are
calculated using the historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns depend on an investor’s tax situation and may differ
from those shown. After‑tax returns shown are
not relevant to investors who hold their fund shares through tax‑deferred
arrangements, such as a 401(k) plan or individual retirement account
(“IRA”). After‑tax returns are shown
for Class I only and after‑tax returns for Class A, Class C and
Class R‑6 will vary. The return after taxes on
distributions and sale of fund shares may exceed the return before taxes due to
an assumed tax benefit from any losses on a sale of fund shares at the end of
the measurement period.
Investment Adviser | Carillon Tower Advisers,
Inc. is the fund’s investment adviser.
Subadviser | Scout Investments, Inc., through
its Reams Asset Management division, serves as the subadviser to the fund.
Portfolio Managers | Mark M. Egan, CFA®, has served as the Lead
Portfolio Manager of the fund and Todd C. Thompson, CFA® and Clark W. Holland,
CFA®, have served as
Portfolio Co‑Managers of the fund since the fund’s inception in 2017. Jason J.
Hoyer, CFA®, has served
as Portfolio Co‑Manager of the fund since April 2018. Tilak “Dimitri” Silva,
CFA®, has served as
Portfolio Co-Manager of the fund since March 2021. Neil Aggarwal has served as
Portfolio Co-Manager of the fund since March 2023. Messrs. Egan, Thompson,
Holland, Hoyer, Silva and Aggarwal are jointly and primarily responsible for the
day‑to‑day management of the fund. Mr. Egan served as Lead Portfolio
Manager of the fund’s predecessor and Mr. Thompson served as Portfolio
Co‑Manager of the fund’s predecessor from its inception in 2011 to 2017.
Mr. Holland served as Portfolio Co‑Manager of the fund’s predecessor from
2014 to 2017.
Purchase and sale of fund shares | You may
purchase, redeem, or exchange Class A, C, and I shares of the fund on any
business day through your financial intermediary, by mail at Carillon Family of
Funds, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI
53201-0701 (for regular mail) or 615 East Michigan Street, Third Floor,
Milwaukee, WI, 53202 (for overnight service), or by telephone (800.421.4184). In
Class A and Class C shares, the minimum purchase amount is $1,000 for
regular accounts, $100 for retirement accounts and $50 through a periodic
investment program, with a minimum subsequent investment plan of $50 per month.
For individual investors, the minimum initial purchase for Class I shares
is $1,000, while fee‑based plan sponsors set their own minimum requirements. For
Class R-6 shares, other than those purchased through a participating retirement
plan, the minimum initial purchase is $1,000,000. For Class R-6 shares purchased
through a participating retirement plan, the minimum initial purchase is set by
the plan administrator.
Tax information | The dividends you receive
from the fund will be taxed as ordinary income or net capital gain (i.e., the
excess of net long-term capital gain over net short-term capital loss) unless
you are investing through a tax‑deferred arrangement, such as a 401(k) plan or
an IRA, in which case you may be subject to federal income tax on withdrawals
from the arrangement.
Payments to broker-dealers and other financial
intermediaries | If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its
related companies may pay the intermediary for the sale of fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
|
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98 | rjinvestmentmanagement.com |
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|
Carillon
Mutual Funds
Additional
Information About the Funds
Each
fund’s investment objective is non‑fundamental and may be changed by its Board
of Trustees without shareholder approval.
The
Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap Growth Fund,
Carillon Chartwell Small Cap Value Fund, Carillon ClariVest International Stock
Fund, Carillon Eagle Mid Cap Growth Fund, Carillon Eagle Small Cap Growth Fund,
Carillon Scout Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Chartwell
Short Duration High Yield Fund, Carillon Reams Core Bond Fund, Carillon Reams
Core Plus Bond Fund and Carillon Reams Unconstrained Bond Fund each have adopted
a non‑fundamental policy to invest, under normal market conditions, at least 80%
of its net assets (plus the amount of any borrowings for investment purposes) in
the type of investments described in its name, as discussed in the “Principal
investment strategies” section of each fund’s Summary. If a fund changes its 80%
investment policy, a written notice will be sent to shareholders at least 60
days in advance of the change and this Prospectus will be
supplemented.
As
a temporary defensive measure because of market, economic or other conditions,
each fund may invest up to 100% of its assets in high-quality, short-term debt
instruments or may take positions that are inconsistent with its principal
investment strategies. Each fund may also invest its assets in cash, cash
equivalent securities, repurchase agreements or money market instruments as a
temporary defensive measure. To the extent that a fund takes such a temporary
defensive position, its ability to achieve its investment objective may be
affected adversely.
Additional
Information Regarding Investment Strategies
Carillon Chartwell Mid Cap Value Fund | Under
normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of
mid-capitalization U.S. companies. The fund will not change this investment
policy unless it gives shareholders at least 60 days’ advance written notice.
The fund’s subadviser considers mid-capitalization companies to be those
companies that, at the time of initial purchase, have a market capitalization
within the range of the Russell Midcap Value Index during the most recent
12-month period (which was approximately $239.1 million and $73.3 billion as of
December 31, 2023). The Russell Midcap Value Index is reconstituted annually.
Because the fund’s sub-adviser defines mid-capitalization companies by reference
to an index, the range of market capitalization of companies in which the fund
invests may vary with market conditions. The fund may continue to hold
securities of companies whose market capitalization was within the range of the
Russell Midcap Value Index at the time of purchase but whose current market
capitalization may be outside of that range.
The
fund typically invests in common stocks, including U.S. dollar denominated
securities of issuers based outside the U.S. (“foreign issuers”) and real estate
investment trusts (“REITs”). The fund may invest up to 20% of its assets in
foreign issuers.
REITs
are companies that own, and typically operate, income-producing real estate or
real estate-related assets. REITs are generally classified as equity REITs,
mortgage REITs, or a combination of equity and mortgage REITs. Equity REITs
invest the majority of their assets directly in real property and derive income
primarily from the collection of rents. Equity REITs can also realize capital
gains by selling properties that have appreciated in value. Mortgage REITs
invest the majority of their assets in real estate mortgages and derive income
from the collection of interest payments.
The
subadviser may also purchase ETFs designed to track U.S. mid-cap indices to
manage the fund’s cash holdings and gain exposure to the types of securities in
which the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities, often designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
The
fund generally invests in companies that its subadviser believes to be
undervalued. The subadviser’s investment approach relies heavily on valuation
history to identify opportunities and prioritizes companies with durable
businesses, strong balance sheets, and improving fundamental prospects. The
subadviser’s investment process integrates the efforts of quantitative analysis,
fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple valuation measures, and identifying companies with valuations at
the lower end of their historical valuation ranges and that offer attractive
risk/reward characteristics.
Fundamental analysis:
The subadviser conducts comprehensive business reviews to develop
a sound understanding of a company’s business. The research process also focuses
on understanding the cause of a company’s undervaluation and the company’s
ability to realize its valuation potential.
Portfolio management:
The subadviser constructs the fund’s final portfolio using a
bottom-up approach to stock selection. The subadviser weighs a number of factors
including fundamentals, timing of catalysts, and growth prospects when
determining portfolio holdings.
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Mutual Funds
The
subadviser may sell all or a portion of a fund portfolio holding when, in its
opinion, one or more of the following occurs: (1) valuation is at the high
end of the company’s historical range; (2) erosion of a company’s
fundamentals; (3) a more compelling alternative investment is identified;
or (4) the fund requires cash to meet redemption requests.
When
the subadviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
Under
normal market conditions, the subadviser generally expects that an investment in
any single issuer will comprise 5% or less of the total value of the assets in
the portfolio. The sub-advisor also expects that the fund’s exposure to any one
sector will range from 50% to 150% of the weight of that sector in the Russell
Mid Cap Value Index. However, for smaller sectors, the fund’s exposure generally
will be no more than 5 percentage points above or below the weight of that
sector in the Russell Mid Cap Value Index.
Carillon Chartwell Small Cap Growth Fund |
Under normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund will not change this investment policy
unless it gives shareholders at least 60 days’ advance written notice. The
fund’s subadviser considers small capitalization companies to be those that, at
the time of initial purchase, have a market capitalization generally within the
range of the Russell 2000 Growth Index during the most recent 12-month period
(which was approximately $1.86 million and $17.4 billion as of December 31,
2023). The Russell 2000 Growth Index is reconstituted annually. Because the
fund’s subadviser defines small capitalization companies by reference to an
index, the range of market capitalization of companies in which the fund invests
may vary with market conditions. The fund may continue to hold securities of
companies whose market capitalization was within the range of the Russell 2000
Growth Index at the time of purchase but whose current market capitalization may
be outside of that range.
The
fund typically invests in common stocks, including U.S. dollar-denominated
securities of issuers based outside of the U.S. (“foreign issuers”). The fund
may invest up to 20% of its assets in foreign issuers. The fund may have
significant exposure to the Health Care, Industrials and Information Technology
sectors. However, as the sector composition of the fund’s portfolio changes over
time, the fund’s exposure to these sectors may be lower at a future date and the
fund’s exposure to other market sectors may be higher.
The
subadviser also may purchase ETFs designed to track U.S. small-cap indices to
manage the fund’s cash holdings and gain exposure to the types of securities in
which the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities, often designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
The
fund’s subadviser uses a “growth” style of management and seeks to identify
companies with above average potential for earnings growth. The portfolio
managers initiate investment ideas opportunistically, when securities are
attractively valued, yet concentrate holdings in companies best positioned for
rapid growth. The subadviser’s investment process integrates the efforts of
quantitative analysis, fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple parameters, and identifying companies priced with secular,
sustainable growth, a sound economic foundation and proven management expertise
and that offer attractive risk/reward characteristics.
Fundamental analysis:
The subadviser conducts comprehensive business reviews to develop
a sound understanding of a company’s business. The research process focuses on
understanding the company’s business model, and the inherent strengths and
potential weaknesses of a company’s business model. The research involves
understanding the visibility and durability of a company’s growth opportunity,
while identifying catalysts that could lead to an acceleration of a company’s
growth profile.
Portfolio management:
The subadviser constructs the fund’s final portfolio using a
bottom-up approach to stock selection. The subadviser then considers the
individual sector weightings within the portfolio, as well as the comparable
sector weighting within the benchmark. The final portfolio will be diversified,
investing in companies across each industrial sector. A number of factors
including fundamentals, timing of catalysts, and growth prospects are considered
when determining portfolio weightings.
When
the subadviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest some or all of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
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Mutual Funds
Under
normal market conditions, the subadviser expects that: (1) an investment in any
single issuer (at the time of purchase) will comprise less than 5% of the total
value of the assets in the portfolio; and (2) an investment in any one sector
(at the time of purchase) will not exceed the greater of: (i) 150% of the
benchmark sector weight, or (ii) 25% of the total value of the assets in the
portfolio.
Carillon Chartwell Small Cap Value Fund | Under
normal circumstances, the fund will invest at least 80% of its net assets
(including amounts borrowed for investment purposes) in common stocks of small
capitalization U.S. companies. The fund will not change this investment policy
unless it gives shareholders at least 60 days’ advance written notice. The
fund’s subadviser considers small capitalization companies to be those companies
that, at the time of initial purchase, have a market capitalization within the
range of the Russell 2000 Value Index during the most recent 12-month period
(which was approximately $3.96 million and $10.5 billion as of December 31,
2023). The Russell 2000 Value Index is reconstituted annually. Because the
fund’s subadviser defines small capitalization companies by reference to an
index, the range of market capitalization of companies in which the fund invests
may vary with market conditions. The fund may continue to hold securities of
companies whose market capitalization was within the range of the Russell 2000
Value Index at the time of initial purchase, but whose current market
capitalization may be outside of that range.
The
fund typically invests in common stocks, including U.S. dollar-denominated
securities of issuers based outside of the U.S. (“foreign issuers”) and real
estate investment trusts (“REITs”). REITs are companies that own, and typically
operate, income-producing real estate or real estate-related assets. The fund
may invest up to 20% of its assets in foreign issuers.
The
fund may have significant exposure to the Financials sector. However, as the
sector composition of the fund’s portfolio changes over time, the fund’s
exposure to this sector may be lower at a future date and the fund’s exposure to
other market sectors may be higher.
The
subadviser also may purchase ETFs designed to track U.S. small-cap indices to
manage the fund’s cash holdings and gain exposure to the types of securities in
which the fund primarily invests. ETFs are investment companies that invest in
portfolios of securities designed to track particular market segments or
indices, the shares of which are bought and sold on a securities exchange.
The
fund generally invests in companies that its subadviser believes to be
undervalued. The subadviser’s investment approach relies heavily on valuation
history to identify opportunities and prioritizes companies with durable
businesses, strong balance sheets, and improving fundamental prospects. The
subadviser’s investment process integrates the efforts of quantitative analysis,
fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening for inexpensive stocks
using multiple valuation measures, and identifying companies with valuations at
the lower end of their historical valuation ranges and that offer attractive
risk/reward characteristics.
Fundamental analysis:
The subadviser conducts comprehensive business reviews to develop
a sound understanding of a company’s business. The research process also focuses
on understanding the cause of a company’s undervaluation and the company’s
ability to realize its valuation potential.
Portfolio management:
The subadviser constructs the fund’s final portfolio using a
bottom-up approach to stock selection. The subadviser weighs a number of factors
including fundamentals, timing of catalysts, and growth prospects when
determining portfolio holdings.
The
subadviser may sell all or a portion of a fund portfolio holding when, in its
opinion, one or more of the following occurs: (1) valuation is at the high
end of the company’s historical range; (2) erosion of a company’s
fundamentals; (3) a more compelling alternative investment is identified;
or (4) the fund requires cash to meet redemption requests.
When
the subadviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest up to 100% of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. When the fund takes a temporary defensive position, it may
not achieve its investment objective.
Under
normal market conditions, the subadviser generally expects that an investment in
any single issuer will comprise 5% or less of the total value of the assets in
the portfolio. The sub-advisor also expects that the fund’s exposure to any one
sector will range from 50% to 150% of the weight of that sector in the Russell
2000 Value Index. However, for smaller sectors, the fund’s exposure generally
will be no more than 5 percentage points above or below the weight of that
sector in the Russell 2000 Value Index.
Carillon ClariVest Capital Appreciation Fund |
In selecting securities for the fund, the subadviser utilizes quantitative tools
to implement a “bottom‑up,” fundamentally based, investment process. A bottom‑up
method of analysis seeks to de‑emphasize the significance of economic and market
cycles. The subadviser constructs a portfolio that seeks to maximize expected
return, subject to constraints designed to meet long‑run expected active risk
goals. This framework builds toward the goal of sustainable performance relative
to the Russell 1000®
Growth Index, which is a growth-oriented benchmark.
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Mutual Funds
The
fund will invest primarily in the common stocks of large- and mid‑capitalization
U.S. companies that the portfolio management team believes have the potential
for earnings growth and improvement in investor sentiment. In addition, as a
non‑principal investment strategy, the fund may invest in common stocks of
foreign companies. The intrinsic worth of the companies’ stocks may not be
recognized by the market or the stocks may be currently out of favor with
investors. The fund may sell securities when they no longer meet the portfolio
managers’ investment criteria and/or to take advantage of more attractive
investment opportunities.
Carillon ClariVest International Stock Fund |
In selecting securities for the fund, the subadviser utilizes quantitative tools
to implement a “bottom‑up,” fundamentally based, investment process. A bottom‑up
method of analysis seeks to de‑emphasize the significance of economic and market
cycles. The subadviser constructs a portfolio that seeks to maximize expected
return, subject to constraints designed to meet long‑run expected active risk
goals. This framework builds toward the goal of sustainable performance.
The
fund may sell securities when they no longer meet the portfolio manager’s
investment criteria and/or to take advantage of more attractive investment
opportunities.
Carillon Eagle Growth &
Income Fund | The fund’s portfolio managers adhere to a relative value
investment style, employing a “bottom‑up” investment process that seeks to
acquire promising companies with sound business fundamentals at a time when they
believe intrinsic value is not fully recognized by the marketplace. A bottom‑up
method of analysis de‑emphasizes the significance of economic and market cycles.
The portfolio managers select companies based upon their belief that those
companies have the following characteristics:
Income
• |
|
Yield
or dividend growth at or above the S&P 500
Index; |
• |
|
Demonstrated
commitment to paying and increasing dividends. |
Growth
• |
|
Dominance
in expanding industry; |
• |
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Growth
rate greater than inflation; |
• |
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Dividend
yield plus growth is more than 10 percent; |
• |
|
Demonstrated
commitment to increasing dividends. |
Stability
• |
|
Free
cash flow and shareholder-oriented management; |
• |
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Stock
price below estimated intrinsic value. |
Sell
Discipline
• |
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Price
appreciation near or above sustainable level; |
• |
|
Deterioration
of company fundamentals, indicative of dividend
cut; |
• |
|
Occupation
of too large a portion of total portfolio; |
• |
|
Development
of more attractive investment opportunity. |
Equity
securities typically include common stocks and may include foreign stocks (a
portion of which may be invested in emerging markets), convertible securities,
preferred stocks, and real estate investment trusts (“REITs”). The fund also may
invest in corporate bonds and government securities, including securities issued
by U.S. Government-sponsored enterprises, which are not backed by the full faith
and credit of the U.S. Government and are not guaranteed or insured by the U.S.
Government. The securities in which the fund may invest may be rated below
investment grade by Moody’s Investors Service, Inc., S&P Global Ratings or
Fitch Ratings Ltd. or, if unrated, deemed to be of comparable quality.
The
fund may purchase debt securities of any maturity. The fund will sell securities
when they no longer meet the portfolio managers’ investment criteria.
Carillon Eagle Mid Cap Growth Fund | The
portfolio managers use a “bottom‑up” method of analysis based on fundamental
research to determine which common stocks to purchase for the fund. A bottom‑up
method of analysis de‑emphasizes the significance of economic and market cycles.
The primary focus is the analysis of individual companies rather than the
industry in which that company operates or the economy as a whole. The portfolio
managers attempt to purchase stocks that have the potential for above-average
earnings or sales growth, reasonable valuations and acceptable debt levels. Such
stocks can typically have high price‑to‑earnings ratios. The portfolio managers
generally do not emphasize investment in any particular investment sector or
industry. The fund will generally sell when the stock has met the portfolio
managers’ target price, the investment is no longer valid, a better investment
opportunity has arisen or if the investment reaches a value more than 5% of the
fund’s net assets. The fund is not required to sell equity securities whose
market values appreciate or depreciate outside the fund’s market capitalization
range.
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Mutual Funds
Carillon Eagle Small Cap Growth Fund | When
making their investment decisions, the portfolio managers generally focus on
investing in the dividend paying equity securities of companies that the
portfolio managers believe have accelerating earnings growth rates, reasonable
valuations (typically with a price‑to‑earnings ratio of no more than the
earnings growth rate), strong management that participates in the ownership of
the company, reasonable debt levels and/or a high or expanding return on equity.
The portfolio managers utilize a “bottom‑up” approach to identifying the
companies in which the fund invests and perform proprietary investment research.
A bottom‑up method of analysis de‑emphasizes the significance of economic and
market cycles. The primary focus is on the individual companies rather than the
industry in which that company operates or the economy as a whole. The fund will
sell securities when they no longer meet the portfolio managers’ investment
criteria. The fund is not required to sell equity securities whose market values
appreciate or depreciate outside the fund’s market capitalization range.
Carillon Scout Mid Cap Fund | The fund invests
primarily in a diversified portfolio of equity securities.
Under
normal circumstances, at least 80% of the fund’s net assets will be invested in
mid cap equity securities. The fund is not required to sell equity securities
whose market values appreciate or depreciate outside the fund’s market
capitalization range.
The
equity securities in which the fund invests include common stocks, depositary
receipts, preferred stocks, convertible securities, warrants and other rights
and REITs. Common stock represents an ownership interest in a company and its
value is based on the success of the company’s business, any income paid to
shareholders, the value of the company’s assets, general market conditions and
investor demand. Depositary receipts are typically issued by banks or trust
companies representing ownership interests of securities issued by foreign
companies. Preferred stockholders typically receive greater dividends but may
receive less appreciation than common stockholders and may have different voting
rights as well. Convertible securities entitle the holder to receive interest
paid or accrued on debt or the dividend paid on preferred stock until the
convertible securities mature or are redeemed, converted or exchanged. Warrants
and similar rights are privileges issued by corporations enabling the owners to
subscribe to and purchase a specified number of shares of the corporation at a
specified price during a specified period of time. REITs are companies that
invest primarily in income producing real estate or real estate related loans or
interests. The fund may engage in frequent and active trading.
The
fund will invest primarily in securities of U.S. companies, but may invest up to
20% of its net assets in foreign companies, including those located in
developing countries or emerging markets. The fund’s investments in foreign
companies may include depositary receipts (such as American Depositary Receipts
(“ADRs”) and Global Depositary Receipts (“GDRs”)).
The
fund intends to hold some cash, short-term debt obligations, government
securities or other high-quality investments for reserves to cover redemptions
and unanticipated expenses. There may be times, however, when the fund attempts
to respond to adverse market, economic, political or other conditions by
investing a higher percentage of its assets in cash or in those types of money
market investments for temporary defensive purposes. During those times, the
fund may not be able to pursue its investment objective or follow its principal
investment strategies and, instead, will focus on preserving your
investment.
The
portfolio management team normally invests the fund’s assets in a diversified
portfolio of equity securities. The portfolio management team seeks to invest in
the securities of companies that are expected to benefit from macroeconomic or
company-specific factors, and that are attractively priced relative to their
fundamentals. In making investment decisions, the portfolio management team may
consider fundamental factors such as cash flow, financial strength,
profitability, statistical valuation measures, potential or actual catalysts
that could move the share price, accounting practices, management quality, risk
factors such as litigation, the estimated fair value of the company, general
economic and industry conditions, and additional information as
appropriate.
Carillon Scout Small Cap Fund | The fund
invests primarily in a diversified portfolio of equity securities.
The
fund pursues its objective by investing, under normal circumstances, at least
80% of its net assets in equity securities (mostly common stocks) of small cap
companies located anywhere in the United States. The fund is not required to
sell equity securities whose market values appreciate or depreciate outside the
fund’s market capitalization range.
The
equity securities in which the fund invests include common stocks, depositary
receipts, preferred stocks, convertible securities, warrants and other rights
and REITs. Common stock represents an ownership interest in a company and its
value is based on the success of the company’s business, any income paid to
shareholders, the value of the company’s assets, general market conditions and
investor demand. Depositary receipts are typically issued by banks or trust
companies representing ownership interests of securities issued by foreign
companies. Preferred stockholders typically receive greater dividends but may
receive less appreciation than common stockholders and may have different voting
rights as well. Convertible securities entitle the holder to receive interest
paid or accrued on debt or the dividend paid on preferred stock until the
convertible securities mature or are redeemed, converted or exchanged. Warrants
and similar rights are privileges issued by corporations enabling the owners to
subscribe to and purchase a specified number of shares of the corporation at a
specified price during a specified period of time. REITs are companies that
invest primarily in income producing real estate or real estate related loans or
interests.
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Mutual Funds
The
fund will invest primarily in securities of U.S. companies, but may invest up to
10% of its net assets in foreign companies, including those located in
developing countries or emerging markets. The fund’s investments in foreign
companies may include depositary receipts (such as ADRs and GDRs).
The
fund intends to hold some cash, short-term debt obligations, government
securities or other high-quality investments for reserves to cover redemptions
and unanticipated expenses. There may be times, however, when the fund attempts
to respond to adverse market, economic, political or other conditions by
investing a higher percentage of its assets in cash or in those types of money
market investments for temporary defensive purposes. During those times, the
fund may not be able to pursue its investment objective or follow its principal
investment strategies and, instead, will focus on preserving your
investment.
The
portfolio management team will search for investments across a large number of
sectors for the fund, but based on economic conditions, may from time to time
have significant positions in particular sectors. The fund may also hold
securities of mid-capitalization companies.
The
portfolio management team normally invests the fund’s assets in a diversified
portfolio of equity securities that are selected based upon the portfolio
management team’s perception of their above-average potential for long-term
growth of capital. The portfolio management team searches for companies that it
believes are well positioned to benefit from the emergence of long-term
catalysts for growth. The identified growth catalysts are long-term and secular
(i.e., exhibiting relatively consistent expansion over a long period). Following
the identification of well-positioned companies, the portfolio management team
estimates the fair value of each candidate by assessing: margin structure,
growth rate, debt level and other measures which it believes influence relative
stock valuations. The overall company analysis includes the assessment of the
liquidity of each security, sustainability of profit margins, barriers to entry,
company management and free cash flow.
Carillon Chartwell Real Income Fund | The fund
seeks to achieve its investment objectives by investing in income producing
securities. Under normal circumstances, the fund intends to invest at least 60%
of its net assets in Treasury Inflation Protected Securities (“TIPS”). TIPS are
publicly issued, dollar denominated U.S. Government securities issued by U.S.
Treasury that have principal and interest payments linked to official inflation
(as measured by the Consumer Price Index, or CPI). Their payments are supported
by the full faith and credit of the United States. In selecting TIPS and other
inflation-indexed debt securities, including those issued by the U.S. and non-
U.S. government, their agencies or instrumentalities, the subadviser implements
a relative value strategy based on the subadviser’s outlook for inflation and
inflation-adjusted interest rates (real interest rates). The fund may invest in
TIPS and other inflation-indexed debt securities and fixed income securities of
any maturity. However, the fund’s average effective duration is expected to
range from three to seven years. Duration is a measure of a debt security’s
sensitivity to changes in interest rates. For example, the price of a security
with a seven-year duration would be expected to decline by approximately 7% in
response to a 1% increase in interest rates.
In
addition to inflation-indexed debt securities, the fund may invest in other
types of U.S. Treasury bills, bonds and notes, debt securities issued by U.S.
Government agencies, corporate bonds, preferred stocks, mortgage-backed
securities, asset-backed securities, master limited partnerships (“MLPs”), below
investment grade securities, common stocks of mid- and large-capitalization
companies and natural resources and precious metals companies, including
dividend-paying securities, and securities issued by real estate investment
trusts (“REITs”) and exchange-traded funds (“ETFs”). The fund’s investments may
include ETFs that invest in natural resources and precious metals companies and
gold and silver directly, which the subadviser believes over the long term tend
to be less correlated to the equity and fixed income markets and may help to
reduce the fund’s overall volatility. Certain of the fund’s investments in
corporate bonds and preferred stocks may be convertible into common stocks. The
subadviser also may purchase bonds and preferred stocks in private transactions
that qualify under Rule 144A of the Securities Act of 1933 (the “1933 Act”).
Additionally, the subadviser may purchase securities that are not registered
under the 1933 Act including Section 4(a)(2) securities and Rule 144A
securities, which are subject to restrictions on resale, and securities issued
in non-U.S. markets subject to similar regulations.
The
subadviser selects corporate bonds and securitized products primarily on the
basis of relative value and current yield and secondarily on the basis of
anticipated long term return. The subadviser seeks to invest in the debt
securities of companies that it believes will experience stable or improving
credit profiles, and selects debt securities for the fund’s portfolio by
analyzing a security’s historical and relative yield spreads, as well as its
credit quality, structure, maturity and liquidity. When selecting corporate
bonds and securitized products, such as mortgage-backed securities and
asset-backed securities, the sub-adviser also will consider the rating the bond
has received from Standard & Poor’s Ratings Services, a division of McGraw
Hill Companies, Inc. (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”),
Fitch Ratings Ltd. (“Fitch”) or Morningstar DRBS (“Morningstar”). The subadviser
may invest in fixed income securities of any credit rating including below
investment grade securities. Investment grade securities are those rated in the
Baa3 or higher categories by Moody’s, or in the BBB- or higher categories by
S&P Fitch or Morningstar or, if unrated by S&P, Moody’s, Fitch or
Morningstar, determined by the sub-adviser to be of comparable credit quality.
Below-investment grade securities, commonly referred to as “junk bonds” or “high
yield securities,” are securities rated below investment grade by at least one
of Moody’s, S&P, Fitch or Morningstar (or, if unrated, determined by the
subadviser to be of comparable credit quality).
The
subadviser’s investment approach seeks to identify companies with favorable
valuations, margin improvement, product innovations and visionary management
teams. The fund may invest up to 15% of its net assets in common stocks and in
preferred stocks. Preferred stocks are generally selected based on one of two
criteria: (1) preferred stocks that the subadviser believes are offering an
above average yield, in comparison to other preferred stocks of the same
quality; and (2) preferred stocks that the subadviser believes offer the
potential for capital appreciation due to the business prospects of the
issuers.
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|
Carillon
Mutual Funds
Carillon Chartwell Short Duration High Yield Fund
| Under normal circumstances, the fund invests at least 80% of its net
assets (plus any borrowings for investment purposes) in high yield debt
securities. The fund will not change this investment policy unless it gives
shareholders at least 60 days’ advance written notice.
High
yield debt securities, also referred to as “junk” bonds, are securities rated
below the Baa3 category by Moody’s Investors Service, Inc. (“Moody’s”), or below
BBB- by Standard & Poor’s Ratings Services, a division of McGraw Hill
Companies, Inc. (“S&P”) or Fitch Ratings Ltd. (“Fitch”) at the time of
purchase or, if unrated, are determined to be of comparable credit quality by
the fund’s subadviser. Under normal market conditions, the fund’s subadviser
expects to primarily invest in debt securities rated BB, the higher quality tier
of the overall high yield market, which the fund’s subadviser believes may offer
an opportunity for more attractive yield premiums, with a lower probability of
credit erosion relative to the high yield bond market as a whole. The subadviser
considers a security to be rated BB if, at the time of purchase, it was assigned
a rating of Ba1, Ba2, or Ba3 by Moody’s Investor Services, Inc., or BB+, BB, or
BB- by Standard & Poor’s or Fitch, Inc., or, if unrated, it was determined
to be of comparable credit quality by the fund’s subadviser. The fund’s
sub-adviser seeks to identify securities of companies with stable cash flows and
proven and established business models in an effort to manage the amount of
credit, interest rate, liquidity and other risks, presented by the fund’s
investments in high yield securities.
The
types of debt securities in which the fund primarily invests include, but will
not be limited to, U.S. dollar denominated high yield corporate bonds and notes.
The fund may invest up to 20% of its assets in U.S. dollar denominated
securities of issuers based outside of the U.S.
While
the fund may invest in securities of any maturity, the fund will normally target
an average portfolio effective duration, as estimated by the fund’s sub-
adviser, of less than three years. Duration is a measure of the underlying
portfolio’s price sensitivity to changes in prevailing interest rates. The
longer a security’s duration, the more sensitive its price will be to changes in
interest rates. For example, the approximate percentage decrease in the price of
a security with a three-year duration would be 3% in response to a 1% increase
in interest rates.
The
subadviser’s investment process seeks to integrate quantitative analysis,
fundamental analysis and portfolio management.
Quantitative
analysis: This process includes screening of issuers by quality,
maturity and financial criteria. Financial criteria include: earnings before
interest, taxes, depreciation, and amortization (“EBITDA”), coverage of interest
expense and capital expenditures (“CAPEX”), total leverage, projected liquidity,
and asset coverage of total debt, among other measures.
Fundamental analysis:
This research process focuses on evaluating three types of
fundamental risks with respect to each issuer: Business Risk (e.g., relative
market share, cost structure, management strength and reputation, operating
history), Financial Risk (e.g., cash flow stability, capital intensity, or the
magnitude of maintenance capital expenditures relative to cash flow, credit
ratios such as EBITDA/Interest, Debt/EBITDA, and Free Cash Flow/Debt, among
others) and Covenant Risk (e.g., form and sufficiency of security if secured,
limits on debt, limits on restricted payments such as distributions to
shareholders or affiliates, and change of control protection via a contractual
put in the event of a change of ownership, among others).
Portfolio management:
The subadviser constructs the fund’s final portfolio using a
bottom-up approach to determine whether the bonds analyzed offer relative value
in the context of its industry peers and the overall high yield bond market. The
subadviser weighs a number of economic considerations (e.g., GDP growth,
unemployment rate, housing starts, vehicle sales, among others) to estimate a
position within the economic business cycle, as well as interest rate analysis
when determining portfolio holdings.
When
the subadviser believes that current market, economic, political or other
conditions are unsuitable and would impair the pursuit of the fund’s investment
objective, the fund may invest some or all of its assets in cash or cash
equivalents, including but not limited to, obligations of the U.S. Government,
money market fund shares, commercial paper, repurchase agreements, certificates
of deposit and/or bankers acceptances, as well as other interest bearing or
discount obligations. The subadviser also may purchase exchange-traded funds
(“ETFs”) designed to track fixed income securities indices to manage the fund’s
cash holdings. ETFs are investment companies that invest in portfolios of
securities, often designed to track particular market segments or indices, the
shares of which are bought and sold on a securities exchange. The ETFs in which
the fund invests may invest substantially all of their assets in high yield debt
securities. Such ETFs are taken into account when determining how much of the
fund’s net assets have been invested in high yield securities. When the fund
takes a temporary defensive position, it may not achieve its investment
objective.
The
subadviser may sell all or a portion of a position of the fund’s portfolio
holding when, in its opinion, one or more of the following occurs, among other
reasons: (1) deteriorating credit quality; (2) erosion of a company’s
fundamentals; (3) 10% relative underperformance from purchase date; (4) a more
attractive alternative investment opportunity is identified; or (5) the fund
requires cash to meet redemption requests.
Carillon Reams Core Bond Fund | The fund
invests primarily in a diversified portfolio of fixed income securities of
varying maturities. Under normal market conditions, the fund will invest at
least 80% of its net assets, determined at the time of purchase, in bonds.
The
fixed income instruments in which the fund may invest can be of varying
maturities and include bonds, debt securities and other similar instruments
issued by various U.S. and non‑U.S. public-or private-sector entities. The fund
may also invest in the following types of bonds: short-term fixed income
|
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rjinvestmentmanagement.com | 105 |
Carillon
Mutual Funds
securities;
fixed-income securities with call features; U.S. Government securities;
corporate debt securities, including convertible securities and corporate
commercial paper; mortgage-backed and other asset-backed securities (including
to-be-announced securities); collateralized loan obligations; bank certificates
of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements;
obligations of foreign governments or their subdivisions, agencies and
instrumentalities; and obligations of international agencies or supranational
entities.
The
fund invests primarily in investment grade securities. If an investment held by
the fund is downgraded below investment grade, the fund may either sell or
continue to hold the security. The fund may purchase or sell securities on a
when-issued, delayed delivery or forward commitment basis. All securities will
be U.S. dollar denominated although they may be securities of foreign issuers.
The fund may invest in credit default swap agreements, futures contracts
(including interest rate, bond, U.S. Treasury and fixed income index futures
contracts) and forward contracts subject to applicable law and any other
restrictions described in the fund’s Prospectus or SAI. The fund’s investments
in credit default swap agreements may include both single-name credit default
swap agreements and credit default swap index products, such as CDX index
products.
These
derivatives may be used by the fund to enhance fund returns, increase liquidity,
manage the duration of the fund’s portfolio and/or gain exposure to certain
instruments or markets (i.e., the corporate bond market) in a more efficient or
less expensive way. The credit default swap agreements that the fund invests in
may provide exposure to an index of securities representative of the entire
investment grade and high yield fixed income markets, which can include
underlying issuers rated as low as CCC by S&P®. The use of these derivative
transactions may also allow the fund to obtain net long or short exposures to
select interest rates, countries, durations or credit risks. Derivative
instruments that provide exposure to bonds may be used to satisfy the 80%
investment policy of the fund. For the purposes of the fund’s 80% investment
policy, the fund’s derivatives investments, other than credit default swaps
where the fund is a protection seller, are valued at market value. Credit
default swaps where the fund is a protection seller are valued at notional
value.
The
portfolio management team attempts to maximize total return over a long-term
horizon through opportunistic investing in a broad array of eligible securities.
The investment process for the fund combines top‑down interest rate management
with bottom‑up fixed income security selection, focusing on undervalued issues
in the fixed income market. The portfolio management team first establishes the
portfolio’s duration, or interest rate sensitivity. The portfolio management
team determines whether the fixed income market is under-or over-priced by
comparing current real interest rates (the nominal rates on U.S. Treasury
securities less the portfolio management team’s estimate of inflation) to
historical real interest rates. If the current real interest rate is higher than
historical norms, the market is considered undervalued and the portfolio
management team will manage the portfolio with a duration greater than the
benchmark. In general, securities with longer maturities are more sensitive to
interest rate changes. If the current real interest rate is less than historical
norms, the market is considered overvalued and the portfolio management team
will run a defensive portfolio by managing the portfolio with a duration less
than the benchmark. The portfolio management team then considers sector
exposures. Sector exposure decisions are made on both a top‑down and bottom‑up
basis. A bottom‑up issue selection process is the major determinant of sector
exposure, as the availability of attractive securities in each sector determines
their underweighting or overweighting in the fund subject to sector exposure
constraints. However, for the more generic holdings in the fund, such as agency
notes and pass-through mortgage backed securities, top‑down considerations will
drive the sector allocation process on the basis of overall measurements of
sector value such as yield spreads or price levels. Once the portfolio
management team has determined an overall market strategy, the portfolio
management team selects the most attractive fixed income securities for the
fund, as described below.
The
portfolio managers for the fund screen hundreds of securities to determine how
each will perform in various interest rate environments. The portfolio managers
construct these scenarios by considering the outlook for interest rates,
fundamental credit analysis and option-adjusted spread analysis. The portfolio
managers compare these investment opportunities and assemble the fund’s
portfolio from the best available values. The portfolio management team
constantly monitors the expected returns of the securities in the fund versus
those available in the market and of other securities the portfolio management
team is considering for purchase. The portfolio management team’s strategy is to
replace securities that it feels are approaching fair market value with those
that, according to its analysis, are significantly undervalued. As a result of
this strategy, the fund’s portfolio turnover rate will vary from year to year
depending on market conditions.
The
portfolio duration will normally be less than eight years based on market
conditions. Duration is a measure of a fixed income security’s average life that
reflects the present value of the security’s cash flow, and accordingly is a
measure of price sensitivity to interest rate changes. For example, if interest
rates decline by 1%, the market value of a portfolio with a duration of eight
years would rise by approximately 8%. Conversely, if interest rates increase by
1%, the market value of the portfolio would decline by approximately 8%. The
longer the duration, the more susceptible the portfolio will be to changes in
interest rates. For purposes of calculating the fund’s portfolio duration, the
fund includes the effect of the derivative instruments held by the fund.
Carillon Reams Core Plus Bond Fund | The fund
invests primarily in a diversified portfolio of fixed income securities of
varying maturities. Under normal market conditions, the fund will invest at
least 80% of its net assets, determined at the time of purchase, in bonds.
The
fixed income instruments in which the fund may invest can be of varying
maturities and include bonds, debt securities and other similar instruments
issued by various U.S. and non‑U.S. public- or private-sector entities. The fund
may also invest in the following types of bonds: short-term fixed income
securities; fixed-income securities with call features; U.S. Government
securities; corporate debt securities, including convertible securities and
corporate commercial paper; mortgage-backed and other asset-backed securities
(including to-be-announced securities); collateralized loan obligations; bank
certificates of deposit, fixed time deposits and bankers’ acceptances;
repurchase agreements; obligations of foreign governments or their subdivisions,
agencies and instrumentalities; and obligations of international agencies or
supranational entities.
|
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106 | rjinvestmentmanagement.com |
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|
Carillon
Mutual Funds
The
fund may invest in both investment grade securities and non‑investment grade
securities, also known as high yield securities or “junk” bonds. The investment
strategy of the fund is referred to as “Core Plus” because the portfolio
management team has the ability to add high yield securities to a core portfolio
of investment grade securities. The fund invests primarily in investment grade
securities, but may also invest up to 25% of its assets in non‑investment grade
securities. However, if an investment held by the fund that is downgraded below
investment grade causes the fund to exceed this limit, the fund may sell or
continue to hold the security.
The
fund may purchase or sell securities on a when-issued, delayed delivery or
forward commitment basis. Securities will generally be U.S. dollar denominated
although they may be securities of foreign issuers. The fund may also invest in
securities denominated in foreign currencies. The fund’s investments in the
securities of foreign issuers may include investments in developing countries or
emerging markets.
The
fund may invest in derivative instruments, such as options (including options on
futures contracts), futures contracts (including interest rate, bond, U.S.
Treasury and fixed income index futures contracts), currency and other forwards,
including non-deliverable forwards (“NDFs”), and swap agreements (including
credit default swaps) subject to applicable law and any other restrictions
described in the fund’s Prospectus or SAI. The fund’s investments in credit
default swap agreements may include both single-name credit default swap
agreements and credit default swap index products, such as CDX index
products.
These
derivatives may be used by the fund to enhance fund returns, increase liquidity,
manage the duration of the fund’s portfolio and/or gain exposure to certain
instruments or markets (i.e., the corporate bond market) in a more efficient or
less expensive way. The credit default swap agreements that the fund invests in
may provide exposure to an index of securities representative of the entire
investment grade and high yield fixed income markets, which can include
underlying issuers rated as low as CCC by S&P®. The use of these derivative
transactions may also allow the fund to obtain net long or short exposures to
select currencies, interest rates, countries, durations or credit risks.
Derivative instruments that provide exposure to bonds may be used to satisfy the
80% investment policy of the fund. For the purposes of the fund’s 80% investment
policy, the fund’s derivatives investments, other than credit default swaps
where the fund is a protection seller, are valued at market value. Credit
default swaps where the fund is a protection seller are valued at notional
value.
The
portfolio management team attempts to maximize total return over a long-term
horizon through opportunistic investing in a broad array of eligible securities.
The investment process for the fund combines top‑down interest rate management
with bottom‑up fixed income security selection, focusing on undervalued issues
in the fixed income market. The portfolio management team first establishes the
portfolio’s duration, or interest rate sensitivity. The portfolio management
team determines whether the fixed income market is under-or over-priced by
comparing current real interest rates (the nominal rates on U.S. Treasury
securities less the portfolio management team’s estimate of inflation) to
historical real interest rates. If the current real interest rate is higher than
historical norms, the market is considered undervalued and the portfolio
management team will manage the portfolio with a duration greater than the
benchmark. In general, securities with longer maturities are more sensitive to
interest rate changes. If the current real interest rate is less than historical
norms, the market is considered overvalued and the portfolio management team
will run a defensive portfolio by managing the portfolio with a duration less
than the benchmark. The portfolio management team then considers sector
exposures. Sector exposure decisions are made on both a top‑down and bottom‑up
basis. A bottom‑up issue selection process is the major determinant of sector
exposure, as the availability of attractive securities in each sector determines
their underweighting or overweighting in the fund subject to sector exposure
constraints. However, for the more generic holdings in the fund, such as agency
notes and pass-through mortgage backed securities, top‑down considerations will
drive the sector allocation process on the basis of overall measurements of
sector value such as yield spreads or price levels. Once the portfolio
management team has determined an overall market strategy, the portfolio
management team selects the most attractive fixed income securities for the
fund, as described below.
The
portfolio managers for the fund screen hundreds of securities to determine how
each will perform in various interest rate environments. The portfolio managers
construct these scenarios by considering the outlook for interest rates,
fundamental credit analysis and option-adjusted spread analysis. The portfolio
managers compare these investment opportunities and assemble the fund’s
portfolio from the best available values. The portfolio management team
constantly monitors the expected returns of the securities in the fund versus
those available in the market and of other securities the portfolio management
team is considering for purchase. The portfolio management team’s strategy is to
replace securities that it feels are approaching fair market value with those
that, according to its analysis, are significantly undervalued. As a result of
this strategy, the fund’s portfolio turnover rate will vary from year to year
depending on market conditions.
The
portfolio duration will normally be less than eight years, based on market
conditions. Duration is a measure of a fixed income security’s average life that
reflects the present value of the security’s cash flow, and accordingly is a
measure of price sensitivity to interest rate changes. For example, if interest
rates decline by 1%, the market value of a portfolio with a duration of eight
years would rise by approximately 8%. Conversely, if interest rates increase by
1%, the market value of the portfolio would decline by approximately 8%. The
longer the duration, the more susceptible the portfolio will be to changes in
interest rates. For purposes of calculating the fund’s portfolio duration, the
fund includes the effect of the derivative instruments held by the fund.
Carillon Reams Unconstrained Bond Fund | The
fund invests primarily in a diversified portfolio of fixed income securities of
varying maturities. Under normal market conditions, the fund will invest at
least 80% of its net assets, determined at the time of purchase, in fixed income
instruments.
The
fixed income instruments in which the fund may invest can be of varying
maturities and include bonds, debt securities and other similar instruments
issued by various U.S. and non‑U.S. public-or private-sector entities. The fund
may also invest in the following types of bonds: short-term fixed income
securities; fixed-income securities with call features; U.S. Government
securities; corporate debt securities, including convertible securities and
corporate
|
| |
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rjinvestmentmanagement.com | 107 |
commercial
paper; mortgage-backed and other asset-backed securities (including
to-be-announced securities); collateralized loan obligations; bank certificates
of deposit, fixed time deposits and bankers’ acceptances; repurchase agreements;
obligations of foreign governments or their subdivisions, agencies and
instrumentalities; and obligations of international agencies or supranational
entities.
The
fund may invest in both investment grade securities and non‑investment grade
securities, also known as high yield securities or “junk” bonds. The fund may
invest without limitation in non‑investment grade securities.
The
fund may purchase or sell securities on a when-issued, delayed delivery or
forward commitment basis. The fund may also engage in short sales. The fund may
invest without limitation in securities denominated in foreign currencies and in
U.S. dollar denominated securities of foreign issuers. The fund may invest a
substantial portion of its assets (more than 25%) in securities and instruments
that are economically tied to one or more foreign countries if economic and
business conditions warrant such investment. The fund will invest no more than
50% of its net assets in investments in developing countries or emerging
markets.
The
fund may invest in derivative instruments, such as options, (including options
on futures contracts) futures contracts (including interest rate, bond, U.S.
Treasury and fixed income index futures contracts), currency and other forwards,
including non-deliverable forwards (“NDFs”), and swap agreements (including
credit default swaps) subject to applicable law and any other restrictions
described in the fund’s Prospectus or SAI. The fund’s investments in credit
default swap agreements may include both single-name credit default swap
agreements and credit default swap index products, such as CDX index
products.
These
derivatives may be used by the fund to enhance fund returns, increase liquidity,
manage the duration of the fund’s portfolio and/or gain exposure to certain
instruments or markets (i.e., the corporate bond market) in a more efficient or
less expensive way. The credit default swap agreements that the fund invests in
may provide exposure to an index of securities representative of the entire
investment grade and high yield fixed income markets, which can include
underlying issuers rated as low as CCC by S&P®. The use of these derivative
transactions may also allow the fund to obtain net long or short exposures to
select currencies, interest rates, countries, durations or credit risks.
Derivative instruments that provide exposure to fixed income instruments may be
used to satisfy the 80% investment policy of the fund. For the purposes of the
fund’s 80% investment policy, the fund’s derivatives investments, other than
credit default swaps where the fund is a protection seller, are valued at market
value. Credit default swaps where the fund is a protection seller are valued at
notional value.
The
portfolio management team attempts to maximize total return by pursuing relative
value opportunities throughout all sectors of the fixed income market. The
portfolio managers for the fund screen hundreds of securities to determine how
each will perform in various interest rate environments. The portfolio managers
construct these scenarios by considering the outlook for interest rates,
fundamental credit analysis and option-adjusted spread analysis. The portfolio
managers compare these investment opportunities and assemble the fund’s
portfolio from the best available values. The portfolio management team
constantly monitors the expected returns of the securities in the fund versus
those available in the market and of other securities the portfolio management
team is considering for purchase. The portfolio management team’s strategy is to
replace securities that it feels are approaching fair market value with those
that, according to its analysis, are significantly undervalued. As a result of
this strategy, the fund’s portfolio turnover rate will vary from year to year
depending on market conditions.
The
portfolio duration of the fund will normally not exceed eight years but may be
greater based on market conditions. The fund may also have a negative duration.
Duration is a measure of a fixed income security’s average life that reflects
the present value of the security’s cash flow, and accordingly is a measure of
price sensitivity to interest rate changes. For example, if interest rates
decline by 1%, the market value of a portfolio with a duration of eight years
would rise by approximately 8%. Conversely, if interest rates increase by 1%,
the market value of the portfolio would decline by approximately 8%. The longer
the duration, the more susceptible the portfolio will be to changes in interest
rates. A portfolio with negative duration generally incurs a loss when interest
rates and yields fall. For purposes of calculating the fund’s portfolio
duration, the fund includes the effect of the derivative instruments held by the
fund. In certain market conditions, the fund may pursue its investment objective
by investing a significant portion of its assets in cash or short-term debt
obligations.
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108 | rjinvestmentmanagement.com |
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Carillon
Mutual Funds
Additional
Information About Principal Risk Factors
The
greatest risk of investing in a mutual fund is that its returns will fluctuate
and you could lose money. Turbulence in financial markets and reduced liquidity
in equity, credit and fixed income markets may negatively affect many issuers
worldwide, which could have an adverse effect on the funds. Additionally, while
the portfolio managers seek to take advantage of investment opportunities that
will maximize a fund’s investment returns, there is no guarantee that such
opportunities will ultimately benefit the fund. There is no assurance that the
portfolio managers’ investment strategy will enable a fund to achieve its
investment objective. An investment in a fund is not a deposit with a bank and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The following table identifies the risk factors of each
fund in light of its principal investment strategies. These risk factors are
explained following the table.
The
principal risks of investing in each fund listed below are presented in
alphabetical order and not in order of importance or potential exposure. Among
other matters, this presentation is intended to facilitate your ability to find
particular risks and compare them with the risks of other funds. Each risk
summarized below is considered a “principal risk” of investing in a fund,
regardless of the order in which it appears.
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rjinvestmentmanagement.com | 109 |
Carillon
Mutual Funds
|
|
|
|
|
|
|
|
|
| |
Risk |
|
Carillon Chartwell Mid Cap Value Fund |
|
Carillon Chartwell Small Cap Growth Fund |
|
Carillon Chartwell Small Cap Value Fund |
|
Carillon ClariVest Capital Appreciation Fund |
|
Carillon ClariVest International Stock Fund |
|
|
|
|
| |
Currencies |
|
| |
| |
| |
| |
X |
| |
|
|
|
|
Emerging markets |
|
| |
| |
| |
| |
X |
|
|
|
|
| |
Equity securities |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Foreign securities |
|
X |
|
X |
|
X |
|
| |
X |
|
|
|
|
| |
Geographic concentration |
|
| |
| |
| |
| |
X |
| |
|
|
|
|
Growth stocks |
|
| |
X |
|
| |
X |
|
X |
|
|
|
|
| |
Large‑cap companies |
|
| |
| |
| |
X |
|
X |
| |
|
|
|
|
Liquidity |
|
| |
| |
| |
| |
X |
|
|
|
|
| |
Management and strategy |
|
X |
|
X |
|
X |
|
| |
|
| |
|
|
|
|
Market |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Market timing |
|
| |
| |
| |
| |
X |
| |
|
|
|
|
Micro‑cap companies |
|
| |
| |
| |
X |
|
X |
|
|
|
|
| |
Mid‑cap companies |
|
X |
|
| |
| |
X |
|
X |
| |
|
|
|
|
Other investment companies, including
money market funds and ETFs |
|
X |
|
X |
|
X |
|
| |
X |
|
|
|
|
| |
Quantitative strategy |
|
| |
| |
| |
X |
|
X |
| |
|
|
|
|
Sectors |
|
| |
X |
|
X |
|
X |
|
|
|
|
|
|
| |
Securities lending |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Small‑cap companies |
|
| |
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Value stocks |
|
X |
|
| |
X |
|
X |
|
X |
|
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110 | rjinvestmentmanagement.com |
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Carillon
Mutual Funds
|
|
|
|
|
|
|
|
|
| |
Risk |
|
Carillon Eagle Growth & Income
Fund |
|
Carillon Eagle Mid Cap Growth
Fund |
|
Carillon Eagle Small Cap Growth
Fund |
|
Carillon Scout Mid Cap
Fund |
|
Carillon Scout Small Cap Fund |
|
|
|
|
| |
Currencies |
|
| |
| |
| |
X |
|
|
| |
|
|
|
|
Emerging markets |
|
| |
| |
| |
X |
|
X |
|
|
|
|
| |
Equity securities |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Focused holdings |
|
X |
|
| |
| |
| |
X |
|
|
|
|
| |
Foreign securities |
|
X |
|
| |
| |
X |
|
X |
| |
|
|
|
|
Growth stocks |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Initial public offerings |
|
| |
| |
X |
|
| |
|
| |
|
|
|
|
Interest rate |
|
X |
|
| |
| |
| |
|
|
|
|
|
| |
Large‑cap companies |
|
X |
|
| |
| |
| |
|
| |
|
|
|
|
Market |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Market timing |
|
| |
| |
| |
X |
|
X |
| |
|
|
|
|
Mid‑cap companies |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Other investment companies, including
money market funds and ETFs |
|
| |
| |
| |
X |
|
X |
| |
|
|
|
|
Portfolio turnover |
|
| |
| |
| |
X |
|
|
|
|
|
|
| |
Sectors |
|
X |
|
X |
|
X |
|
| |
X |
| |
|
|
|
|
Securities lending |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Small‑cap companies |
|
| |
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
U.S. government securities and
government sponsored enterprises |
|
| |
| |
| |
X |
|
X |
|
|
|
|
| |
U.S. Treasury obligations |
|
| |
| |
| |
X |
|
X |
| |
|
|
|
|
Value stocks |
|
X |
|
| |
| |
X |
|
X |
|
| |
| |
rjinvestmentmanagement.com | 111 |
Carillon
Mutual Funds
|
|
|
|
|
|
|
|
|
| |
Risk |
|
Carillon Chartwell Real Income
Fund |
|
Carillon Chartwell Short Duration High Yield
Fund |
|
Carillon Reams Core Bond Fund |
|
Carillon
Reams Core Plus Bond Fund |
|
Carillon Reams Unconstrained Bond
Fund |
|
|
|
|
| |
Callable securities |
|
X |
|
| |
X |
|
X |
|
X |
| |
|
|
|
|
Collateralized loan obligations |
|
| |
| |
X |
|
X |
|
X |
|
|
|
|
| |
Counterparties |
|
| |
| |
X |
|
X |
|
X |
| |
|
|
|
|
Credit |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
| |
Credit Ratings |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Currencies |
|
| |
| |
| |
X |
|
X |
|
|
|
|
| |
Derivatives |
|
| |
| |
X |
|
X |
|
X |
| |
|
|
|
|
Emerging markets |
|
| |
| |
| |
| |
X |
|
|
|
|
| |
Equity securities |
|
X |
|
| |
| |
| |
|
| |
|
|
|
|
Foreign securities |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Hedging |
|
| |
| |
X |
|
X |
|
X |
| |
|
|
|
|
High-yield securities |
|
X |
|
X |
|
| |
X |
|
X |
| |
|
|
| |
Income |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Inflation-indexed debt securities |
|
X |
|
| |
| |
| |
|
|
|
|
|
| |
Interest rate |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Issuer |
|
X |
|
| |
X |
|
X |
|
X |
|
|
|
|
| |
Large‑cap companies |
|
X |
|
| |
| |
| |
|
| |
|
|
|
|
Leverage |
|
| |
| |
X |
|
X |
|
X |
|
|
|
|
| |
Liquidity |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Management and strategy |
|
X |
|
X |
|
| |
| |
|
|
|
|
|
| |
Market |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Market timing |
|
| |
| |
| |
| |
X |
|
| |
|
| |
Master limited partnerships |
|
X |
|
X |
|
| |
| |
|
| |
|
|
|
|
Maturity |
|
X |
|
X |
|
| |
X |
|
X |
|
|
|
|
| |
Mid‑cap companies |
|
X |
|
| |
| |
| |
|
| |
|
|
|
|
Mortgage- and asset-backed
securities |
|
X |
|
| |
X |
|
X |
|
X |
|
|
|
|
| |
Natural resources and precious
metals |
|
X |
|
| |
| |
| |
|
| |
|
|
|
|
Other investment companies, including
money market funds and ETFs |
|
X |
|
X |
|
| |
| |
|
|
|
|
|
| |
Portfolio turnover |
|
| |
| |
X |
|
X |
|
X |
| |
|
|
|
|
Prepayment and extension |
|
X |
|
| |
X |
|
X |
|
X |
|
|
|
|
| |
Redemption |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Restricted securities |
|
X |
|
| |
| |
| |
|
|
|
|
|
| |
Securities lending |
|
X |
|
X |
|
X |
|
X |
|
X |
| |
|
|
|
|
Short sales |
|
| |
| |
| |
| |
X |
|
|
|
|
| |
Sovereign and Quasi-Sovereign Debt |
|
| |
| |
X |
|
X |
|
X |
| |
|
|
|
|
U.S. Government securities and
government sponsored enterprises |
|
X |
|
| |
X |
|
X |
|
X |
|
|
|
|
| |
U.S. Treasury obligations |
|
X |
|
| |
X |
|
X |
|
X |
| |
|
|
|
|
Valuation |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
|
| |
Value stocks |
|
X |
|
| |
| |
| |
|
|
| |
112 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
Callable securities | A fund may invest in
fixed-income securities with call features. A call feature allows the issuer of
the security to redeem or call the security prior to its stated maturity date.
In periods of falling interest rates, issuers may be more likely to call in
securities that are paying higher coupon rates than prevailing interest rates.
In the event of a call, a fund would lose the income that would have been earned
to maturity on that security, the proceeds received by a fund may be invested in
securities paying lower coupon rates or other less favorable characteristics,
and a fund may not benefit from any increase in value that might otherwise
result from declining interest rates. Thus, a fund‘s income could be reduced as
a result of a call and this may reduce the amount of a fund’s distributions. In
addition, the market value of a callable security may decrease if it is
perceived by the market as likely to be called, which could have a negative
impact on a fund‘s total return.
Collateralized loan obligations | The risks of
an investment in a collateralized loan obligation (“CLO”) depend largely on the
type of the collateral securities and the class of the CLOs in which a fund
invests. A fund’s investments in CLOs and other similarly structured investments
may expose a fund to heightened credit risk, interest rate risk, liquidity risk,
market risk, and prepayment and extension risk. In addition to these risks, CLOs
may carry additional risks including, but not limited to: (i) the possibility
that distributions from collateral securities will not be adequate for the CLO
to make interest or other payments; (ii) the risk that the quality of the
collateral may decline in value or default; (iii) the risk that a fund may
invest in classes of CLOs that are subordinate to other classes; (iv) the risk
that the complex structure of the security may not be fully understood at the
time of investment and may produce disputes with the issuer or unexpected
investment results; and (v) the possibility that CLO’s manager may perform
poorly. CLOs may charge management and other administrative fees, which are in
addition to those of the fund. CLOs can be difficult to value and may be highly
leveraged, which could make them highly volatile. The use of CLOs may result in
losses to the fund.
CLOs
normally are privately offered and sold, and thus, are not registered under the
securities laws. As a result, investments in CLOs may be characterized as
illiquid securities and may have limited independent pricing transparency. A
fund’s interest in CLO securities may be less liquid than the underlying loans
held by the CLO itself; thus, it may be more difficult for the fund to dispose
of CLO securities than it would be for a fund to dispose of loans if it held
such loans directly. However, an active dealer market may exist for CLOs,
allowing them to qualify for the Rule 144A “safe harbor” from the registration
requirements of the Securities Act for transactions in such securities with
qualified institutional buyers.
The
cash flows from a CLO are split into two or more portions, called tranches, each
with a different yield and risk/return profile. The riskiest portion is the
“equity” tranche which bears the bulk of defaults from the bonds or loans in the
trust and serves to protect the other, more senior tranches from default in all
but the most severe circumstances. Since they are partially protected from
defaults, senior tranches from a CLO typically have higher ratings and lower
yields than their underlying securities, and can be rated investment grade.
Despite the protection from the equity tranche, CLO tranches can experience
substantial losses due to actual defaults, increased sensitivity to defaults due
to collateral default and disappearance of protecting tranches, market
anticipation of defaults, as well as aversion to CLO securities as a
class.
Counterparties | A fund is subject to the risk
that a party or participant to a transaction, such as a broker or derivative
counterparty, will be unwilling or unable to satisfy its obligation to make
timely principal, interest or settlement payments or to otherwise honor its
obligations to a fund. As a result, a fund may not recover its investment or may
only obtain a limited recovery, and any recovery may be delayed. Not all
derivative transactions require a counterparty to post collateral, which may
expose a fund to greater losses in the event of a default by a counterparty. The
participants in over-the-counter or “interdealer” markets are typically not
subject to credit evaluation and regulatory oversight to the same extent as are
members of “exchange-based” markets. This exposes a fund to the risk that a
counterparty will not settle a transaction in accordance with its terms and
conditions because of a credit or liquidity problem with the counterparty.
Recent turbulence in the financial markets could exacerbate counterparty risk
resulting from over-the-counter derivative transactions. A fund may also be
subject to the risk that a futures commission merchant would default on an
obligation set forth in an agreement between a fund and the futures commission
merchant. This risk exists at and from the time that a fund enters into
derivatives transactions that are centrally cleared. In such cases, a clearing
organization becomes a fund‘s counterparty and the principal counterparty risk
is that the clearing organization itself will default. In addition, the futures
commission merchant may hold margin posted in connection with those contracts
and that margin may be re-hypothecated (or repledged) by the futures commission
merchant, and lost, or its return delayed, due to a default by the futures
commission merchant or other customer of the futures commission merchant. The
futures commission merchant may itself file for bankruptcy, which would either
delay the return of, or jeopardize altogether, the assets posted by the futures
commission merchant as margin in response to margin calls relating to cleared
positions. If a counterparty fails to meet its contractual obligations, goes
bankrupt, or otherwise experiences a business interruption, a fund could miss
investment opportunities or otherwise hold investments it would prefer to sell,
resulting in losses for a fund.
Credit | A fund could lose money if the issuer
or a counterparty, in the case of a derivatives contract, is unable or
unwilling, or is perceived as unable or unwilling (whether by market
participants, ratings agencies, pricing services or otherwise) to meet its
financial obligations or goes bankrupt. Securities are subject to varying
degrees of credit risk, which are often reflected in their credit ratings.
Generally, the longer the maturity and the lower the credit quality of a
security, the more sensitive it is to credit risk. The downgrade of the credit
rating of a security held by a fund may decrease its value and may make it more
difficult for the fund to sell it. Credit risk may change over the life of an
instrument. Credit risk usually applies to most fixed income securities. U.S.
Government securities, especially those that are not backed by the full faith
and credit of the U.S. Treasury, such as securities supported only by the credit
of the issuing governmental agency or government-sponsored enterprise, carry at
least some risk of nonpayment, and the maximum potential liability of the
|
| |
| |
rjinvestmentmanagement.com | 113 |
Carillon
Mutual Funds
issuers
of such securities may greatly exceed their current resources. There is no
assurance that the U.S. Government would provide financial support to the
issuing entity if not obligated to do so by law. Further, any government
guarantees on U.S. Government securities that a fund owns extend only to the
timely payment of interest and the repayment of principal on the securities
themselves and do not extend to the market value of the securities themselves or
to shares of the fund.
Credit ratings | Ratings by nationally recognized
rating agencies generally represent the agencies’ opinion of the credit quality
of an issuer. However, these ratings are not absolute standards of quality and
do not guarantee the creditworthiness of an issuer, and may prove to be
inaccurate. Ratings do not necessarily address market risk and may not be
revised quickly enough to reflect changes in an issuer’s financial
condition.
Currencies
| A fund may have exposure to
foreign currencies through its investments. Foreign currencies may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates, may be affected unpredictably by intervention, or the
failure to intervene, of the U.S. or foreign governments, central banks, or
supranational entities such as the International Monetary Fund, and may be
affected by the imposition of currency controls or political developments in the
U.S. or abroad. As a result, a fund’s exposure to foreign currencies may reduce
the returns of a fund. Foreign currencies may decline in value relative to the
U.S. dollar and other currencies and thereby affect a fund’s investments. In
addition, changes in currency exchange rates could adversely impact investment
gains or add to investment losses. Currency futures and forwards, if used, may
not always work as intended, and in specific cases, a fund may be worse off than
if it had not used such instrument(s). In the case of hedging positions, the
U.S. dollar or other currency may decline in value relative to the foreign
currency that is being hedged and thereby affect a fund’s investments. There may
not always be suitable hedging instruments available. Even where suitable
hedging instruments are available, a fund may choose to not hedge its currency
risks.
Derivatives | Derivatives, such as options
(including options on futures contracts), futures contracts, currency and other
forwards, including NDFs, or swap agreements, (including credit default swaps
and credit default swap index products), may involve greater risks than if a
fund had invested in the reference obligation directly. Derivatives are subject
to general market risks, liquidity risks, interest rate risk, and credit risks.
Derivatives also present counterparty risk (i.e., the risk that the other party
to the transaction will fail to perform). Counterparty risk is generally thought
to be greater with derivatives that are traded over‑the‑counter than with
derivatives that are exchange-traded or centrally cleared. However, derivatives
that are traded on organized exchanges and/or through clearing organizations
involve the possibility that the futures commission merchant or clearing
organization will default in the performance of its obligations. Derivatives
involve an increased risk of mispricing or improper valuation of the derivative
instrument, and imperfect correlation between the value of the derivative and
the underlying instrument, in which case a fund may not realize the intended
benefits. When used for hedging, changes in the value of the derivative may also
not correlate perfectly with the underlying asset, rate or index. Derivatives
risk may be more significant when derivatives are used to enhance fund returns,
increase liquidity, manage the duration of a fund’s portfolio and/or gain
exposure to certain instruments or markets, rather than solely to hedge the risk
of a position held by the fund.
Derivatives
can cause a fund to participate in losses (as well as gains) in an amount that
significantly exceeds the fund’s initial investment, and some derivatives have
the potential for unlimited loss, regardless of the size of a fund’s initial
investment, for example, where a fund may be called upon to deliver a security
it does not own. Derivatives can create leverage, which can magnify the impact
of a decline in the value of the reference instrument underlying the derivative,
and a fund could lose more than the amount it invests. There may be material and
prolonged deviations between the theoretical value and realizable value of a
derivative. Also, suitable derivative transactions may not be available in all
circumstances and there can be no assurance that a fund will engage in these
transactions to reduce exposure to other risks when that would be beneficial.
Derivatives may at times be highly illiquid, and a fund may not be able to close
out or sell a derivative position at a particular time or at an anticipated
price.
The
regulation of cleared and uncleared swap agreements, as well as other
derivatives, is a rapidly changing area of law and is subject to modification by
government and judicial action. It is not possible to predict fully the effects
of current or future regulation. Changes in government regulation of various
types of derivatives instruments may make derivatives more costly or limit the
availability of derivatives, which may: limit or prevent a fund from using
certain types of derivative instruments as part of its investment strategy;
affect the character, timing of recognition and amount of a fund’s taxable
income or recognized gains or losses; or otherwise adversely affect the value or
performance of derivatives. Compared to other types of investments, derivatives
may also be less tax efficient. A fund’s use of derivatives may be limited by
the requirements for taxation of the fund as a regulated investment company.
Rule 18f-4 under the 1940 Act places limits on the use of derivatives by
registered investment companies, such as a fund. A fund that relies on Rule
18f-4 is required to comply with limits on the amount of leverage-related risk
that the fund may obtain, and may also be required adopt and implement a
derivatives risk management program and designate a derivatives risk manager or
adopt policies and procedures designed to manage a fund’s derivatives
risks.
|
• |
|
Swap
Agreements. Swaps can involve greater risks than a direct investment in an
underlying asset, because swaps typically include a certain amount of
embedded leverage and as such are subject to leveraging risk. If swaps are
used as a hedging strategy, a fund is subject to the risk that the hedging
strategy may not eliminate the risk that it is intended to offset, due to,
among other reasons, the occurrence of unexpected price movements or the
non‑occurrence of expected price movements, as well as a lack of
correlation between the swaps and the portfolio of assets that the swaps
are designed to hedge or replace. Swaps also may be difficult to value.
Swaps may be subject to liquidity risk, counterparty risk and credit risk.
Swaps that are traded over‑the‑counter are not subject to standardized
clearing requirements and may involve greater liquidity
and |
|
| |
114 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
|
counterparty
risks. Credit default swaps may be subject to credit risk and the risks
associated with the purchase and sale of credit protection. With respect
to a credit default swap, if a fund is selling credit protection, there is
a risk a fund is subject to many of the same risks it would be if it were
holding debt obligations of the issuer; however, a fund would not have any
recourse against such issuer and would not benefit from any collateral
securing such issuer’s debt obligations. Therefore, when selling
protection, a fund could be forced to liquidate other assets upon the
occurrence of a credit event in order to pay the counterparty. There is
also the risk that the transaction may be closed out at a time when the
credit quality of the underlying investment has deteriorated, in which
case a fund may need to make an early termination payment. If a fund is
buying credit protection, there is the risk that no credit event will
occur and a fund will receive no benefit (other than any hedging benefit)
for the premium paid. There is also the risk that the transaction may be
closed out at a time when the credit quality of the underlying investment
has improved, in which case a fund may need to make an early termination
payment. |
|
• |
|
Futures
and Forward Contracts. Futures and forward contracts, including NDFs, are
subject to counterparty risk, credit risk and liquidity risk. There may at
times be an imperfect correlation between the movement in the prices of
futures contracts and the value of their underlying instruments or
indexes. There are no limitations on daily price movements of forward
contracts. There can be no assurance that any strategy used will succeed.
Not all forward contracts, including NDFs, require a counterparty to post
collateral, which may expose a fund to greater losses in the event of a
default by a counterparty. There can be no assurance that, at all times, a
liquid market will exist for offsetting a futures contract that a fund has
previously bought or sold and this may result in the inability to close a
futures contract when desired. Forward currency transactions include the
risks associated with fluctuations in currency. Interest rate, bond and
Treasury futures contracts expose a fund to price fluctuations
resulting from changes in interest rates. A fund could suffer a loss if
interest rates rise after a fund has purchased an
interest rate futures contract or fall after a fund has sold an interest
rate futures contract. Similarly, bond and Treasury futures contracts
expose a fund to potential losses if interest rates do not move as
expected. Fixed income index futures contracts expose a fund to volatility
in an underlying securities index. |
|
• |
|
Options.
The movements experienced by a fund between the prices of options and
prices of the assets (or indices) underlying such options, may differ from
expectations, and may cause a fund to not achieve its objective. In order
for a call option to be profitable, the market price of the underlying
security or index must rise sufficiently above the call option exercise
price to cover the premium and transaction costs. These costs will reduce
any profit that might otherwise have been realized had a fund bought the
underlying security instead of the call option. The buyer of a call option
assumes the risk of losing its entire investment in the call option. The
seller (writer) of a call option that is covered (i.e., the writer holds
the underlying security) assumes the risk of a decline in the market price
of the underlying security below the purchase price of the underlying
security less the premium received, and gives up the opportunity for gain
on the underlying assets above the exercise price of the option. The
seller of an uncovered call option assumes the risk of a theoretically
unlimited increase in the market price of the underlying assets above the
exercise price of the option. The securities necessary to satisfy the
exercise of the call option may be unavailable for purchase by such writer
except at much higher prices. Purchasing securities to satisfy the
exercise of the call option can itself cause the price of the securities
to rise further, sometimes by a significant amount, thereby exacerbating
the loss. For a put option to be profitable, the market price of the
underlying security or index must decline sufficiently below the put
option’s exercise price to cover the premium and transaction costs. These
costs will reduce any profit that might otherwise have been realized from
a fund having shorted the declining underlying security by the premium
paid for the put option and by transaction costs. The buyer of a put
option assumes the risk of losing its entire investment in the put option.
The seller (writer) of a put option that is covered (i.e., the writer has
a short position in the underlying assets) assumes the risk of an increase
in the market price of the underlying assets above the sales price (in
establishing the short position) of the underlying assets plus the premium
received, and gives up the opportunity for gain on the underlying assets
below the exercise price of the option. The seller of an uncovered put
option assumes the risk of a decline in the market price of the underlying
assets below the exercise price of the option. If an option that a fund
has purchased expires unexercised, a fund will experience a loss in the
amount of the premium it paid. The writer of an option, unlike the holder,
generally is subject to initial and variation margin requirements on the
option position. There can be no guarantee that the use of options will
increase a fund’s return or income. The premium received from writing
options may not be sufficient to offset any losses sustained from
exercised options. In addition, there may be an imperfect correlation
between the movement in prices of options and the securities underlying
them, and there may at times not be a liquid secondary market for
options. |
|
• |
|
Options
on futures contracts. Options on futures contracts are subject to the
risks associated with purchasing or writing call or put options on futures
contracts. The risks associated with options generally apply to options on
futures contracts, such as a buyer’s risk of losing premium if a purchased
option expires unexercised or a seller’s risk of being required to sell
the underlying asset at a disadvantageous price. In addition to the risks
associated with options generally, there is a risk of imperfect
correlations between the movement in prices of the option and the futures
contract, as well as the futures contract and the underlying security,
which could in turn impact the price of the
option. |
Emerging markets| When investing in emerging markets, the risks
of investing in foreign securities discussed below are heightened. Emerging
markets have unique risks that are greater than or in addition to those
associated with investing in developed markets because emerging markets are
generally smaller, less developed, less liquid and more volatile than the
securities markets of the U.S. and other foreign developed markets. There are
also risks of: greater political uncertainties; an economy’s dependence on
revenues from particular commodities or on international aid or development
assistance;
|
| |
| |
rjinvestmentmanagement.com | 115 |
Carillon
Mutual Funds
currency
transfer restrictions; a limited number of potential buyers for such securities;
delays and disruptions in securities settlement procedures; less stringent, or a
lack of, uniform accounting, auditing, financial reporting and recordkeeping
requirements or standards; less reliable clearance and settlement, registration
and custodial procedures; less reliable access to capital; unfamiliar foreign
investment structures; trading suspensions and other restrictions on investment;
and significant limitations on investor rights and recourse, both individually
and in combination with other shareholders. The economies and governments of
emerging market countries tend to be more unstable than those of developed
countries, resulting in more volatile rates of return than the developed markets
and significantly greater risk to investors. The governments of emerging market
countries may also be more unstable and more likely to impose capital controls,
nationalize a company or industry, place restrictions on foreign ownership and
on withdrawing sale proceeds of securities from the country, intervene in the
financial markets, and/or impose burdensome taxes that could adversely affect
security prices. There may be less publicly available or less reliable
information regarding issuers in emerging markets, which can impede a fund’s
ability to accurately evaluate foreign securities. In certain emerging market
countries, fraud and corruption may be more prevalent than in developed market
countries, and investor protections may be more limited than those in other
countries. It may be difficult to obtain or enforce legal judgments against
non‑U.S. companies and non‑U.S. persons in foreign jurisdictions, through either
the foreign judicial system or through a private arbitration process.
Additionally, a fund may experience more volatile rates of return. These matters
have the potential to impact a fund’s investment objective and
performance.
Equity securities | A fund’s equity securities
investments are subject to market risk. In general, the values of stocks and
other equity securities fluctuate, sometimes widely, in response to changes in a
company’s financial condition as well as general market, economic and political
conditions and other factors. A fund may experience a significant or complete
loss on its investment in an equity security. In addition, stock prices may be
particularly sensitive to rising interest rates, which increase borrowing costs
and the costs of capital. A fund may invest in the following equity securities,
which may expose a fund to the following additional risks:
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Common
Stocks. The value of a company’s common stock may fall as a result of
factors directly relating to that company, such as decisions made by its
management or decreased demand for the company’s products or services. A
stock’s value may also decline because of factors affecting not just the
company, but also companies in the same industry or sector. The price of a
company’s stock may also be affected by changes in financial markets that
are unrelated to the company, such as changes in interest rates, exchange
rates or industry regulation. Companies that pay dividends on their common
stock generally only do so after they invest in their own business and
make required payments to bondholders and on other debt and preferred
stock. Therefore, the value of a company’s common stock will usually be
more volatile than its bonds, other debt and preferred stock. Common stock
generally is subordinate to preferred stock upon the liquidation or
bankruptcy of the issuing company. In the event of an issuer’s bankruptcy,
there is substantial risk that there will be nothing left to pay common
stockholders after payments, if any, to bondholders and preferred
stockholders have been made. |
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Preferred
Stocks. Preferred securities,
including convertible preferred securities, are subject to issuer-specific
and market risks; however, preferred securities may be less liquid than
common stocks and offer more limited participation in the growth of an
issuer. If interest rates rise, the dividend on preferred stocks may be
less attractive, causing the price of preferred stocks to decline.
Distributions on preferred stocks generally are payable at the discretion
of an issuer and after required payments to bondholders. Preferred
shareholders may have only certain limited rights if distributions are not
paid for a stated period, but generally have no legal recourse against the
issuer and may suffer a loss of value if distributions are not paid.
Preferred stocks may have mandatory sinking fund provisions, as well as
provisions for their call or redemption prior to maturity which can have a
negative effect on their prices when interest rates decline. Because the
rights of preferred stock on distribution of a corporation’s assets in the
event of its liquidation are generally subordinated to the rights
associated with a corporation’s debt securities, in the event of an
issuer’s bankruptcy, there is substantial risk that there will be nothing
left to pay preferred stockholders after payments, if any, to bondholders
have been made. For this reason, the value of preferred securities will
usually react more strongly than bonds and other debt securities to actual
or perceived changes in the company’s financial condition or prospects.
Preferred stocks may also be subject to credit risk, which is the risk
that an issuer may be unable or unwilling to meet its financial
obligations. |
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Convertible
Securities. The investment value of
a convertible security (“convertible”) is based on its yield and tends to
decline as interest rates increase. The conversion value of a convertible
is the market value that would be received if the convertible were
converted to its underlying common stock. Since it derives a portion of
its value from the common stock into which it may be converted, a
convertible is also subject to the same types of market and
issuer-specific risks that apply to the underlying common stock.
Convertible securities are subject to the risk that the credit standing of
the issuer may have an effect on the convertible securities’ investment
value. Convertible securities also are sensitive to movements in interest
rates. Generally, a convertible security is subject to the market risks of
stocks when the underlying stock’s price is high relative to the
conversion price, and is subject to the market risks of debt securities
when the underlying stock’s price is low relative to the conversion price.
A convertible may be subject to redemption at the option of the issuer at
a price established in the convertible’s governing instrument, which may
be less than the current market price of the security. Convertibles
typically are “junior” securities, which means an issuer may pay interest
on its non‑convertible debt before it can make payments on its
convertibles. In the event of a liquidation, holders of convertibles may
be paid before a company’s common stockholders but after holders of a
company’s senior debt obligations. |
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Depositary
Receipts. A fund may invest in securities issued by foreign companies
through American Depositary Receipts (“ADRs”), Global Depositary Receipts
(“GDRs”) and European Depositary Receipts (“EDRs”). These securities are
subject to many of the risks inherent in investing in foreign securities,
including, but not limited to, currency exchange rate fluctuations,
political and financial instability in the home country of a particular
depositary receipt, less liquidity, more volatility, less government
regulation and supervision and delays in transaction
settlement. |
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REITS. REITS or other real estate-related
securities are subject to the risks associated with direct ownership of
real estate, including, among other risks, declines in the value of real
estate, risks related to general and local economic conditions or changes
in demographic trends or tastes, increases in operating expenses, defaults
by mortgagors or other borrowers and tenants, lack of availability of
mortgage funds or financing, extended vacancies of properties, especially
during economic downturns, losses due to environmental liabilities, and
adverse governmental, legal or regulatory action (such as changes to
zoning laws, changes in interest rates, condemnation, tax increases,
regulatory limitations on rents and operating expenses, or enforcement of
or changes to environmental regulations). Additionally, REITs are
dependent on the skills of their managers. REITs may not be diversified
geographically or by property or tenant type. Shares of REITs may trade
less frequently and, therefore, are subject to more erratic price
movements than securities of larger issuers. REITs typically incur fees
that are separate from those incurred by a fund, meaning a fund’s
investment in REITs will result in the layering of expenses such that as a
shareholder, a fund will indirectly bear a proportionate share of a REIT’s
operating expenses. Any domestic REIT could be adversely affected by
failure to qualify for tax‑free “pass-through” of distributed net income
and net realized gains under the Internal Revenue Code, or to maintain its
exemption from registration under the 1940 Act. |
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Dividend-Paying
Stocks. Securities of companies that have historically paid a high
dividend yield may reduce or discontinue their dividends, reducing the
yield of the fund. Low priced securities in the fund may be more
susceptible to these risks. Past dividend payments are not a guarantee of
future dividend payments. Securities that pay dividends may be sensitive
to changes in interest rates, and a sharp increase in interest rates, or
other market downturn, could result in a decision to decrease or eliminate
a dividend. Also, the market return of high dividend yield securities, in
certain market conditions, may perform worse than other investment
strategies or the overall stock market. Changes to the dividend policies
of companies in which a fund invests and the capital resources available
for dividend payment at such companies may harm fund performance. A fund
may also be harmed by changes to the favorable federal income tax
treatment generally afforded to dividends. |
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Rights
and Warrants. Investments in rights and warrants may be more speculative
than certain other types of investments because rights and warrants do not
carry dividend or voting rights with respect to the underlying securities
or any rights in the assets of the issuer. In addition, the value of a
right or a warrant does not necessarily change with the value of the
underlying securities and a right or a warrant ceases to have value if it
is not exercised prior to its expiration date. If a warrant or right to
subscribe to additional shares is not exercised or, when permissible, sold
prior to the warrant’s or right’s expiration date or redemption by the
issuer, a fund could lose all or substantially all of the purchase price
of the warrant or right. The market for warrants and rights may be very
limited and there may at times not be a liquid secondary market for
warrants and rights. |
Focused holdings | For funds that normally hold
a core portfolio of securities of fewer companies than other funds, the increase
or decrease of the value of a single investment may have a greater impact on the
fund’s NAV and total return when compared to other diversified funds. Although a
focused portfolio has the potential to generate attractive returns over time, it
also may increase a fund’s volatility.
Foreign securities | Investments in foreign
securities involve greater risks than investing in domestic securities. As a
result, a fund’s return and NAV may be affected by fluctuations in currency
exchange rates or political or economic conditions and regulatory requirements
in a particular country. Foreign markets, as well as foreign economies and
political systems, may be less stable than U.S. markets, and changes in the
exchange rates of foreign currencies can affect the value of a fund’s foreign
assets. Foreign laws and accounting standards typically are not as strict as
they are in the U.S., and there may be less government regulation and
supervision of foreign stock exchanges, brokers and listed companies. In
addition, there may be less public information available about foreign
companies. The unavailability and/or unreliability of public information
available may impede the fund’s ability to accurately evaluate foreign
securities. Custodial and/or settlement systems in foreign markets may not be
fully developed and the laws of certain countries may limit the ability to
recover assets if a foreign bank or depository or their agents goes bankrupt.
Foreign issuers may utilize unfamiliar corporate organizational structures,
which can limit investor rights and recourse. Moreover, it may be difficult to
enforce contractual obligations or invoke judicial or arbitration processes
against non‑U.S. companies and non‑U.S. persons in foreign jurisdictions.
Foreign securities may be less liquid than domestic securities and there may be
delays in transaction settlement in some foreign markets. Securities of issuers
traded on foreign exchanges may be suspended, either by the issuers themselves,
by an exchange, or by government authorities. Over a given period of time,
foreign securities may underperform U.S. securities—sometimes for years. A fund
could also underperform if it invests in countries or regions whose economic
performance falls short. The risks associated with investments in governmental
or quasi-governmental entities of a foreign country are heightened by the
potential for unexpected governmental change, which may lead to default or
expropriation, and inadequate government oversight and accounting. Obligations
of supranational entities are subject to the risk that the governments on whose
support the entity depends for its financial backing or repayment may be unable
or unwilling to provide that support. The effect of recent, worldwide economic
instability on specific foreign markets or issuers may be difficult to predict
or evaluate. Some national economies continue to show profound instability,
which may in turn affect their international trading and financial partners or
other members of their currency bloc. Foreign security risk may also apply to
ADRs, GDRs and EDRs.
Geographic concentration | Geographic
concentration risk is the risk that from time to time, based on market or
economic conditions, a fund may invest a significant portion of its assets in
the securities of issuers located in, or with significant economic ties to, a
single country or geographic region, which could increase the risk that
economic, market political, business, regulatory, diplomatic, social and
environmental conditions in that particular country or geographic region may
have a significant impact on a fund’s performance. Investing in such a manner
could cause a fund’s performance to be more volatile than the
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performance
of more geographically diverse funds. The economies and financial markets of
certain countries or regions can be highly interdependent. Therefore, a decline
in the economies or financial markets of one country or region may adversely
affect the economies or financial markets of another.
Japan | A fund’s investments in the securities
of Japanese issuers render a fund susceptible to changes in Japanese economic
and political conditions, the reliability of financial information available
concerning Japanese issuers, and the legal, tax and regulatory environment
surrounding these issuers. The Japanese economy is heavily dependent upon
international trade, and may be adversely affected by global competition, trade
tariffs, embargos, boycotts, other government interventions and protectionist
measures, excessive regulation, changes in international trade agreements, the
economic conditions of its trading partners, competition from emerging
economies, the performance of the global economy, and regional and global
conflicts. Political tensions between Japan and its trading partners could
adversely affect the economy, especially the export sector, and destabilize the
region as a whole. The domestic Japanese economy faces several concerns,
including large government deficits, a declining domestic population and low
birth rate, workforce shortages, and inflation. Japan also has an aging
workforce, and its financial system faces concerns including extensive
cross-ownership by major corporations, a changing corporate government
structure, and large government deficits. The Japanese government tax, fiscal
and monetary policies may also have negative impacts on the Japanese economy.
Currency fluctuations, which have been significant at times, can have a
considerable impact on exports and the overall Japanese economy. The Japanese
yen may be affected by currency volatility elsewhere in Asia, especially
Southeast Asia. In addition, the yen has had a history of unpredictable and
volatile moves against the U.S. dollar. Japanese intervention in the currency
markets could cause the value of the yen to fluctuate sharply and unpredictably
and could cause losses to investors. Japan is located in a part of the world
that has historically been prone to natural disasters such as earthquakes,
tsunamis, typhoons and volcanic eruptions. Relations with its neighbors,
particularly China, North Korea, South Korea and Russia, have at times been
strained due to territorial disputes, historical animosities and defense
concerns. As a country with few natural resources, Japan is also heavily
dependent on oil and other commodity imports, and higher commodity prices could
therefore have a negative impact on the Japanese economy. These and other
factors could have a negative impact on a fund’s performance and increase the
volatility of an investment in a fund.
Growth stocks | Growth companies are expected
to increase their earnings at a certain rate. When these expectations are not
met, the prices of these stocks may decline, even if earnings showed an absolute
increase. Growth company stocks also typically lack the dividend yield that can
cushion stock prices in market downturns. The price of a growth company’s stock
may fail or not approach the value that has been placed on it. If a growth
investment style shifts out of favor based on market conditions and investor
sentiment, a fund could underperform funds that use a value or other non‑growth
approach to investing or have a broader investment style.
Hedging | A fund may enter into hedging
transactions with the intention of reducing or controlling risk. It is possible
that hedging strategies will not be effective in controlling risk, due to
unexpected non-correlation (or even positive correlation) between the hedging
instrument and the position being hedged, increasing, rather than reducing, both
risk and losses. To the extent that a fund enters into hedging transactions, the
hedges will not be static but rather will need to be continually adjusted based
on a subadviser’s assessment of market conditions, as well as the expected
degree of non-correlation between the hedges and the portfolio being hedged. The
success of a fund’s hedging strategies will depend on a subadviser’s ability to
implement such strategies efficiently and cost-effectively, as well as on the
accuracy of a subadviser’s judgments concerning the hedging positions to be
acquired by a fund. A counterparty to a hedging transaction may be unable to
honor its financial obligation to a fund. In addition, a subadviser may be
unable to close the transaction at the time it would like or at the price it
believes the security is currently worth. A fund may not, in general, attempt to
hedge all market or other risks inherent in a fund’s investments, and may hedge
certain risks only partially, if at all. Certain risks, either in respect of
particular investments or in respect of a fund’s overall portfolio, may not be
hedged, particularly if doing so is economically unattractive. As a result,
various directional market risks may remain unhedged. Gains or losses from
positions in hedging instruments may be much greater than the instrument’s
original cost. If a fund uses a hedging instrument at the wrong time or judges
the market conditions incorrectly, or the hedged instrument does not correlate
to the risk sought to be hedged, the hedge might be unsuccessful. The use of
hedges may fail to mitigate risks, reduce a fund’s return, or create a loss. In
addition, hedges, even when successful in mitigating risk, may not prevent a
fund from experiencing losses on its investments. Hedging instruments may also
reduce or eliminate gains that may otherwise have been available had a fund not
used the hedging instruments. When hedging is combined with leverage, a fund
risks losses that are multiplied by the degree of leverage used.
High-yield securities | Investments in
securities rated below investment grade, or “junk bonds,” generally involve
significantly greater risks of loss of your money than an investment in
investment grade bonds. Compared with issuers of investment grade bonds, issuers
of junk bonds are more likely to encounter financial difficulties and to be
materially affected by these difficulties, leading to a greater risk that the
issuer will default on the timely payment of principal and interest. Rising
interest rates may compound these difficulties and reduce an issuer’s ability to
repay principal and interest obligations. Issuers of lower-rated securities also
have a greater risk of default or bankruptcy, especially when the economy is
weak or expected to become weak. If an issuer defaults, a fund may incur
additional expenses to seek recovery. Issuers of securities that are in default
or have defaulted may fail to resume principal or interest payments, in which
case a fund may lose its entire investment. Additionally, due to the greater
number of considerations involved in the selection of a fund’s securities, the
achievement of a fund’s objective depends more on the skills of the portfolio
manager than investing only in higher-rated securities. Therefore, your
investment may experience greater volatility in price and yield. High-yield
securities may be less liquid than higher quality investments. A security
whose
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rating has been lowered may be particularly difficult to sell. The higher yields
of high-yielding securities may not reflect the value of the income stream that
holders of such securities may expect, but rather the risk that such securities
may lose a substantial portion of their value as a result of their issuer’s
financial restructuring or default. Investments in high-yield securities are
inherently speculative.
Income | A fund’s income could decline due to
falling market interest rates. In a falling interest rate environment, a fund
may be required to invest its assets in lower-yielding securities. Because
interest rates vary, it is impossible to predict the income or yield of a fund
for any particular period.
Inflation-indexed debt securities |
Inflation-indexed debt securities, including Treasury Inflation Protected
Securities (“TIPS”), may be adversely affected by changes in real interest
rates, which are market interest rates that are adjusted for inflation. Unlike a
conventional debt security, whose issuer makes regular fixed interest payments
and repays the face value of the bond at maturity, an inflation-indexed debt
security provides principal payments and interest payments that vary as the
principal and/or interest are adjusted over time to reflect a rise or a drop in
the reference inflation-related index. The prices of inflation-indexed debt
securities tend to decrease when real interest rates increase and increase when
real interest rates decrease. Additionally, the principal value of an
inflation-indexed debt security is periodically adjusted according to the rate
of inflation and, as a result, interest payments on inflation-indexed debt
securities may vary widely. If an inflation index rate declines, the principal
value and interest payable on an inflation-indexed security also will decline,
adversely affecting the fund’s investment. Because the interest and/or principal
payments on an inflation-indexed debt security are adjusted periodically for
changes in inflation, the income distributed by a fund may be irregular. For
inflation-indexed debt securities for which repayment of the original principal
upon maturity, as adjusted for inflation, is not guaranteed, the adjusted
principal value of the securities repaid at maturity may be less than the
original principal value. There can be no assurance that an inflation index will
accurately measure the real rate of inflation in the prices of goods and
services. The fund’s investments in inflation-indexed investments may lose value
in the event that the actual rate of inflation is different from the rate of the
inflation index. In periods of deflation, the fund may have no income at all
from such investments. Any increase in the principal amount of an
inflation-indexed debt security will be taxable as ordinary income, even though
the fund will not receive the increased principal until maturity.
Initial public offerings | The market value of
shares sold in an initial public offering (“IPO”) may fluctuate considerably due
to factors such as the absence of a prior public market, unseasoned trading, the
small number of shares available for trading and limited information about the
issuer. In addition, the prices of securities sold in IPOs may be highly
volatile or may decline shortly after the IPO. The purchase of IPO shares may
also involve high transaction costs. The limited number of shares available for
trading in some IPOs may make it difficult for a fund to acquire shares of an
issuer in which it would like to invest, and may also make it more difficult for
a fund to buy or sell significant amounts of shares without an unfavorable
impact on prevailing prices. . In addition, some companies initially offering
their shares publicly may be involved in relatively new industries or lines of
business, which may not be widely understood by investors. Many IPOs are by
small- or micro-capitalization companies that are undercapitalized. Investments
in IPOs may result in losses to a fund.
Interest rate | Generally, the value of
investments with interest rate risk, such as fixed-income securities or
derivatives, will move in the opposite direction to movements in interest rates.
The value of a fund’s fixed income investments or derivatives typically will
fall when interest rates rise. Additionally, the value of dividend-paying stocks
may decline when interest rates rise, as rising interest rates can reduce
companies’ profitability and their ability to pay dividends. Factors including
central bank monetary policy rising inflation rates, and changes in general
economic conditions may cause interest rates to rise. It is difficult to predict
the pace at which interest rates might increase or decrease, or the timing,
frequency, or magnitude of such changes. Debt securities with longer durations,
such as those with intermediate and long terms to maturity, tend to be more
sensitive to changes in interest rates, usually making them more volatile than
debt securities with shorter durations. For example, if a bond has a duration of
eight years, a 1% increase in interest rates could be expected to result in a 8%
decrease in the value of the bond. Interest rates may rise, perhaps
significantly and/or rapidly, potentially resulting in substantial losses to a
fund due to, among other factors, a decline in the value of a fund’s fixed
income securities, heightened volatility in the fixed income markets and the
reduced liquidity of certain fixed income investments. Conversely, during
periods of very low or negative interest rates, a fund may be unable to maintain
positive returns or pay dividends to fund shareholders. In addition, decreases
in fixed-income dealer market-making capacity may lead to lower trading volume,
heightened volatility, wider bid-ask spreads, and less transparent pricing in
certain fixed-income markets. A fund may not be able to hedge against changes in
interest rates or may choose not to do so for cost or other reasons. In
addition, any hedges may not work as intended.
Issuer | The value of a security may decline
for a number of reasons which directly relate to the issuer, such as management
performance, financial leverage and reduced demand for the issuer’s goods or
services, as well as the historical and prospective earnings of the issuer and
the value of its assets.
Large-cap companies | Investments in large-cap
companies may underperform other segments of the market, in some cases for
extended periods of time, because such companies may be less responsive to
competitive challenges and opportunities, such as changes in technology and
consumer tastes. Large-cap companies generally are expected to be less volatile
than companies with smaller market capitalizations. However, large-cap companies
may be unable to attain the high growth rates of successful smaller companies,
especially during periods of economic expansion, and may instead focus their
competitive efforts on maintaining or expanding their market share.
Leverage | Certain transactions of a fund may
give rise to a form of leverage. Such transactions may include, among
others, the use of buybacks, dollar rolls, and when-issued, delayed delivery or
forward commitment transactions. Certain derivatives that a fund may use
may also create leverage. Derivatives that
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leverage can result in losses to a fund that exceed the amount originally
invested in the derivatives. Certain types of leveraging transactions, such
as short sales that are not “against the box,” could be subject to unlimited
losses in cases where a fund, for any reason, is unable to close out the
transaction. The use of leverage may cause a fund to liquidate portfolio
positions when it may not be advantageous to do so to satisfy its obligations or
to meet segregation requirements. Leveraging may cause a fund to be more
volatile than if the fund had not been leveraged. This is because leveraging
tends to exaggerate the effect of any increase or decrease in the value of a
fund’s portfolio securities.
Liquidity | Liquidity risk is the possibility
that a fund’s securities may have limited marketability, be subject to
restrictions on resale, be difficult or impossible to purchase or sell at
favorable times or prices, or become less liquid in response to market
developments or adverse credit events that may affect issuers or guarantors of a
debt security, any of which could have the effect of decreasing the overall
level of the fund’s liquidity. The market prices for such securities may be
volatile. An inability to sell a portfolio position can adversely affect a
fund’s NAV or prevent a fund from being able to take advantage of other
investment opportunities. A fund could lose money if it cannot sell a security
at the time and price that would be most beneficial to a fund. A fund may be
required to dispose of investments at unfavorable times or prices to satisfy
obligations, which may result in losses or may be costly to a fund. Market
developments may cause a fund’s investments to become less liquid and subject to
erratic price movements. In addition, the market-making capacity of dealers in
certain types of securities has been reduced in recent years, in part as a
result of structural and regulatory changes, such as fewer proprietary trading
desks and increased capital requirements for broker-dealers. Further, many
broker-dealers have reduced their inventory of certain debt securities. This
could negatively affect a fund’s ability to buy or sell debt securities and
increase the related volatility and trading costs. For example, liquidity risk
may be magnified in rising interest rate environments due to higher than normal
redemption rates.
Management and Strategy | The value of your
investment depends on the judgment of the subadviser about the quality, relative
yield or value of, or market trends affecting, a particular security, industry,
sector, region, or market segment, or about the economy or interest rates
generally. This judgment may prove to be incorrect or otherwise may not produce
the intended results, which may result in losses to the fund. Investment
strategies employed by the subadviser in selecting investments for a fund may
not result in an increase in the value of your investment or in overall
performance equal to other investments.
Market | A
fund is subject to the risk that the securities markets will move down,
sometimes rapidly and unpredictably, based on overall economic conditions and
other factors, which may negatively affect a fund’s performance. Equity
securities generally have greater price volatility than fixed-income securities,
although under certain market conditions fixed-income securities may have
comparable or greater price volatility. During a general downturn in the
securities markets, multiple asset classes may decline in value simultaneously.
In some cases, traditional market participants have been less willing to make a
market in some types of debt instruments, which has affected the liquidity of
those instruments. During times of market turmoil, investors tend to look to the
safety of securities issued or backed by the U.S. Treasury, causing the prices
of these securities to rise and the yields to decline. Reduced liquidity in
fixed income and credit markets may negatively affect many issuers worldwide.
Prices in many financial markets have increased significantly over the last
decade, but there have also been periods of adverse market and financial
developments and cyclical change during that timeframe, which have resulted in
unusually high levels of volatility in domestic and foreign financial markets
that has caused losses for investors and may occur again in the future,
particularly if markets enter a period of uncertainty or economic weakness.
Periods of unusually high volatility in the financial markets and restrictive
credit conditions, sometimes limited to a particular sector or geographic
region, continue to recur.
The
value of a security may decline due to adverse issuer-specific conditions or
general market conditions unrelated to a particular issuer, such as real or
perceived adverse geopolitical, regulatory, market, economic or other
developments that may cause broad changes in market value, changes in the
general outlook for corporate earnings, changes in interest, currency or
inflation rates, lack of liquidity in the markets, public perceptions concerning
these developments or adverse market sentiment generally. The value of a
security may also decline due to factors that affect a particular industry or
industries, such as tariffs, labor shortages or increased production costs and
competitive conditions within an industry. Changes in the financial condition of
a single issuer or market segment also can impact the market as a whole.
Geopolitical
and other events, including war, terrorism, economic uncertainty, trade
disputes, pandemics, public health crises, natural disasters and related events
have led, and in the future may continue to lead, to instability in world
economies and markets generally and reduced liquidity, which may adversely
affect the value of your investment. Such market disruptions have caused, and
may continue to cause, broad changes in market value, negative public
perceptions concerning these developments, a reduction in the willingness and
ability of some lenders to extend credit, difficulties for some borrowers in
obtaining financing on attractive terms, if at all, and adverse investor
sentiment or publicity. Changes in value may be temporary or may last for
extended periods. Adverse market events may also lead to increased shareholder
redemptions, which could cause a fund to sell investments at an inopportune time
to meet redemption requests by shareholders and may increase a fund’s portfolio
turnover, which could increase the costs that a fund incurs and lower a fund’s
performance. Even when securities markets perform well, there is no assurance
that the investments held by a fund will increase in value along with the
broader market.
Policy
changes by the U.S. government and/or Federal Reserve and political events
within the U.S. and abroad, such as changes in the U.S. presidential
administration and Congress, the U.S. government’s inability at times to agree
on a long-term budget and deficit reduction plan, the threat of a federal
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government
shutdown and threats not to increase the federal government’s debt limit which
could result in a default on the government’s obligations, may affect investor
and consumer confidence and may adversely impact financial markets and the
broader economy, perhaps suddenly and to a significant degree. The severity or
duration of adverse economic conditions may also be affected by policy changes
made by governments or quasi-governmental organizations. Global economies and
financial markets are becoming increasingly interconnected, which increases the
possibility of many markets being affected by events in a single country or
events affecting a single or small number of issuers.
Markets
and market participants are increasingly reliant upon both publicly available
and proprietary information data systems. Data imprecision, software or other
technology malfunctions, programming inaccuracies, unauthorized use or access,
the execution of ransomware and other cyberattacks, and similar circumstances
may impair the performance of these systems and may have an adverse impact upon
a single issuer, a group of issuers, or the market at large. In certain cases,
an exchange or market may close or issue trading halts on either specific
securities or even the entire market, which may result in a fund being, among
other things, unable to buy or sell certain securities or financial instruments
or accurately price its investments. These fluctuations in securities prices
could be a sustained trend or a drastic movement. The financial markets
generally move in cycles, with periods of rising prices followed by periods of
declining prices. The value of your investment may reflect these
fluctuations.
Recent Market Events | Both U.S. and
international markets have experienced significant volatility in recent months
and years. As a result of such volatility, investment returns may fluctuate
significantly. Moreover, the risks discussed herein associated with an
investment in a fund may be increased. Deteriorating economic fundamentals may
increase the risk of default or insolvency of particular issuers, negatively
impact market value, increase market volatility, cause credit spreads to widen,
reduce bank balance sheets and cause unexpected changes in interest rates. Any
of these could cause an increase in market volatility, reduce liquidity across
various sectors or markets or decrease confidence in the markets. Historical
patterns of correlation among asset classes may break down in unanticipated ways
during times of high volatility, disrupting investment programs and potentially
causing losses.
Although
interest rates were unusually low in recent years in the U.S. and abroad, in
2022, the U.S. Federal Reserve and certain foreign central banks began to raise
interest rates as part of their efforts to address rising inflation. In
addition, ongoing inflation pressures could continue to cause an increase in
interest rates and/or negatively impact issuers. It is difficult to accurately
predict the pace at which interest rates might increase or start decreasing, the
timing, frequency or magnitude of any such changes in interest rates, or when
such changes might stop or reverse course. Additionally, various economic and
political factors, such as rising inflation rates, could cause the Federal
Reserve or other foreign banks to change their approach in the future as such
actions may result in an economic slowdown both in the U.S. and abroad.
Unexpected changes in interest rates could lead to significant market volatility
or reduce liquidity in certain sectors of the market. Also, regulators have
expressed concern that rate increases may cause investors to sell fixed income
securities faster than the market can absorb them, contributing to price
volatility. Over the longer term, rising interest rates may present a greater
risk than has historically been the case due to the prior period of relatively
low rates and the effect of government fiscal and monetary policy initiatives
and potential market reaction to those initiatives, or their alteration or
cessation. It is difficult to predict the impact on various markets of
significant rate increases or other significant policy changes.
In
March 2023, the shutdown of certain financial institutions in the U.S. and
questions regarding the viability of other financial institutions raised
economic concerns over disruption in the U.S. and global banking systems. There
can be no certainty that the actions taken by the U.S. or foreign governments
will be effective in mitigating the effects of financial institution failures on
the economy and restoring public confidence in the U.S. and global banking
systems.
Some
countries, including the U.S., have in recent years adopted more protectionist
trade policies. Slowing global economic growth; the rise in protectionist trade
policies; changes to international trade agreements; risks associated with the
trade agreement between the United Kingdom and the European Union the risks
associated with ongoing trade negotiations with China; political or economic
dysfunction within some nations, including major producers of oil; and dramatic
changes in commodity and currency prices could have adverse effects that cannot
be foreseen at the present time.
Tensions,
war or open conflict between nations, such as between Russia and Ukraine, in the
Middle East or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. The potential for wider
conflict has had, and could continue to have, severe adverse effects on regional
and global economies and could further increase volatility in the financial
markets. The extent and duration of ongoing hostilities and military actions and
the repercussions of such actions are impossible to predict. These events have
resulted in and could continue to result in significant market disruptions,
including certain industries and sectors such as the oil and gas markets, and
may further strain global supply chains and negative affect inflation and global
growth. The resulting adverse market conditions could be prolonged. Those events
present material uncertainty and risk with respect to markets globally and the
performance of a fund and its investments or operations could be negatively
impacted whether or not a fund invests in securities of issuers located in or
with significant exposure to the countries or regions directly affected.
Regulators
in the U.S. have proposed and recently adopted a number of changes to
regulations involving the markets and issuers, some of which apply to a fund.
The full effect of various newly-adopted regulations is not currently known.
Additionally, it is not clear whether the proposed regulations will be adopted.
However, due to the broad scope of the new and proposed regulations, certain
changes could limit a fund’s ability to
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pursue
its investment strategies or make certain investments, or may make it more
costly for a fund to operate, which may impact performance. Further,
advancements in technology may also adversely impact market movements and
liquidity and may affect the overall performance of a fund. For example, the
advanced development and increased regulation of artificial intelligence may
impact the economy and the performance of a fund. As artificial intelligence is
used more widely, the value of a fund’s holdings may be impacted, which could
impact the overall performance of a fund.
High
public debt in the U.S. and other countries creates ongoing systemic and market
risks and policymaking uncertainty. There is no assurance that the U.S. Congress
will act to raise the nation’s debt ceiling; a failure to do so could cause
market turmoil and substantial investment risks that cannot now be fully
predicted. Unexpected political, regulatory and diplomatic events within the
U.S. and abroad may affect investor and consumer confidence and may adversely
impact financial markets and the broader economy.
Certain
illnesses spread rapidly and have the potential to significantly and adversely
affect the global economy. The impact of epidemics and/or pandemics that may
arise in the future could negatively affect the economies of many nations,
individual companies and the global securities and commodities markets,
including their liquidity, in ways that cannot necessarily be foreseen at the
present time and could last for an extended period of time. China’s economy,
which has been sustained largely through debt-financed spending on housing and
infrastructure, appears to be experiencing a significant slowdown and growing at
a lower rate than prior years. Due to the size of China’s economy, such a
slowdown could impact financial markets and the broader economy.
Economists
and others have expressed increasing concern about the potential effects of
global climate change on property and security values. Impacts from climate
change may include significant risks to global financial assets and economic
growth. A rise in sea levels, an increase in powerful windstorms and/or a
climate-driven increase in sea levels or flooding could cause coastal properties
to lose value or become unmarketable altogether. Certain issuers, industries and
regions may be adversely affected by the impacts of climate change, including on
the demand for and the development of goods and services and related production
costs, and the impacts of legislation, regulation and international accords
related to climate change, as well as any indirect consequences of regulation or
business trends driven by climate change. Regulatory changes and divestment
movements tied to concerns about climate change could adversely affect the value
of certain land and the viability of industries whose activities or products are
seen as accelerating climate change. Losses related to climate change could
adversely affect, among others, corporate issuers and mortgage lenders, the
value of mortgage-backed securities, the bonds of municipalities that depend on
tax or other revenues and tourist dollars generated by affected properties, and
insurers of the property and/or of corporate, municipal or mortgage-backed
securities.
Market timing | Frequent trading by fund
shareholders poses risk to other shareholders in a fund, including (i) the
dilution of a fund’s NAV, (ii) an increase in a fund’s expenses, and
(iii) interference with a portfolio manager’s ability to execute efficient
investment strategies. Because of specific securities a fund may invest in, it
could be subject to the risk of market timing activities by fund shareholders.
Some examples of these types of securities are high-yield, small‑cap and foreign
securities. Typically, foreign securities offer the most opportunity for these
market timing activities. A fund generally prices these foreign securities using
their closing prices from the foreign markets in which they trade, typically
prior to a fund’s calculation of its NAV. These prices may be affected by events
that occur after the close of a foreign market but before a fund prices its
shares. In such instances, a fund may fair value foreign securities. However,
some investors may engage in frequent short-term trading in a fund to take
advantage of any price differentials that may be reflected in the NAV of a
fund’s shares. There is no assurance that fair valuation of securities can
reduce or eliminate market timing. There is no guarantee that Carillon Tower
Advisers, Inc., as the manager and transfer agent of the funds, can detect all
market timing activities.
Master Limited Partnerships | Investing in MLPs
involves certain risks related to investing in the underlying assets of the MLPs
and risks associated with pooled investment vehicles. Investments held by MLPs
may be relatively illiquid, limiting the MLPs’ ability to change their
portfolios promptly in response to changes in economic or other conditions. MLPs
may have limited financial resources, their securities may trade infrequently
and in limited volume, they may be difficult to value, and they may be subject
to more abrupt or erratic price movements than securities of larger or more
broadly based companies. MLPs holding credit-related investments are subject to
interest rate risk and the risk of default on payment obligations by debt
issuers. MLPs that concentrate in a particular industry or a particular
geographic region are subject to risks associated with such industry or
region.
The
risks of investing in an MLP generally include those inherent in investing in a
partnership as opposed to a corporation. For example, state law governing
partnerships is often less restrictive than state law governing corporations.
Accordingly, there may be fewer protections afforded investors in an MLP than
investors in a corporation. Holders of units in MLPs have more limited rights to
vote on matters affecting the partnership and may be required to sell their
common units at an undesirable time or price. A fund invests as a limited
partner, and normally would not be liable for the debts of an MLP beyond the
amounts a fund has contributed but it would not be shielded to the same extent
that a shareholder of a corporation would be. In certain instances, creditors of
an MLP would have the right to seek a return of capital that had been
distributed to a limited partner. The right of an MLP’s creditors would continue
even after a fund had sold its investment in the partnership. MLPs typically
invest in real estate, oil and gas equipment leasing assets, but they also
finance entertainment, research and development, and other projects. A fund’s
investments in MLPs may be limited in order for a fund to meet the requirements
necessary to qualify as a “regulated investment company” under the Internal
Revenue Code of 1986, as amended (“Internal Revenue Code”).
Distributions
from an MLP may consist in part of a return of the amount originally invested,
which would not be taxable to the extent the distributions do not exceed the
investor’s adjusted basis on its MLP interest. These reductions in a fund’s
adjusted tax basis in the MLP securities will increase the amount of
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gain
(or decrease the amount of loss) recognized by a fund on a subsequent sale of
the securities. A fund could recognize both gain that is treated as ordinary
income and a capital loss on a disposition of an MLP equity security (or on an
MLP’s disposition of an underlying asset) and would not be able to use the
capital loss to offset that gain.
Much
of the benefit a fund derives from its investment in equity securities of MLPs
is a result of MLPs generally being treated as partnerships for U.S. federal
income tax purposes. A change in current tax law, or a change in the business of
a given MLP, could result in an MLP being treated as a corporation for U.S.
federal income tax purposes and subject to corporate level tax on its income,
and could reduce the amount of cash available for distribution by the MLP to its
unit holders, such as a fund. If an MLP were classified as a corporation for
federal income tax purposes, the MLP may incur significant federal and state tax
liability, likely causing a reduction in the value of a fund’s shares.
Effective
for taxable years beginning after December 31, 2017 and before January 1, 2026,
the Internal Revenue Code generally allows individuals and certain other
non-corporate entities, such as partnerships, a deduction for 20% of “qualified
publicly traded partnership income” such as income from MLPs. However, the
Internal Revenue Code does not include any provision for a regulated investment
company to pass the character of its qualified publicly traded partnership
income through to its shareholders. As a result, although the Treasury
Department has announced that it is considering adopting regulations to provide
a pass-through, an investor who invests directly in MLPs will be able to receive
the benefit of that deduction, while a shareholder in a fund currently will
not.
Maturity | A fund will invest in fixed income
securities of varying maturities. A fixed income security’s maturity is one
indication of the interest rate exposure of a security. Generally, the longer a
fixed income security’s maturity, the greater the risk. Conversely, the shorter
a fixed income security’s maturity, the lower the risk.
Micro-cap companies | Investments in micro-cap
companies are subject to substantially greater risks of loss and price
fluctuations, sometimes rapidly and unpredictably, because their earnings and
revenues tend to be less predictable. In addition, some companies may experience
significant losses. Since micro-capitalization companies may not have an
operating history, product lines, or financial resources, their share prices
also tend to be more volatile and their markets less liquid than companies with
larger market capitalizations, and they can be sensitive to changes in overall
economic conditions, interest rates, borrowing costs and earnings. The shares of
micro-capitalization companies tend to trade less frequently than those of
larger, more established companies, which can adversely affect the pricing of
these securities and the future ability to sell these securities.
Micro-capitalization companies face greater risk of business failure, which
could increase the volatility of a fund’s portfolio.
Mid‑cap companies | Investments in mid‑cap
companies generally involve greater risks than investing in large-capitalization
companies. Mid‑cap companies may have narrower commercial markets and limited
managerial and financial resources compared to larger, more established
companies. The performance of mid‑cap companies can be more volatile, and their
stocks less liquid, compared to larger, more established companies, which could
increase the volatility of a fund’s portfolio and performance. Shareholders of a
fund that invests in mid‑cap companies should expect that the value of the
fund’s shares will be more volatile than a fund that invests exclusively in
large‑cap companies. Generally, the smaller the company size, the greater these
risks.
Mortgage- and asset-backed securities |
Mortgage- and asset-backed security risk arises in part from the potential for
mortgage failure, particularly during periods of market downturn, premature
repayment of principal, or a delay in the repayment of principal, and can
increase in an unstable or depressed housing market. The reduced value of the
fund’s securities and the potential loss of principal as a result of a
mortgagor’s failure to repay would have a negative impact on the fund. If a
borrower repays the principal early, a fund may have to reinvest the proceeds at
a lower rate, thereby reducing a fund’s income. Conversely, a delay in the
repayment of principal could lengthen the expected maturity of the securities,
thereby increasing the potential for loss when prevailing interest rates rise,
which could cause the values of the securities to fall sharply. In a
to‑be‑announced (“TBA”) mortgage-backed transaction, a fund and the seller agree
upon the issuer, interest rate and terms of the underlying mortgages. However,
the seller does not identify the specific underlying mortgages until it issues
the security. TBA mortgage-backed securities increase fund exposure to interest
rate risks because the underlying mortgages may be less favorable than
anticipated by a fund.
Natural resources and precious metals | A
fund’s investments in the common stock of companies in natural resources and
precious metals businesses and ETFs that invest in these companies or directly
in precious metals are subject to the risks associated with natural resources
and precious metals investments in addition to the general risk of the stock
market. This means a fund is more vulnerable to price movements of natural
resources and precious metals and market, economic and factors that particularly
affect the metals and mining, agriculture, energy, refining and chemicals,
energy transition and other industries. There is a risk that a fund will perform
poorly when the stock market otherwise is performing well. Investments in
natural resources and precious metals-related securities can be affected by
numerous factors, including changes in supply of, or demand for, various natural
resources or precious metals, changes in energy prices, international political
and economic developments, economic conditions in large importation countries,
import controls, civil conflict, actions to address climate change or other
environmental factors, energy conservation, the success of exploration projects,
fluctuation and changes in commodity or other raw material prices, production
spending, changes in exchange rates, interest rates or inflation rates and/or
investor expectations concerning such rates, increased competition,
technological developments, labor relations, and tax and other government
regulation and intervention. These factors could adversely affect the
performance of companies in the natural resources and precious metals businesses
and ETFs that invest in these companies or directly in precious metals, and the
fund’s performance could be affected by these factors.
Companies
in natural resources and precious metals-related industries often have limited
pricing power over supplies or the products they sell, which can affect such
companies’ profitability, and they are often capital-intensive and use
significant leverage. The securities of companies in natural resources
and
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precious
metals-related industries may experience more price volatility than securities
of companies in other industries, particularly those companies that have a high
percentage of debt relative to equity in their capital structures. In addition,
companies in natural resources and precious metals-related industries may be
subject to the risks generally associated with extraction of natural resource
and precious metals, such as the risks of mining and oil drilling, and the risks
of the hazards associated with natural resources, such as natural or man-made
disasters, fire, explosion, drought, liability for environmental damage claims,
and increased regulatory and environmental costs, including mandated
expenditures for safety and pollution control. Prices of precious metals and
precious metal related securities have historically been volatile due to various
economic, financial, social and political factors and may adversely affect the
financial condition of companies involved with precious metals. Actions to
address climate change could result in new laws and regulations to control or
restrict emissions of greenhouse gases, including taxes or other charges, which
could adversely affect the performance of companies in natural resources and
precious metals-related industries. A number of political leaders have pledged
to restrict greenhouse gas emissions, ban hydraulic fracturing of oil and
natural gas wells and ban new leases for production of oil and natural gas on
federal lands. Any such bans could result in material economic harm to those
companies, and in turn, a fund.
Other investment companies, including money market
funds and ETFs | Investments in the securities of other investment
companies, including money market funds and exchange-traded funds (“ETFs”)
(which may, in turn invest in equities, bonds, and other financial vehicles),
may involve duplication of advisory fees and certain other expenses. By
investing in another investment company, a fund becomes a shareholder of that
investment company. As a result, fund shareholders indirectly bear the fund’s
proportionate share of the fees and expenses paid by the other investment
company, in addition to the fees and expenses fund shareholders indirectly bear
in connection with the fund’s own operations. Investments in other investment
companies will subject a fund to the risks of the types of investments in which
the investment companies invest including, for certain ETF investments, natural
resources and precious metals companies and direct investments in gold and
silver.
As
a shareholder, a fund must rely on the other investment company to achieve its
investment objective. If the other investment company fails to achieve its
investment objective, the value of the fund’s investment will typically decline,
adversely affecting the fund’s performance. In addition, because ETFs are listed
on national stock exchanges and are traded like stocks listed on an exchange,
ETF shares may potentially trade at a discount or a premium. Investments in ETFs
are also subject to brokerage and other trading costs, which could result in
greater expenses to a fund. Finally, because the value of ETF shares depends on
the demand in the market, the portfolio manager may not be able to liquidate a
fund’s holdings of ETF shares at the most optimal time, adversely affecting the
fund’s performance. An ETF that tracks an index may not precisely replicate the
returns of its benchmark index. A passively managed ETF may not be permitted to
sell poorly performing stocks that are included in its index.
Portfolio turnover | A fund may engage in more
active and frequent trading of portfolio securities to a greater extent than
certain other mutual funds with similar investment objectives. A fund’s turnover
rate may vary greatly from year to year or during periods within a year. A high
rate of portfolio turnover may lead to greater transaction costs, result in
adverse tax consequences to investors (from increased recognition of net capital
gains, which are taxable to shareholders when distributed to them) and adversely
affect performance.
Prepayment and extension | Prepayment and
extension risk is the risk that a bond or other fixed-income security or
investment might, in the case of prepayment risk, be called or otherwise
converted, prepaid or redeemed before maturity and, in the case of extension
risk, might not be prepaid as expected. When interest rates fall, borrowers will
generally repay the loans that underlie certain debt securities, especially
mortgage- related and other types of asset backed securities, more quickly than
expected, causing the issuer of the security to repay the principal or otherwise
call, convert or redeem the security prior to the security’s expected maturity
date. If this occurs, no additional interest will be paid on the investment, and
a fund may need to reinvest the proceeds at a lower interest rate, reducing its
income, and may not benefit from an increase in value that may result from
declining interest rates. Securities subject to prepayment risk generally offer
less potential for gains when prevailing interest rates fall. If a fund buys
those securities at a premium, accelerated prepayments on those securities could
cause a fund to lose a portion of its principal investment. Any of these may
result in a reduced yield to a fund. The impact of prepayments on the price of a
security may be difficult to predict and may increase the security’s price
volatility. The rate of prepayments tends to increase as interest rates fall,
which could cause the average maturity of the portfolio to shorten. Prepayments
could also create capital gains tax liability in some instances. Conversely,
extension risk is the risk that, as a result of higher interest rates or other
factors, borrowers decrease prepayments. This may result in the extension of a
security’s effective maturity, increase the risk of default or delayed payment,
heighten interest rate risk and increase the potential for a decline in an
investment’s price. A rise in interest rates or lack of refinancing
opportunities can cause a fund’s average maturity to lengthen unexpectedly. This
would increase a fund’s sensitivity to rising rates and its potential for price
declines. In addition, as a consequence of a decrease in prepayments, the amount
of principal available to a fund for investment would be reduced. If a fund’s
investments are locked in at a lower interest rate for a longer period of time,
a fund may be unable to capitalize on securities with higher interest rates or
wider spreads. Extensions of obligations could cause a fund to exhibit
additional volatility and hold securities paying lower-than-market rates of
interest, which could hurt a fund’s performance.
Quantitative strategy risk | The success of a
fund’s investment strategy may depend in part on the effectiveness of a
subadviser’s quantitative tools for screening securities. Securities selected
using quantitative analysis can react differently to issuer, political, market,
and economic developments than the market as a whole or securities selected
using only fundamental analysis, which could adversely affect their value. A
subadviser’s quantitative tools may use factors that may not be predictive of a
security’s value, and any changes over time in the factors that affect a
security’s value may not be reflected in the quantitative model. The
quantitative tools may not react as expected to market events, resulting in
losses for a fund. Data for some companies, particularly non‑U.S. companies, may
be less available and/or less current than data for other companies. There may
also be errors in the computer code for the quantitative model or in the model
itself, or issues relating to the computer systems used to screen securities. A
subadviser’s stock selection can be
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adversely
affected if it relies on insufficient, erroneous or outdated data or flawed
models or computer systems. Additionally, a previously successful strategy may
become outdated or inaccurate, which may not be identified by a subadviser and
therefore may also result in losses.
Redemptions | A fund may experience periods of
heavy redemptions that could cause a fund to sell assets at inopportune times or
at a loss or depressed value. Redemption risk is greater to the extent that one
or more investors or intermediaries control a large percentage of investments in
a fund, have short investment horizons, or have unpredictable cash flow needs.
The risk of loss is also greater if redemption requests are frequent, occur in
times of overall market turmoil or declining prices for the securities sold, or
when the securities a fund wishes to sell are illiquid. A general rise in
interest rates has the potential to cause investors to move out of fixed income
securities on a large scale, which may increase redemptions from mutual funds
that hold large amounts of fixed income securities. This, coupled with a
reduction in the ability or willingness of dealers and other institutional
investors to buy or hold fixed income securities, may result in decreased
liquidity and increased volatility in the fixed income markets, and heightened
redemption risk. Heavy redemptions, whether by a few large investors or many
smaller investors, could hurt a fund’s performance.
Restricted Securities | Securities not
registered in the U.S. under the Securities Act of 1933, as amended (the
“Securities Act”), or in non-U.S. markets pursuant to similar regulations,
including “Section 4(a)(2)” securities and “Rule 144A” securities, are
restricted as to their resale. Such securities may not be listed on an exchange
and may have no active trading market. Before they are registered, such
securities may be sold only in a privately negotiated transaction or pursuant to
an exemption from registration. As a result of the absence of a public trading
market, the prices of these securities may be more difficult to determine than
publicly traded securities and these securities may involve heightened risk as
compared to investments in securities of publicly traded companies. They also
may be more difficult to purchase or sell at an advantageous time or price
because such securities may not be readily marketable in broad public markets,
or may have to be held for a certain time period before they can be resold. The
fund may not be able to sell a restricted security when the subadviser considers
it desirable to do so and/or may have to sell the security at a lower price than
the fund believes is its fair market value. In addition, transaction costs may
be higher for restricted securities and the fund may receive only limited
information regarding the issuer of a restricted security, so it may be less
able to anticipate a loss. Also, if a fund’s investment adviser or subadviser
receives material non-public information about the issuer, a fund may, as a
result, be legally prohibited from selling the securities. The fund may have to
bear the expense of registering restricted securities for resale and the risk of
substantial delays in effecting the registration. If, during such a delay,
adverse market conditions were to develop, the fund might obtain a less
favorable price than prevailed at the time it decided to seek registration of
the security. Restricted securities may be difficult to value because market
quotations may not be readily available, the securities may have significant
volatility, and due to the lack of publicly available information. A restricted
security that was liquid at the time of purchase may subsequently become
illiquid.
Rule
144A is designed to facilitate efficient trading among institutional investors
by permitting the sale of certain unregistered securities to qualified
institutional buyers. To the extent restricted securities held by a fund qualify
under Rule 144A and an institutional market develops for those securities, the
fund likely will be able to dispose of the securities without registering them.
To the extent that institutional buyers become, for a time, uninterested in
purchasing these securities, investing in Rule 144A securities could increase
the level of a fund’s illiquidity. Nevertheless, the adviser or subadviser may
determine that certain securities qualified for trading under Rule 144A are in
fact liquid.
Sectors | A fund may hold a significant amount
of investments in issuers conducting business in a related group of industries
within the same economic sector, which may be similarly affected by particular
economic or market events. To the extent a fund has substantial holdings within
a particular sector, the risks to a fund associated with that sector increase
and a fund may perform poorly during a downturn in one or more of the industries
within that sector. In addition, when a fund focuses its investments in certain
sectors of the economy, its performance could fluctuate more widely than if a
fund invested more evenly across sectors. Individual sectors may be more
volatile, and may perform differently, than the broader market. As a fund’s
portfolio changes over time, a fund’s exposure to a particular sector may become
higher or lower.
Financials
sector | Financial services companies are subject to extensive governmental
regulation, which may limit both the amounts and types of loans and other
financial commitments they can make, the interest rates and fees they can
charge, the scope of their activities, the prices they can charge and the amount
of capital they must maintain. Profitability is largely dependent on the
availability and cost of capital funds and can fluctuate significantly when
interest rates change or due to increased competition. In addition,
deterioration of the credit markets generally may cause an adverse impact in a
broad range of markets, including U.S. and international credit and interbank
money markets generally, thereby affecting a wide range of financial
institutions and markets. Certain events in the financial sector may cause an
unusually high degree of volatility in the financial markets, both domestic and
foreign, and cause certain financial services companies to incur large losses.
Securities of financial services companies may experience a dramatic decline in
value when such companies experience substantial declines in the valuations of
their assets, take action to raise capital (such as the issuance of debt or
equity securities), or cease operations. Credit losses resulting from financial
difficulties of borrowers and financial losses associated with investment
activities can negatively impact the sector. Insurance companies may be subject
to severe price competition. Adverse economic, business or political
developments could adversely affect financial institutions engaged in mortgage
finance or other lending or investing activities directly or indirectly
connected to the value of real estate.
Health
care sector | The health care sector may be affected by government regulations
and government health care programs, restrictions on government reimbursement
for medical expenses, increases or decreases in the cost of medical products and
services and product liability claims, among other factors. Many health care
companies are (1) heavily dependent on patent protection and intellectual
property rights, such that the expiration of a patent or other impairment of
intellectual property rights may adversely affect their profitability, (2)
subject to extensive litigation based on product liability and similar claims,
and (3) subject to competitive forces that may make it difficult to raise prices
and may
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rjinvestmentmanagement.com | 125 |
Carillon
Mutual Funds
result
in price discounting. Health care companies may also be thinly capitalized and
susceptible to product obsolescence. Many health care products and services may
be subject to regulatory approvals. The process of obtaining such approvals may
be long and costly, and delays in or failure to receive such approvals may
negatively impact the business of such companies. Additional or more stringent
laws and regulations enacted in the future could have a material adverse effect
on such companies in the health care sector. Issuers in the health care sector
include issuers having their principal activities in the biotechnology industry
or in medical laboratories and research, which pose additional risks. A
biotechnology company’s valuation can often be based largely on the potential or
actual performance of a limited number of products and, accordingly, can be
significantly affected if one or more of its products becomes obsolete or proves
unsafe, ineffective or unprofitable. Many biotechnology companies invest heavily
in research and development, and their products or services may not prove
commercially successful or may become obsolete quickly due to technological
change. Biotechnology companies can also be significantly affected by
technological change and obsolescence, product liability lawsuits and
consequential high insurance costs. Biotechnology companies are subject to
regulation by, and the restrictions of, the Food and Drug Administration, the
Environmental Protection Agency, state and local governments, and foreign
regulatory authorities. A biotechnology company may be unable to raise prices on
its products or services to cover its development and regulatory costs because
of managed care pressure or price controls. Biotechnology stocks, especially
those issued by smaller, less-seasoned companies, can be more volatile than the
overall market.
Industrials
sector | Companies in the industrials sector may be adversely affected by
general economic trends, including employment, economic growth, and interest
rates, changes in consumer sentiment and spending, commodity prices, which may
be influenced or characterized by unpredictable factors, legislation, government
regulation and spending, import controls, and worldwide competition. In
addition, companies in the industrials sector may be adversely affected by
liability for environmental damages, product liability claims, mandated
expenditures for safety and pollution control, and exchange rates. These
companies are affected by supply and demand for industrial sector products in
general. The products of companies in the industrials sector also may face
product obsolescence due to rapid technological developments and frequent new
product introduction. The industrials sector includes companies engaged in the
construction, engineering, machinery, energy services, transportation,
professional services, and aerospace and defense industries.
Information
technology sector | The information technology sector includes companies engaged
in internet software and services, technology hardware and storage peripherals,
electronic equipment, instruments and components, and semiconductors and
semiconductor equipment. Information technology companies face intense
competition, both domestically and internationally, which may have an adverse
effect on profit margins. Information technology companies may have limited
product lines, markets, financial resources or personnel. These companies may be
smaller or newer and may have limited product lines, markets, financial
resources or personnel. The market prices of information technology-related
securities tend to exhibit a greater degree of interest rate risk and market
risk and may experience sharper price fluctuations than other types of
securities. These securities may fall in and out of favor with investors
rapidly, which may cause sudden selling and dramatically lower market prices.
The products of information technology companies may face rapid product
obsolescence due to technological developments and frequent new product
introduction, unpredictable changes in growth rates and competition for the
services of qualified personnel. Failure to introduce new products, develop and
maintain a loyal customer base or achieve general market acceptance for their
products could have a material adverse effect on a company’s business. Companies
in the information technology sector also may be subject to increased government
scrutiny or adverse government regulatory action. Additionally, companies in the
information technology sector are heavily dependent on intellectual property and
the loss of patent, copyright and trademark protections may adversely affect the
profitability of these companies.
Securities lending | A fund may lend its portfolio
securities to brokers, dealers and financial institutions to seek income.
Borrowers of a fund’s securities typically provide collateral in the form of
cash that is reinvested in securities. A fund will be responsible for the risks
associated with the investment of cash collateral. A fund may lose money on its
investment of cash collateral or may fail to earn sufficient income on its
investment to meet obligations to the borrower. There is a risk that a borrower
may default on its obligations to return loaned securities; however, a fund’s
securities lending agent may indemnify the fund against that risk. There is a
risk that the assets of a fund’s securities lending agent may be insufficient to
satisfy any contractual indemnification requirements to the fund. In addition,
delays may occur in the recovery of securities from borrowers, which could
interfere with a fund’s ability to vote proxies or to settle transactions, and
there is the risk of possible loss of rights in the collateral should the
borrower fail financially. In any case in which the loaned securities are not
returned to a fund before an ex‑dividend date, the payment in lieu of the
dividend that the fund receives from the securities’ borrower would not be
treated as a dividend for federal income tax purposes and thus would not qualify
for treatment as “qualified dividend income.”
Short sales | A short sale creates the risk of
a loss if the price of the underlying security increases in value between the
date of the short sale and the date on which an offsetting position is
purchased, thus increasing the cost to a fund of buying those securities to
cover the short position. The potential for greater losses may be incurred due
to general market forces, such as a lack of securities available for short
sellers to borrow for delivery, or increases in the price of a security sold
short. A fund may lose more money than the actual cost of a short sale
investment. Also, there is the risk that the third party to the short sale may
fail to honor its contract terms, causing a loss to a fund.
Small‑cap companies | Investments in small‑cap
companies generally involve greater risks than investing in large-capitalization
companies. Companies with smaller market capitalizations generally have lower
volume of shares traded daily, less liquid stock and more volatile stock prices.
Companies with smaller market capitalizations also tend to have a limited
product or service base and limited access to capital. Newer companies with
unproven business strategies also tend to be smaller companies. The above
factors increase risks and make these companies more likely to fail than
companies with larger market capitalizations, and could increase the volatility
of a fund’s portfolio and performance. Shareholders of a fund that invests in
small‑cap companies
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126 | rjinvestmentmanagement.com |
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Carillon
Mutual Funds
should
expect that the value of the fund’s shares will be more volatile than a fund
that invests exclusively in mid‑cap or large‑cap companies. Generally, the
smaller the company size, the greater these risks.
Sovereign and quasi-sovereign debt | An
investment in sovereign and quasi-sovereign debt obligations involves special
risks not present in corporate debt obligations. Sovereign and quasi-sovereign
debt securities are issued or guaranteed by a sovereign government or entity
affiliated with or backed by a sovereign government. The issuer of the sovereign
or quasi-sovereign debt that controls the repayment of the debt may be unable or
unwilling to repay principal or interest when due, and a fund may have limited
recourse in the event of a default. In addition, these investments are subject
to risk of payment delays or defaults due to, among other things: (1) country
cash flow problems, (2) insufficient foreign currency reserves, (3) political
considerations, (4) large debt positions relative to the country’s economy, (5)
policies toward foreign lenders or investors, (6) the failure to implement
economic reforms required by the International Monetary Fund or other
multilateral agencies, or (7) an inability or unwillingness to repay debts. It
may be particularly difficult to enforce the rights of debt holders in emerging
markets. A governmental entity that defaults on an obligation may request
additional time in which to repay loans, may request to receive further loans,
or may seek to restructure its obligations to reduce interest rates or
outstanding principal. There is no legal process for collecting sovereign and
quasi-sovereign debt that a government does not pay nor are there bankruptcy
proceedings through which all or part of the sovereign debt that a governmental
entity has not repaid may be collected. Sovereign and quasi-sovereign debt risk
is increased for emerging markets issuers, which are among the largest debtors
to commercial banks and foreign governments. At times, certain emerging market
countries have declared moratoria on the payment of principal and interest on
external debt. Certain emerging market countries have experienced difficulty in
servicing their sovereign debt on a timely basis, which has led to defaults and
the restructuring of certain indebtedness.
U.S. Government securities and Government sponsored
enterprises | A security backed by the U.S. Treasury or the full faith
and credit of the United States is guaranteed by the applicable entity only as
to the stated interest rate and face value at maturity, not its current market
price. The market prices for such securities are not guaranteed and will
fluctuate with changes in interest rates and the credit rating of the U.S.
government. Investments in securities issued by Government sponsored
enterprises, such as Fannie Mae, Freddie Mac, FHLB, FFCB, Ginnie Mae and TVA,
are debt obligations issued by agencies and instrumentalities of the U.S.
Government. These obligations vary in the level of support they receive from the
U.S. Government. Some obligations of Government sponsored enterprises are
supported by the full faith and credit of the U.S. Treasury, while others may be
supported by the issuer’s ability to borrow from the U.S. Treasury, supported by
the discretionary authority of the U.S. Government to purchase the agency
obligations, or supported only by the credit of the issuer. The U.S. Government
may choose not to provide financial support to U.S. Government sponsored
agencies or instrumentalities if it is not legally obligated to do so. In such
circumstances, if the issuer defaulted, a fund may not be able to recover its
investment from the U.S. Government. Like all bonds, U.S. Government securities
and Government-sponsored enterprise bonds are also subject to interest rate
risk, credit risk and market risk. The rising U.S. national debt may lead to
adverse impacts on the value of U.S. Government securities due to potentially
higher costs for the U.S. Government to obtain new financing. The maximum
potential liabilities of the issuers of some securities issued by the U.S.
government or government-sponsored enterprises that are held by a fund may
greatly exceed their current resources, including any legal right to support
from the U.S. Treasury. It is possible that the U.S. government and
government-sponsored enterprises will not be able to meet their payment
obligations in the future, which would adversely affect the value of a fund’s
investments.
U.S. Treasury obligations | Securities issued or guaranteed
by the U.S. Treasury are backed by the “full faith and credit” of the United
States; however, the U.S. Government guarantees the securities only as to the
stated interest rate and face value at maturity, not their current market price,
and the market prices of such securities may fluctuate. The market value of U.S.
Treasury obligations may vary due to fluctuations in interest rates. In
addition, changes to the financial condition or credit rating of the U.S.
Government may cause the market value of a fund’s investments in obligations
issued by the U.S. Treasury to decline. Certain political events in the U.S.,
such as a prolonged government shutdown, the U.S. government’s inability at
times to agree on a long-term budget and deficit reduction plan, and threats not
to increase the federal government’s debt limit, which may result in a potential
default on the national debt, may also cause investors to lose confidence in the
U.S. Government and may cause the market value of U.S. Treasury obligations to
decline. Because U.S. Treasury securities trade actively outside the United
States, their prices may also rise and fall as changes in global economic
conditions affect the demand for these securities. The total public debt of the
U.S. as a percent of GDP has grown rapidly in recent years. Although high debt
levels do not necessarily indicate or cause economic problems, they have the
potential to create systemic risks if sound debt management practices are not
implemented.
Valuation | Securities held by a fund may be
priced by an independent pricing service and also may be priced using dealer
quotes or fair valuation methodologies in accordance with valuation procedures
adopted by the fund’s Board. The prices provided by the independent pricing
service or dealers or the fair valuations may be different from the prices used
by other mutual funds or from the prices at which securities are actually bought
and sold. This risk may be pronounced for investments that may be illiquid or
may become illiquid and for securities that trade in relatively thin markets
and/or markets that experience extreme volatility.
Value stocks | Investments in value stocks are
subject to the risk that their true worth may not be fully realized by the
market or that their prices may decline. This may result in the value stocks’
prices remaining undervalued for extended periods of time. A fund’s performance
also may be affected adversely if value stocks remain unpopular with or lose
favor among investors. If a value investment style shifts out of favor based on
market conditions and investor sentiment, a fund could underperform funds that
use a non-value approach to investing or have a broader investment style.
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rjinvestmentmanagement.com | 127 |
Management
of Funds
Investment
Adviser
Carillon
Series Trust (the “Trust” or the “Carillon Family of Funds”) is a Delaware
statutory trust, and is registered under the Investment Company Act of 1940, as
amended, as an open-end diversified management investment company. The Trust
offers shares in separate series (each a “fund” and collectively the “funds”),
each of which is advised by Carillon Tower Advisers, Inc. (“Carillon” or
“Manager”). On September 30, 2022, Carillon began also doing business as Raymond
James Investment Management. This did not involve any change in Carillon’s
structure, ownership, or control.
Carillon,
located at 880 Carillon Parkway, St. Petersburg, Florida 33716, serves as
investment adviser and administrator for the funds. Carillon manages, supervises
and conducts the business and administrative affairs of the funds. Carillon is a
wholly owned subsidiary of Raymond James Financial, Inc. (“RJF”) which, together
with its subsidiaries, provides a wide range of financial services to retail and
institutional clients. As of December 31, 2023, Carillon and its investment
management affiliates collectively had approximately $102.55 billion in
assets under management.
For
the Carillon ClariVest Capital Appreciation Fund, Carillon ClariVest
International Stock Fund, Carillon Eagle Growth & Income Fund, Carillon
Eagle Mid Cap Growth Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout
Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund,
Carillon Reams Core Plus Bond Fund and Carillon Reams Unconstrained Bond Fund,
the basis for the Board’s approval of each Investment Advisory Agreement with
Carillon is included in the annual report for the 12 month period ended October
31, 2023. For the Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell
Small Cap Growth Fund, Carillon Chartwell Small Cap Value Fund, Carillon
Chartwell Real Income Fund and Carillon Chartwell Short Duration High Yield
Fund, the basis for the Board’s approval of each Investment Advisory Agreement
with Carillon is included in the annual report for the 12 month period
ended December 31, 2023. The table below contains the effective investment
advisory fee rate for the last fiscal year for each fund as a percentage of each
fund’s average daily net assets, which takes into account breakpoints, as
applicable. For funds that have breakpoints in their fee rate, the advisory fee
rate may decline as assets increase.
|
|
|
|
|
| |
|
|
Fee Rates Charged |
Fund |
|
Contractual Rate |
|
Waivers |
|
Aggregate Rate |
Carillon Chartwell Mid Cap Value
Fund |
|
0.65% |
|
-0.59% |
|
0.06% |
Carillon Chartwell Small Cap Growth
Fund |
|
0.75% |
|
-0.75% |
|
0.00% |
Carillon Chartwell Small Cap Value
Fund |
|
0.80% |
|
-0.21% |
|
0.59% |
Carillon ClariVest Capital Appreciation
Fund |
|
0.60% |
|
-0.19% |
|
0.41% |
Carillon ClariVest International Stock
Fund |
|
0.70% |
|
-0.08% |
|
0.62% |
Carillon Eagle Growth & Income
Fund |
|
0.45% |
|
0.00% |
|
0.45% |
Carillon Eagle Mid Cap Growth Fund |
|
0.51% |
|
0.00% |
|
0.51% |
Carillon Eagle Small Cap Growth Fund |
|
0.59% |
|
0.00% |
|
0.59% |
Carillon Scout Mid Cap Fund |
|
0.73% |
|
0.00% |
|
0.73% |
Carillon Scout Small Cap Fund |
|
0.60% |
|
-0.01% |
|
0.59% |
Carillon Chartwell Real Income Fund |
|
0.40% |
|
-0.09% |
|
0.31% |
Carillon Chartwell Short Duration High
Yield Fund |
|
0.30% |
|
-0.11% |
|
0.19% |
Carillon Reams Core Bond Fund |
|
0.40% |
|
-0.30% |
|
0.10% |
Carillon Reams Core Plus Bond Fund |
|
0.40% |
|
-0.24% |
|
0.16% |
Carillon Reams Unconstrained Bond
Fund |
|
0.40% |
|
-0.36% |
|
0.24% |
Each
fund has entered into an Administration Agreement with Carillon under which each
fund pays Carillon for various administrative services at a rate of 0.10% of the
average daily net assets for all share classes.
Carillon
is registered as an investment adviser under the Investment Advisers Act of
1940, as amended. On behalf of each fund, either an exemption from regulation as
a commodity pool operator under the Commodity Exchange Act has been claimed with
the National Futures Association or registration is not applicable with respect
to the fund, and Carillon is exempt from registration as a commodity trading
adviser under Commodity Futures Trading Commission Regulation 4.14(a)(8) with
respect to the fund.
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128 | rjinvestmentmanagement.com |
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|
Management
of Funds
As
a fund’s asset levels change, its fees and expenses may differ from those
reflected in the fund’s fee tables. For example, as asset levels decline,
expense ratios may increase. Carillon has contractually agreed to waive its
investment advisory fee and/or reimburse certain expenses of a fund to the
extent that annual operating expenses of each class exceed a percentage of that
class’ average daily net assets through April 30, 2025 as follows:
|
|
|
|
|
|
|
| |
Contractual Expense
Limitations |
|
|
|
| |
|
|
Class A |
|
Class C |
|
Class I |
|
Class R‑6 |
|
|
|
| |
Carillon Chartwell Mid Cap Value Fund |
|
1.20% |
|
1.95% |
|
0.90% |
|
0.80% |
|
|
|
| |
Carillon Chartwell Small Cap Growth
Fund |
|
1.35% |
|
2.10% |
|
1.05% |
|
0.95% |
|
|
|
| |
Carillon Chartwell Small Cap Value Fund |
|
1.35% |
|
2.10% |
|
1.05% |
|
0.95% |
|
|
|
| |
Carillon ClariVest Capital Appreciation
Fund |
|
1.00% |
|
1.75% |
|
0.70% |
|
0.60% |
|
|
|
| |
Carillon ClariVest International Stock
Fund |
|
1.25% |
|
2.00% |
|
0.95% |
|
0.85% |
|
|
|
| |
Carillon Eagle Growth & Income
Fund |
|
1.25% |
|
2.00% |
|
0.95% |
|
0.85% |
|
|
|
| |
Carillon Eagle Mid Cap Growth Fund |
|
1.20% |
|
1.95% |
|
0.90% |
|
0.80% |
|
|
|
| |
Carillon Eagle Small Cap Growth Fund |
|
1.25% |
|
2.00% |
|
0.95% |
|
0.85% |
|
|
|
| |
Carillon Scout Mid Cap Fund |
|
1.25% |
|
2.00% |
|
0.95% |
|
0.85% |
|
|
|
| |
Carillon Scout Small Cap Fund |
|
1.25% |
|
2.00% |
|
0.95% |
|
0.85% |
|
|
|
| |
Carillon Chartwell Real Income Fund |
|
0.94% |
|
1.69% |
|
0.64% |
|
0.54% |
|
|
|
| |
Carillon Chartwell Short Duration High
Yield Fund |
|
0.79% |
|
1.54% |
|
0.49% |
|
0.39% |
|
|
|
| |
Carillon Reams Core Bond Fund |
|
0.75% |
|
1.50% |
|
0.45% |
|
0.35% |
|
|
|
| |
Carillon Reams Core Plus Bond Fund |
|
0.80% |
|
1.55% |
|
0.50% |
|
0.40% |
|
|
|
| |
Carillon Reams Unconstrained Bond Fund |
|
0.90% |
|
1.65% |
|
0.60% |
|
0.50% |
For
each fund, the expense limitation excludes interest, taxes, brokerage
commissions, costs relating to investments in other investment companies
(acquired fund fees and expenses), and extraordinary expenses. For Carillon
ClariVest Capital Appreciation Fund, Carillon ClariVest International Stock
Fund, Carillon Eagle Growth & Income Fund, Carillon Eagle Mid Cap Growth
Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout Mid Cap Fund,
Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon Reams
Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund, the expense
limitation also excludes dividends. For Carillon Chartwell Mid Cap Value Fund,
Carillon Chartwell Small Cap Growth Fund, Carillon Chartwell Small Cap Value
Fund, Carillon Chartwell Real Income Fund, Carillon Chartwell Short Duration
High Yield Fund, Carillon Reams Core Bond Fund, Carillon Reams Core Plus Bond
Fund, and Carillon Reams Unconstrained Bond Fund, the expense limitation also
excludes short sale dividend and interest expenses. For Carillon Chartwell Mid
Cap Value Fund, Carillon Chartwell Small Cap Growth Fund, Carillon Chartwell
Small Cap Value Fund, Carillon Chartwell Real Income Fund, and Carillon
Chartwell Short Duration High Yield Fund, the expense limitation also excludes
expenses incurred in connection with any merger or reorganization.
The
contractual fee waivers can be changed only with the approval of a majority of
the Board. Any reimbursement of fund expenses or reduction in Carillon’s
investment advisory fees is subject to recoupment by the fund within the
following two fiscal years, if overall expenses fall below the lesser of its
then-current
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rjinvestmentmanagement.com | 129 |
Management
of Funds
expense
cap or the expense cap in effect at the time of the fee recoupment. For the
funds with respect to which Chartwell Investment Partners, LLC (“Chartwell”),
ClariVest Asset Management LLC (“ClariVest”) and Scout Investments, Inc.
(“Scout”) serve as subadviser, the amount of the subadvisory fee paid by
Carillon to Chartwell, ClariVest or Scout, as applicable, is reduced by the
amount of the fees waived and/or expenses reimbursed by Carillon and Carillon
provides to these subadvisers any recoupment that Carillon receives from the
funds.
Subadvisers
Carillon
has selected the following subadvisers to provide investment advice and
portfolio management services to the funds’ portfolios:
• |
|
Chartwell,
1205 Westlakes Drive, Suite 100, Berwyn, PA 19312 serves as the subadviser
to the Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap
Growth Fund, Carillon Chartwell Small Cap Value Fund, Carillon Chartwell
Real Income Fund and Carillon Chartwell Short Duration High Yield
Fund. |
• |
|
Eagle
Asset Management, Inc. (“Eagle”), 880 Carillon Parkway, St. Petersburg, FL
33716, serves as the subadviser to the Carillon Eagle Growth &
Income Fund, Carillon Eagle Mid Cap Growth Fund and Carillon Eagle Small
Cap Growth Fund. |
• |
|
ClariVest,
3611 Valley Centre Drive, Suite 100, San Diego, CA 92130, serves as the
subadviser to the Carillon ClariVest Capital Appreciation Fund and the
Carillon ClariVest International Stock Fund. |
• |
|
Scout,
Inc., 1201 Walnut Street, 21st Floor, Kansas City,
MO 64106, serves as the subadviser to the Carillon Scout Mid Cap Fund,
Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon
Reams Core Plus Bond Fund, and Carillon Reams Unconstrained Bond Fund.
Scout’s Reams Asset Management division, 111 Monument Circle,
Indianapolis, IN 46204, provides subadvisory services to the Carillon
Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon
Reams Unconstrained Bond Fund. |
For
the Carillon ClariVest Capital Appreciation Fund, Carillon ClariVest
International Stock Fund, Carillon Eagle Growth & Income Fund, Carillon
Eagle Mid Cap Growth Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout
Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund,
Carillon Reams Core Plus Bond Fund and Carillon Reams Unconstrained Bond Fund,
the basis for the Board’s approval of each Subadvisory Agreement is contained in
the annual report for the 12 month period ended October 31, 2023. For the
Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap Growth Fund,
Carillon Chartwell Small Cap Value Fund, Carillon Chartwell Real Income Fund and
Carillon Chartwell Short Duration High Yield Fund, the basis for the Board’s
approval of each Subadvisory Agreement is included in the annual report for the
12 month period ended December 31, 2023.
The
funds currently operate in a multi-manager structure pursuant to an exemptive
order issued by the Securities and Exchange Commission (“SEC”). The order
permits Carillon, subject to certain conditions, to enter into new or modified
subadvisory agreements with existing or new subadvisers without the approval of
fund shareholders, but subject to approval by the Board. Carillon has the
ultimate responsibility for overseeing the funds’ subadvisers and recommending
their hiring, termination and replacement, subject to oversight by the Board.
The order also grants Carillon and the funds relief with respect to the
disclosure of the advisory fees paid to individual subadvisers in various
documents filed with the SEC and provided to shareholders. Pursuant to this
relief, the funds may disclose the aggregate fees payable to Carillon and
wholly-owned subadvisers and the aggregate fees payable to unaffiliated
subadvisers and subadvisers affiliated with Carillon or RJF, other than
wholly-owned subadvisers.
If
a fund relies on the order to hire a new subadviser, the fund will provide
shareholders with certain information regarding the subadviser within 90 days of
hiring the new subadviser, as required by the order.
In
the future, Carillon may propose the addition of one or more additional
subadvisers, subject to approval by the Board and, if required by the 1940 Act,
or any applicable exemptive relief, fund shareholders. The Prospectus will be
supplemented if additional investment subadvisers are retained or the contract
with any existing subadviser is terminated.
Portfolio
Managers
The
following portfolio managers are responsible for the day‑to‑day management of
the investment portfolio:
• |
|
Carillon
Chartwell Mid Cap Value Fund and Carillon Chartwell Small Cap Value Fund –
David C. Dalrymple, CFA®, T. Ryan Harkins,
CFA®, and Reid T.
Halloran are jointly and primarily responsible for the day-to-day
management of the Carillon Chartwell Mid Cap Value Fund and Carillon
Chartwell Small Cap Value Fund. Effective March 31, 2025, Mr. Dalrymple
will retire as a portfolio manager of the fund. |
David
C. Dalrymple, CFA®, has
38 years of investment experience. Mr. Dalrymple has been with Chartwell
since its inception in 1997. He has served as Chartwell’s Managing Partner and
Senior Portfolio Manager since 1997. During the past twenty years,
Mr. Dalrymple has been the lead portfolio manager of the firm’s Small Cap
Value strategy serving institutional, high net worth, and mutual fund
subadvisory clients. Mr. Dalrymple is part of a dedicated
investment
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Management
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team
of four investment professionals. From 1991 to 1997, Mr. Dalrymple served
as Portfolio Manager at Delaware Investment Advisers, managing a small cap value
mutual fund, the Value Fund, and assisting in managing mutual funds and
institutional assets in small and mid-cap styles. Prior to joining Delaware
Investment Advisers, Mr. Dalrymple was an assistant portfolio manager at
Lord Abbett & Co. managing mid-cap value and small-cap growth products.
Mr. Dalrymple holds a Bachelor of Science degree in Business Management
from Clarkson University and an MBA from Cornell University’s Johnson School and
is a Chartered Financial Analyst.
T.
Ryan Harkins, CFA®, has
26 years of investment experience. Mr. Harkins is a Senior Portfolio
Manager and has been with Chartwell since 2007. Prior to joining Chartwell,
Mr. Harkins was a Portfolio Manager and Research Analyst at Credit Suisse
Asset Management where he co-managed the firm’s small cap value strategy. From
1997 to 2000, he was an Investment Banker at Morgan Keegan & Company
where he specialized in private placements for small public and private
companies. Mr. Harkins holds a Bachelor’s degree from Duke University, an
MBA from University of Pennsylvania’s Wharton School and is a Chartered
Financial Analyst.
Reid
T. Halloran has 18 years of investment experience. Mr. Halloran began
serving as Portfolio Manager on January 1, 2024 and has been with Chartwell
since 2010 as a Research Analyst. Prior to joining Chartwell in 2010, Reid
worked as an Investment Analyst at Aberdeen Asset Management in the North
American Equities division. Reid earned a Bachelor of Science degree in Business
Management from Babson College. He began his investment career in 2006.
• |
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Carillon
Chartwell Small Cap Growth Fund – Frank L. Sustersic, CFA® and Theresa H. Tran,
CFA® are jointly
and primarily responsible for the day‑to‑ day management of the Carillon
Chartwell Small Cap Growth Fund. |
Frank
L. Sustersic, CFA®, has
35 years of investment experience. Mr. Sustersic earned a Bachelor of
Science degree in Economics from The University of Pennsylvania and holds a
Chartered Financial Analyst designation. From 2014 to February 2016,
Mr. Sustersic worked as a Portfolio Manager at Lazard Asset Management.
Prior to that, he worked as a Portfolio Manager at Turner Investments from 1994
to March 2014. In addition, Mr. Sustersic worked as a Portfolio Manager at
First Fidelity Bank Corporation from 1989 to April 1994. Mr. Sustersic is a
member of the CFA®
Institute and the CFA®
Society of Philadelphia.
Theresa
H. Tran, CFA®, has 20
years of investment experience. Ms. Tran earned a Bachelor of Business
Administration degree from Temple University, Fox School of Business and holds a
Chartered Financial Analyst designation. From 2020 to June 2022, Ms. Tran
worked as an Equity Research Analyst at Voya Investment Management. Prior to
that, she worked as an Investment Analyst from 2017 to March 2020 at Chartwell.
In addition, Ms. Tran was previously employed at Merck & Co., Inc.
from 2016 – August 2017 where she served as Associate Director of Strategy and
Planning; American Century Investments from 2015 – May 2016 where she served as
an Investment Analyst; Turner Investments from 2007 – May 2014 where she served
as an Analyst; and Towers Watson from 2004 to June 2007 where she served as a
Health and Welfare Associate. Ms. Tran is a member of the CFA® Institute and the CFA® Society of
Philadelphia.
• |
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Carillon
ClariVest Capital Appreciation Fund – Ed Wagner, CFA®, Amanda Freeman,
CFA®, C. Frank
Feng, Ph.D., and Todd N. Wolter, CFA® are Portfolio Co-
Managers of the fund and are jointly and primarily responsible for the
day-to-day management of the fund. Mr. Wagner and Dr. Feng have been
Portfolio Co-Managers of the fund since 2013. Dr. Feng has served as a
portfolio manager at ClariVest since co-founding it in 2006. Mr. Wagner
joined ClariVest in 2007 as a portfolio manager. Prior to forming
ClariVest in 2006, Dr. Feng was a portfolio manager at Nicholas-Applegate
Capital Management. Prior to joining ClariVest in 2007, Mr. Wagner was a
business analyst at Advent Software. Mr. Wolter, Chief Investment
Officer – U.S. and Alternative Strategies for ClariVest,
provides strategic direction and oversight for the investment process used
for the fund and has been a Portfolio Co-Manager of the fund since
February 2019. Mr. Wolter has served as Portfolio Co-Manager at ClariVest
since co-founding the firm in 2006. Ms. Freeman joined ClariVest in 2017.
Prior to joining ClariVest in 2017, Ms. Freeman worked as a Development
Officer at the Marine Corps Scholarship Foundation and a Senior Consultant
at Booz Allen Hamilton. Ms. Freeman earned a Bachelor of Arts degree in
English from Ohio University; a Master of Business Administration from the
University of Phoenix; a Master in Public Administration from Harvard
Kennedy School; and a Master of Finance from the University of California,
San Diego. She began her investment career in
2017. |
• |
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Carillon
ClariVest International Stock Fund – David R. Vaughn, CFA®, Alex Turner, CFA®, and Gashi Zengeni,
CFA®, are Portfolio
Managers of the fund and are jointly and primarily responsible for the
day-to-day management of the fund – Mr. Vaughn since its
inception in 2013, Mr. Turner since 2015, and Ms. Zengeni since April
2021. Mr. Vaughn has served as Portfolio Manager at ClariVest since
co-founding it in 2006. Mr. Turner served as Assistant Portfolio Manager
of the fund from its inception until 2015. Prior to joining ClariVest in
2008, Mr. Turner served as a Quantitative Analytic Specialist at FactSet
Research Systems, Inc. Ms. Zengeni, CFA®, served as Assistant Portfolio
Manager of the fund from April 2020 - March 2021, and previously as an
Investment Analyst at ClariVest since 2015. |
• |
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Carillon
Eagle Growth & Income Fund – David Blount, CFA®, Brad Erwin, CFA®, and Jeffrey D. Bilsky
are Portfolio Managers of the fund and are jointly and primarily
responsible for the day-to-day management of the fund. Mr. Blount has
served as the fund’s Portfolio Manager since 2011. Mr. Erwin has served as
the fund’s Portfolio Manager since July 2019. Mr. Bilsky has served as the
fund’s Portfolio Manager since August 2023. Mr. Blount joined Eagle in
1993, was a Senior Research Analyst at Eagle from 1999 through 2008 and
has been a Portfolio Manager at Eagle since 2008. Mr. Erwin was previously
with Eagle Asset Management from 2000 to 2007 and rejoined the firm in
2015. Mr. Bilsky is a Portfolio Co-Manager at Chartwell Investment
Partners, LLC (“Chartwell”). He is |
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Management
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|
also an
employee of Eagle and serves as a Portfolio Manager of the fund in his
capacity as an employee of Eagle. Mr. Bilsky has 18 years of investment
experience. Mr. Bilsky has been with Chartwell since 2015 and with Eagle
since 2023. Prior to joining Chartwell, Mr. Bilsky was employed at Cruiser
Capital, a long-short hedge fund, where he served as a Portfolio Analyst.
From 2008 to 2011, he was a Vice President in Institutional Sales and
Trading at Hudson Securities. Prior to Hudson Securities, he spent two
years at Banc of America Securities as an Analyst in Institutional Sales
and Trading. Mr. Bilsky holds a Bachelor’s degree from University of
Pennsylvania and an MBA from University of Pennsylvania’s Wharton
School. |
• |
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Carillon
Eagle Mid Cap Growth Fund – Eric Mintz, CFA®, Dr. Christopher
Sassouni, D.M.D. and David Cavanaugh are Portfolio Managers of the fund
and are jointly and primarily responsible for the day-to-day management of
the fund – Mr. Mintz since 2011, Dr. Sassouni since 2020 and Mr. Cavanaugh
since June 2022. Previously, Mr. Mintz served as Assistant Portfolio
Manager since 2008 and Senior Research Analyst since 2005,
Dr. Sassouni served as Assistant Portfolio Manager of the fund and
Vice President of Eagle since 2006 and Senior Research Analyst since 2003
and Mr. Cavanaugh served as Senior Research Analyst of the fund since
2017. |
• |
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Carillon
Eagle Small Cap Growth Fund – Eric Mintz, CFA®, Dr. Christopher
Sassouni, D.M.D., and David Cavanaugh are Portfolio Managers of the fund
and are jointly and primarily responsible for the day-to-day management of
the fund. Mr. Mintz has been Portfolio Manager of the fund since 2011.
Previously, Mr. Mintz served as Assistant Portfolio Manager since 2008 and
Senior Research Analyst at Eagle since 2005. Dr. Sassouni has been
Portfolio Manager of the fund since 2020. Previously, Dr. Sassouni served
as Assistant Portfolio Manager since 2015, Vice President of Eagle since
2006 and Senior Research Analyst since 2003. Mr. Cavanaugh has been
Portfolio Manager of the fund since June 2022. Previously, Mr. Cavanaugh
served as Senior Research Analyst of the fund since
2017. |
• |
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Carillon
Scout Mid Cap Fund – Derek M. Smashey, CFA®, John A. Indellicate
II, CFA® and Jason
J. Votruba, CFA®,
are Portfolio Co‑Managers of the fund. Messrs. Smashey, Indellicate and
Votruba are jointly and primarily responsible for the day‑to‑day
management of the fund. Mr. Smashey served as Portfolio Co‑Manager of
the fund’s predecessor from its inception in 2006 to 2017. Messrs.
Indellicate and Votruba served as Portfolio Co‑Managers of the fund’s
predecessor from 2011 and 2013, respectively, to 2017. Mr. Smashey
joined Scout in 2006, following previous employment at Nations Media
Partners, Inc. from 2003-2006, where he served as an associate director,
and Sprint Corporation from 2000-2003 where he served as Internal
Consultant. Mr. Smashey earned his Bachelor of Science in Finance
from Northwest Missouri State University and his MBA from the University
of Kansas. Mr. Smashey is a CFA® charterholder and
a member of the CFA® Society Kansas City as
well as the CFA®
Institute. Mr. Indellicate joined Scout in 2004 and has since served
as a quantitative analyst and a securities analyst. He earned his
Bachelor of Arts in Economics from Harvard
University. Mr. Indellicate is a CFA® charterholder and
a member of the CFA® Society Kansas City as
well as the CFA®
Institute. Previously, Mr. Votruba served as a portfolio manager of
the Carillon Scout Small Cap Fund since he joined Scout in 2002. Prior to
joining Scout, Mr. Votruba provided investment advice at George K.
Baum & Company from 2000-2002 and Commerce Bank from 1998-2000.
Mr. Votruba earned his Bachelor of Science in Business Administration
from Kansas State University. He is a CFA® charterholder and
a member of the CFA® Society Kansas City as
well as the CFA®
Institute. |
• |
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Carillon
Scout Small Cap Fund – James R. McBride, CFA®, is the Lead Portfolio
Manager of the fund. Timothy L. Miller, CFA®, and Tim Burger,
CFA® are Portfolio
Co-Managers of the fund. Messrs. McBride, Miller and Burger are jointly
and primarily responsible for the day-to-day management of the fund.
Mr. McBride was Portfolio Co-Manager of the fund’s predecessor from
2010 through 2015 and served as Lead Portfolio Manager of the fund’s
predecessor from 2015 to 2017. Mr. Miller served as Portfolio Co-Manager
of the fund’s predecessor from 2013 to 2017. Mr. Burger served as a Senior
Investment Analyst for the fund from 2019 to April 2024. Mr. McBride
joined Scout in 2009. Prior to joining Scout, Mr. McBride co-founded and
served as Vice President/ portfolio manager of TrendStar Advisors, LLC
from 2003-2009. Mr. McBride was also previously employed by Kornitzer
Capital Management, Inc. as a Vice President and research analyst from
2000 until he left to co-found TrendStar Advisors, LLC in 2003. Prior to
joining Kornitzer Capital, Mr. McBride served in a number of increasingly
responsible positions with Hewlett-Packard and subsidiary companies of
Hewlett-Packard from 1989-2000. Mr. McBride earned a Bachelor of Science,
with honors, in Mechanical Engineering from Wichita State University and
an MBA in Finance from Indiana University. Mr. McBride is also a graduate
of the General Electric Manufacturing Management Program for Manufacturing
Engineers. He is a CFA® charterholder and a
member of the CFA®
Society Kansas City as well as the CFA® Institute. Previously,
Mr. Miller served as a senior investment analyst for Scout’s domestic
equity strategies since he joined Scout in 2012. Prior to joining Scout,
Mr. Miller served as a senior investment analyst for American Century
Investments from 2007-2012. Mr. Miller’s investment experience also
includes employment at Insight Capital Research & Management, C.E.
Unterberg Towbin, and Banc of America Securities. Mr. Miller earned his
MBA in Finance from Indiana University and his Bachelor of Arts in
Economics from UCLA. He is a CFA® charterholder and a
member of the CFA®
Society Kansas City as well as the CFA® Institute. Previously,
Mr. Burger served as a senior investment analyst for Scout’s Small Cap
Equity investment team from 2019 to 2024. Prior to joining Scout in 2019,
Mr. Burger served as an assistant portfolio manager at Waddell & Reed
with previous experience as a financial advisor for UBS. Mr. Burger earned
an MBA in Finance and Bachelor of Arts from The University of Kansas. He
is a CFA®
charterholder and a member of the CFA Society Kansas City, as well as the
CFA Institute. |
• |
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Carillon
Chartwell Real Income Fund – David C. Dalrymple, CFA®, T. Ryan Harkins,
CFA®, Andrew S.
Toburen, CFA®,
Thomas R. Coughlin, CFA®, CMT, Jeffrey D.
Bilsky, John M. Hopkins, CFA® , Christine F.
Williams, and Reid T. Halloran are jointly and primarily responsible for
the day-to-day management of the Carillon Chartwell Real Income Fund.
Effective March 31, 2025, Mr. Dalrymple will retire as a portfolio manager
of the fund. |
David
C. Dalrymple, CFA®, has
38 years of investment experience. Mr. Dalrymple has been with Chartwell
since its inception in 1997. He has served as Chartwell’s Managing Partner and
Senior Portfolio Manager since 1997. During the past twenty years,
Mr. Dalrymple has been the lead portfolio manager of the firm’s Small Cap
Value strategy serving institutional, high net worth, and mutual fund
subadvisory clients. Mr. Dalrymple is part of a dedicated investment team
of four investment professionals. From 1991 to 1997, Mr. Dalrymple served
as Portfolio Manager at Delaware Investment Advisers, managing a small cap value
mutual fund, the Value Fund, and assisting in managing mutual funds and
institutional assets in small and mid-cap styles. Prior to joining
Delaware
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Investment
Advisers, Mr. Dalrymple was an assistant portfolio manager at Lord
Abbett & Co. managing mid-cap value and small-cap growth products.
Mr. Dalrymple holds a Bachelor of Science degree in Business Management
from Clarkson University and an MBA from Cornell University’s Johnson School and
is a Chartered Financial Analyst.
T.
Ryan Harkins, CFA®, has
26 years of investment experience. Mr. Harkins is a Senior Portfolio
Manager and has been with Chartwell since 2007. Prior to joining Chartwell,
Mr. Harkins was a Portfolio Manager and Research Analyst at Credit Suisse
Asset Management where he co-managed the firm’s small cap value strategy. From
1997 to 2000, he was an Investment Banker at Morgan Keegan & Company
where he specialized in private placements for small public and private
companies. Mr. Harkins holds a Bachelor’s degree from Duke University, an
MBA from University of Pennsylvania’s Wharton School and is a Chartered
Financial Analyst.
Andrew
S. Toburen, CFA®, has 30
years of investment experience. Mr. Toburen is a Senior Portfolio Manager
and has been with Chartwell since 1999. He is responsible for overseeing all of
the high yield fixed income assets at Chartwell. From 1994 to 1997,
Mr. Toburen was part of a team managing over $3 billion in high yield
corporate bond assets at Nomura Corporate Research and Asset Management, Inc.
Mr. Toburen holds a Bachelor’s degree in Economics from Yale University and
an MBA from Cornell University’s Johnson School of Management and is a Chartered
Financial Analyst. Mr. Toburen is a member of the CFA® Institute and the CFA® Society of
Philadelphia.
Thomas
R. Coughlin, CFA®, CMT,
has 19 years of investment experience. Mr. Coughlin is a Portfolio Manager
and Senior Analyst and has been with Chartwell since 2008. Prior to joining
Chartwell, Tom was employed at Janney Montgomery Scott, LLC. He held multiple
analyst positions at Janney Montgomery Scott, LLC. Mr. Coughlin holds a
Bachelor’s degree from Swarthmore College and is a Chartered Financial Analyst
and a Chartered Market Technician.
Jeffrey
D. Bilsky, has 19 years of investment experience. Mr. Bilsky is a Portfolio
Co-Manager and has been with Chartwell since 2015. Prior to joining Chartwell,
Mr. Bilsky was employed at Cruiser Capital, a long-short hedge fund, where
he served as a Portfolio Analyst. From 2008 to 2011, he was a Vice President in
Institutional Sales and Trading at Hudson Securities. Prior to Hudson
Securities, he spent two years at Banc of America Securities as an Analyst in
Institutional Sales and Trading. Mr. Bilsky holds a Bachelor’s degree from
University of Pennsylvania and an MBA from University of Pennsylvania’s Wharton
School.
John
M. Hopkins, CFA®, has 33
years of investment experience. Mr. Hopkins is a Portfolio Manager and
Senior Analyst and has been with Chartwell since 2007. From May of 2004 to 2007,
Mr. Hopkins worked for Collateral Processing Group, LLC where he was a
Founder and Managing Principal. From 1999 to 2003 he worked for Sunrock Capital
Corporation where he was Chief Financial Officer. From 1997 to 1999, he worked
for Chase Securities, Inc. where he was a Senior High Yield Analyst.
Mr. Hopkins holds a Bachelor’s degree in both Finance and Economics, and a
Minor in Spanish, from Pennsylvania State University and is a Chartered
Financial Analyst. Mr. Hopkins is a member of the CFA® Institute and the CFA® Society of
Philadelphia.
Christine
F. Williams, has 36 years of investment experience. Ms. Williams is a
Managing Partner and Senior Portfolio Manager and has been with Chartwell since
its inception in 1997. She is responsible for overseeing all of the high grade
fixed income assets at Chartwell. From 1990 to 1997, Ms. Williams was an
Assistant Vice President in Fixed Income at Meridian Investment Company where
she was part of the fixed income team managing close to $2 billion in
assets. In addition to her tax exempt responsibilities, she managed the
Pennsylvania Municipal Mutual Fund and the General Market Personal Trust
Municipal Fund. She began her career at Merrill Lynch. Ms. Williams holds a
Bachelor’s degree in Economics from the University of Delaware and a Master’s
Degree in Finance from St. Joseph’s University. Ms. Williams is a member of
the CFA® Institute and
the CFA® Society of
Philadelphia.
Reid
T. Halloran has 18 years of investment experience. Mr. Halloran began
serving as Portfolio Manager on January 1, 2024 and has been with Chartwell
since 2010 as a Research Analyst. Prior to joining Chartwell in 2010, Reid
worked as an Investment Analyst at Aberdeen Asset Management in the North
American Equities division. Reid earned a Bachelor of Science degree in Business
Management from Babson College. He began his investment career in 2006.
• |
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Carillon
Chartwell Short Duration High Yield Fund – Andrew S. Toburen, CFA®, John M. Hopkins,
CFA®, and Christine
F. Williams are jointly and primarily responsible for the day-to-day
management of the Carillon Chartwell Short Duration High Yield
Fund. |
Andrew
S. Toburen, CFA®, has 30
years of investment experience. Mr. Toburen is a Senior Portfolio Manager
and has been with Chartwell since 1999. He is responsible for overseeing all of
the high yield fixed income assets at Chartwell. From 1994 to 1997,
Mr. Toburen was part of a team managing over $3 billion in high yield
corporate bond assets at Nomura Corporate Research and Asset Management, Inc.
Mr. Toburen holds a Bachelor’s degree in Economics from Yale University and
an MBA from Cornell University’s Johnson School of Management and is a Chartered
Financial Analyst. Mr. Toburen is a member of the CFA® Institute and the CFA® Society of
Philadelphia.
John
M. Hopkins, CFA®, has 33
years of investment experience. Mr. Hopkins is a Portfolio Manager and
Senior Analyst and has been with Chartwell since 2007. From May of 2004 to 2007,
Mr. Hopkins worked for Collateral Processing Group, LLC where he was a
Founder and Managing Principal. From 1999 to
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Management
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PROSPECTUS | 4.26.2024
2003
he worked for Sunrock Capital Corporation where he was Chief Financial Officer.
From 1997 to 1999, he worked for Chase Securities, Inc. where he was a Senior
High Yield Analyst. Mr. Hopkins holds a Bachelor’s degree in both Finance
and Economics, and a Minor in Spanish, from Pennsylvania State University and is
a Chartered Financial Analyst. Mr. Hopkins is a member of the CFA® Institute and the CFA® Society of
Philadelphia.
Christine
F. Williams, has 36 years of investment experience. Ms. Williams is a
Managing Partner and Senior Portfolio Manager and has been with Chartwell since
its inception in 1997. She is responsible for overseeing all of the high grade
fixed income assets at Chartwell. From 1990 to 1997, Ms. Williams was an
Assistant Vice President in Fixed Income at Meridian Investment Company where
she was part of the fixed income team managing close to $2 billion in
assets. In addition to her tax exempt responsibilities, she managed the
Pennsylvania Municipal Mutual Fund and the General Market Personal Trust
Municipal Fund. She began her career at Merrill Lynch. Ms. Williams holds a
Bachelor’s degree in Economics from the University of Delaware and a Master’s
Degree in Finance from St. Joseph’s University. Ms. Williams is a member of
the CFA® Institute and
the CFA® Society of
Philadelphia.
• |
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Carillon
Reams Core Bond Fund, Carillon Reams Core Plus Bond Fund, and Carillon
Reams Unconstrained Bond Fund – Mark M. Egan, CFA®, has served as the
Lead Portfolio Manager of each fund and Todd C. Thompson, CFA® and Clark W. Holland,
CFA®, have served
as Portfolio Co‑Managers of each fund since each fund’s inception in 2017.
Jason J. Hoyer, CFA®, has served as
Portfolio Co‑Manager of each fund since April 2018. Tilak “Dimitri” Silva,
CFA®, has served as
Portfolio Co-Manager of each fund since March 2021. Neil Aggarwal has
served as Portfolio Co-Manager of each fund since March 2023. Messrs.
Egan, Thompson, Holland, Hoyer, Silva and Aggarwal are jointly and
primarily responsible for the day‑to‑day management of each fund.
Mr. Egan served as the Lead Portfolio Manager of the Carillon Reams
Core Bond Fund’s predecessor and Mr. Thompson served as Portfolio
Co‑Manager of the Carillon Reams Core Bond Fund’s predecessor from its
inception in 2001 to 2017. Mr. Holland served as Portfolio Co‑Manager of
the Carillon Reams Core Bond Fund’s predecessor from 2014 to 2017.
Mr. Egan served as Lead Portfolio Manager of the Carillon Reams Core
Plus Bond Fund’s predecessor from its inception in 1996 to 2017. Messrs.
Thompson and Holland served as Portfolio Co‑Managers of the Carillon Reams
Core Plus Bond Fund’s predecessor from 2000, 2001, 2009 and 2014,
respectively, to 2017. Mr. Egan served as Lead Portfolio Manager of
the Carillon Reams Unconstrained Bond Fund’s predecessor and Mr. Thompson
served as Portfolio Co‑Manager of the Carillon Reams Unconstrained Bond
Fund’s predecessor from its inception in 2011 to 2017. Mr. Holland
served as Portfolio Co‑Manager of the Carillon Reams Unconstrained Bond
Fund’s predecessor from 2014 to 2017. |
Mr. Egan
joined Scout in 2010. He oversees the entire fixed income division of
Scout, Reams Asset Management, and retains oversight over all investment
decisions. Mr. Egan was a portfolio manager of Reams Asset Management
Company, LLC from 1994 until 2010 and was a portfolio manager of Reams Asset
Management Company, Inc. from 1990 until 1994. Mr. Egan was a
portfolio manager of National Investment Services until 1990. He is a
CFA® charterholder
and a member of the CFA®
Institute.
Mr. Thompson
joined Scout in 2010. He assumed the role of deputy chief investment
officer in 2023. Mr. Thompson was a portfolio manager at Reams from 2001 until
2010. He was a portfolio manager at Conseco Capital Management from 1999
until June 2001 and was a portfolio manager at the Ohio Public Employees
Retirement System from 1994 until 1999. Mr. Thompson is a CFA® charterholder and a
member of the CFA®
Institute.
Mr. Holland
joined Scout in 2010 and became a portfolio manager in 2014. He was a
portfolio analyst at Scout from 2010 until 2014 and at Reams from 2002 until
2010. Prior to joining the firm, Mr. Holland was a portfolio manager
and investment product specialist at Wells Fargo Investment Management
Group. He is a CFA® charterholder and a
member of the CFA®
Institute.
Mr. Hoyer
joined Scout in 2015 as a fixed income credit analyst and became a portfolio
manager in April 2018. Prior to joining Reams, the fixed income division of
Scout, in 2015, Mr. Hoyer was a senior credit analyst at 40 | 86 Advisors
and a director in the research department at Fiduciary Management
Associates. He is a CFA® charterholder and a
member of the CFA®
Institute.
Mr.
Silva joined Scout in March 2021 as a portfolio manager. Prior to joining the
firm, Mr. Silva was a portfolio manager at AllianceBerstein, L.P., since 2013
and lead portfolio manager since 2018. He is a CFA® charterholder and a member
of the CFA®
Institute.
Mr.
Aggarwal joined Scout in November 2022 as Head of Securitized Products and
became a portfolio manager in 2023. Prior to joining the firm, Mr. Aggarwal was
a portfolio manager at Verition Fund Management from 2021 to 2022 and was the
Deputy Chief Investment Officer and Head of Trading at Semper Capital Management
from 2017 to 2020.
Additional
information about portfolio manager compensation, other accounts managed by the
portfolio managers, and portfolio manager ownership of fund shares is found in
the Statement of Additional Information (“SAI”).
Prior
Performance of Similar Accounts for the Carillon Chartwell Real Income
Fund
Chartwell
has managed a proprietary separate account (“Account”) in the strategy of the
Real Income Fund since January 2, 2017 using substantially similar
investment objectives, policies and strategies as those of the Real Income Fund.
Carillon acquired Chartwell on May 31, 2022, in connection with
the
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acquisition
by RJF, Carillon’s parent company, of TriState Capital Holdings, Inc. and its
affiliated companies. The performance information has been provided by Chartwell
and includes a comparison of the Account’s returns to those of the Real Income
Fund’s benchmark index and another broad-based market index to which the Real
Income Fund’s returns are compared.
The
performance of the Account does not represent the historical performance of the
Real Income Fund. The other accounts in the Account are separate and distinct
from the Real Income Fund, and the performance of the Account should not be
considered indicative of the past or future performance of the Real Income Fund,
nor should it be considered a substitute for the Real Income Fund’s performance.
Results may differ because of, among other things, differences in trading
expenses, account expenses, including management fees, the size of positions
taken in relation to account size, the diversification of securities, the timing
of purchases and sales, and the availability of cash for new investments. In
addition, the accounts included in the Account are not registered mutual funds
and are not subject to the same types of expenses as the Real Income Fund, nor
have they been subject to certain investment limitations, diversification
requirements or other restrictions imposed by the Investment Company Act and the
Internal Revenue Code which, if applicable, may have adversely affected the
performance results of the other accounts, and thus of the Account.
Notwithstanding these differences, the accounts in the Account and the Real
Income Fund are substantially similar from an investment perspective. The
Account includes all accounts managed by Chartwell with substantially similar
investment objectives, policies, and strategies as those of the Real Income
Fund.
The
performance of the Account does not reflect the deduction of sales loads fees or
other direct or indirect expenses because there are no sales loads or other fees
or expenses associated with Chartwell’s services to the Account. The performance
of the Account has not been adjusted to reflect the expenses of the Real Income
Fund. The Real Income Fund’s total annual operating expenses, both before and
after fee waiver and/or expense reimbursement, are higher than the highest total
fees and expenses charged to the accounts in the Account. If the Real Income
Fund’s higher expenses were reflected for the accounts in the Account, the
Account performance presented would be lower. The Account’s rate of return
includes the reinvestment of all income.
The
Account’s performance is calculated using a methodology that incorporates the
time-weighted rate of return, which takes into account the timing of cash flows.
The calculation method for the Account’s return differs from the standardized
SEC method for calculating performance for registered investment companies and
may result in an average annual total return that may be different than that
derived from the SEC’s standard methodology. The SEC standardized total return
is calculated using a standard formula that uses the average annual total return
assuming reinvestment of dividends and distributions and deduction of sales
loads or charges.
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Since Inception (12/31/2016) |
|
|
|
|
|
|
|
|
| |
Chartwell Real Return Account (gross) |
|
4.59% |
|
-0.17% |
|
9.18% |
|
7.51% |
|
9.19% |
|
-5.40% |
|
5.88% |
|
5.12% |
|
4.27% |
|
|
|
|
|
|
|
|
| |
Bloomberg US TIPS Index |
|
3.01% |
|
-1.26% |
|
8.43% |
|
10.99% |
|
5.96% |
|
-11.85% |
|
3.90% |
|
3.15% |
|
2.49% |
|
| |
| |
rjinvestmentmanagement.com | 135 |
Your
Investment
Distributor
Carillon
Fund Distributors, Inc.®
(“Distributor”), a subsidiary of Eagle Asset Management, Inc., serves as the
distributor of the funds. The Distributor may compensate other broker-dealers to
promote sales of fund shares. The Distributor’s role is that of an underwriter
and it serves only as an agent for accepting shareholder instructions and does
not maintain brokerage accounts for any shareholders.
Rule
12b‑1 Distribution Plan
Each
fund has adopted a distribution plan for each share class under Rule 12b‑1. The
distribution plans allow a fund to pay distribution and service fees for the
sale of shares and for services provided to shareholders. Because these fees are
paid out of a fund’s assets on an ongoing basis, over time these fees will
increase the cost of your investment and may cost you more than paying other
types of sales charges. Under the funds’ distribution plans, each fund is
authorized to pay a maximum distribution and service fee of up to 0.35% of
average daily assets on Class A shares, except for the Capital Appreciation
Fund and the Growth & Income Fund which are authorized to pay a maximum
distribution and service fee of up to 0.50% of average daily assets on
Class A shares. Each fund’s Board of Trustees has approved a current fee of
0.25% on Class A shares. Also, under the fund’s distribution plans, each
fund is authorized to pay a maximum distribution and service fee of up to 1.00%
of average daily net assets on Class C shares. Each fund’s Board has
approved current fees of 1.00% on Class C shares.
The
funds currently do not incur any direct distribution expenses related to
Class I or Class R‑6 shares. However, Carillon or any third party may
make payments for the sale and distribution of Class I or Class R‑6
shares from its own resources.
Payments
to Financial Intermediaries
Carillon,
the Distributor or one or more of their corporate affiliates (“Affiliate” or
“Affiliates”) make cash payments or waive or reimburse costs to financial
intermediaries in connection with the promotion and sale of shares of the funds.
Carillon or the Distributor also make cash payments or waive or reimburse costs
to one or more of its Affiliates. Cash payments, waivers or reimbursements
include cash revenue sharing payments and other payments for certain
administrative services, transaction processing services and certain other
marketing support services. Carillon or its Affiliates make these payments from
their own resources, not out of fund assets (i.e., without additional cost to
the funds or their shareholders), and the Distributor generally makes such
payments from the retention of underwriting concessions or 12b‑1 fees. The
Board, Carillon or its Affiliates may terminate or suspend payments or waivers
or reimbursements of costs at any time. In this context, the term “financial
intermediaries” includes any broker, dealer, bank (including bank trust
departments), trust company, registered investment adviser, financial planner,
retirement plan administrator and any other financial intermediary having a
selling, administration, trust processing or similar agreement with Carillon,
the Distributor and/or an Affiliate.
Carillon
or its Affiliates make revenue sharing payments as incentives to certain
financial intermediaries to promote and sell shares of the funds. Revenue
sharing arrangements are not financed by the funds, and thus, do not result in
increased fund expenses. Carillon and its Affiliates make these payments out of
their own resources, including from the profits derived from management or other
fees received from the funds. The benefits that Carillon and its Affiliates
receive when these payments are made include, among other things, placing the
funds on the financial adviser’s fund sales system, possibly placing the funds
on the financial intermediary’s preferred or recommended fund list, and access
(in some cases on a preferential basis over other competitors) to individual
members of the financial intermediary’s sales force or to the financial
intermediary’s management. Revenue sharing payments are sometimes referred to as
“shelf space” payments because the payments compensate the financial
intermediary for including the funds in its fund sales system (on its “sales
shelf”). Carillon and its Affiliates compensate financial intermediaries
differently depending on the level and/or type of considerations provided by the
financial intermediary. The revenue sharing payments Carillon or its Affiliates
make may be calculated on the average daily net assets of the applicable funds
attributable to that particular financial intermediary (“Asset-Based Payments”).
Asset-Based Payments primarily create incentives to retain previously sold
shares of the funds in investor accounts. The revenue sharing payments Carillon
or its Affiliates make may be also calculated on sales of new shares in the
funds attributable to a particular financial intermediary (“Sales-Based
Payments”). Sales-Based Payments may create incentives for the financial
intermediary to, among other things, sell more shares of a particular fund or to
switch investments between funds frequently.
Carillon
or its Affiliates also make other payments to certain financial intermediaries
for processing certain transactions or account maintenance activities (such as
processing purchases, redemptions or exchanges, cash sweep payments, or
producing customer account statements) or for providing certain other marketing
support services (such as financial assistance for conferences, seminars or
sales or training programs at which Carillon’s or its Affiliates’ personnel may
make presentations on the funds to the financial intermediary’s sales force and
clients). Financial intermediaries may earn profits on these payments for these
services, since the amount of the payment may exceed the cost of providing the
service. Certain of these payments are subject to limitations under applicable
law. An Affiliate also makes payments to financial intermediaries for these
services, to the extent that these services replace services that would
otherwise be provided by the funds’ transfer agent or otherwise would be a
direct obligation of the funds. The funds, subject to limits authorized by the
Board, reimburse the Affiliate for these payments as transfer agent
out‑of‑pocket expenses.
|
| |
136 | rjinvestmentmanagement.com |
|
|
Your
Investment
Payments
from Carillon or its Affiliates to financial intermediaries may also include the
payment or reimbursement of all or a portion of “ticket charges.” Ticket charges
are fees charged to salespersons purchasing through a financial intermediary
firm in connection with mutual fund purchases, redemptions, or exchanges. The
payment or reimbursement of ticket charges creates an incentive for salespersons
of an intermediary to sell shares of the funds over shares of funds for which
there is lesser or no payment or reimbursement of any applicable ticket charge.
Payments made with respect to certain classes of shares may create an incentive
for an intermediary to promote or favor certain share classes of the
funds.
Carillon
and its Affiliates are motivated to make the payments described above since they
promote the sale of fund shares and the retention of those investments by
clients of financial intermediaries. To the extent financial intermediaries sell
more shares of the funds or retain shares of the funds in their clients’
accounts, Carillon and its Affiliates benefit from the incremental management
and other fees paid to Carillon and its Affiliates by the funds with respect to
those assets. The funds may reimburse Carillon for making payments to financial
intermediaries for certain sub-transfer agency and shareholder services, subject
to limits established by the Board of Trustees.
In
certain cases, these payments could be significant to the financial
intermediary. Your financial intermediary may charge you additional fees and/or
commissions other than those disclosed in this Prospectus. You can ask your
financial intermediary about any payments it receives from Carillon or its
Affiliates or the funds, as well as about fees and/or commissions it
charges.
The
funds do not pay any distribution, shareholder servicing, sub-transfer agency or
administrative fees to financial intermediaries on Class R-6 shares.
|
| |
| |
rjinvestmentmanagement.com | 137 |
Your
Investment
Your
Investment
Choosing
a Share Class
Each
fund offers Class A, Class C, Class I, and Class R‑6 shares.
Each class of shares represents an investment in the same portfolio of
securities, but each class has a different combination of purchase restrictions,
sales charges and ongoing fees allowing you to choose the class that best meets
your needs. Some factors you might consider when choosing a share class
include:
• |
|
the
length of time you expect to own the shares; |
• |
|
how
much you intend to invest; |
• |
|
total
expenses associated with owning shares of each
class; |
• |
|
whether
you qualify for any reduction or waiver of sales
charges; |
• |
|
whether
you plan to take any distributions in the near future;
and |
• |
|
the
availability of the share classes. |
You
should read this section carefully to determine which class of shares is best
for you and discuss your selection with your financial adviser. The following
sections explain the sales charges or other fees you may pay when investing in
each class.
Class A
Shares
You
may purchase Class A shares at the “offering price,” which is a price equal
to their NAV, plus a sales charge imposed at the time of purchase. Class A
shares currently are subject to ongoing distribution and service (Rule 12b‑1)
fees equal to 0.25% of their average daily net assets. If you choose to invest
in Class A shares, you will pay a sales charge at the time of each
purchase. The table below shows the charges both as a percentage of offering
price and as a percentage of the amount you invest. Because of rounding of the
calculation in determining the sales charges, you may pay more or less than what
is shown in the tables below. If you invest more, the sales charge will be
lower.
|
|
|
|
|
| |
| |
Sales Charge for Equity Funds
(Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap
Growth Fund, Carillon Chartwell Small Cap Value Fund, Carillon ClariVest
Capital Appreciation Fund, Carillon ClariVest International Stock Fund,
Carillon Eagle Growth & Income Fund, Carillon Eagle Mid Cap Growth
Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout Mid Cap Fund,
Carillon Scout Small Cap Fund): |
|
|
|
|
| |
Your Investment in Equity Funds |
|
Sales Charge as a percentage of Offering Price (a) |
|
Sales Charge as a percentage of Your Investment (a) |
|
Dealer Concession
as % of offering price (b) |
Less than $25,000 |
|
4.75% |
|
4.99% |
|
4.25% |
$25,000‑$49,999.99 |
|
4.25% |
|
4.44% |
|
3.75% |
$50,000‑$99,999.99 |
|
3.75% |
|
3.90% |
|
3.25% |
$100,000‑$249,999.99 |
|
3.25% |
|
3.36% |
|
2.75% |
|
|
| |
$250,000‑$499,999.99 |
|
2.50% |
|
2.56% |
|
2.00% |
$500,000‑$999,999.99 |
|
1.50% |
|
1.52% |
|
1.25% |
|
|
| |
$1,000,000 and over |
|
0.00% |
|
0.00% |
|
See “Sales Charge Waiver” section |
|
| |
138 | rjinvestmentmanagement.com |
|
|
Your
Investment
|
|
|
|
|
| |
| |
Sales Charge for Fixed Income
Funds (Carillon Chartwell Real Income Fund, Carillon Chartwell Short
Duration High Yield Fund, Carillon Reams Core Bond Fund, Carillon Reams
Core Plus Bond Fund, Carillon Reams Unconstrained Bond Fund): |
|
|
|
|
| |
Your Investment in fixed income
funds |
|
Sales Charge as a percentage of Offering Price (a) |
|
Sales Charge as a percentage of Your Investment (a) |
|
Dealer Concession
as % of offering price (b) |
Less than $25,000 |
|
3.75% |
|
3.99% |
|
3.25% |
$25,000‑$49,999.99 |
|
3.25% |
|
3.44% |
|
2.75% |
$50,000‑$99,999.99 |
|
2.75% |
|
2.90% |
|
2.25% |
$100,000‑$249,999.99 |
|
2.25% |
|
2.36% |
|
1.75% |
|
|
| |
$250,000‑$499,999.99 |
|
1.50% |
|
1.56% |
|
1.00% |
$500,000‑$999,999.99 |
|
0.50% |
|
0.52% |
|
0.25% |
|
|
| |
$1,000,000 and over |
|
0.00% |
|
0.00% |
|
See “Sales Charge Waiver” section |
(a) As a result of rounding, the actual sales charge
for a transaction may be higher or lower than the sales charges listed.
(b) During certain periods, the Distributor may
pay 100% of the sales charge to participating dealers. Otherwise, it will pay
the dealer concession shown above.
Former
Class Y shareholders whose Class Y shares were converted to Class A shares are
eligible to purchase additional Class A shares without a sales charge.
Class
C Shares
You
may purchase Class C shares at NAV with no initial sales charge. As a result,
the entire amount of your purchase is invested immediately. However, if you sell
the shares less than one year after purchase, you will pay a 1% CDSC at the time
of sale. Class C shares are subject to ongoing Rule 12b-1 fees of up to 1% of
their average daily net assets. Class C shares will automatically convert to
Class A Shares for all purchases that have surpassed their 8-year anniversary
date. Your financial intermediary may have a conversion policy that will
automatically convert your shares sooner than 8 years. With respect to Class C
shares, you should consult with your financial adviser as to the suitability of
such an investment for you.
Sales
Charge Reductions
To receive a reduction or waiver in your
Class A initial sales charge, you must advise your
financial adviser or the funds of your
eligibility at the time of purchase. If you or your financial adviser
does not let the funds know that you are eligible for a reduction, you may not
receive a sales charge discount to which you are otherwise entitled. In order to
determine your eligibility to receive a sales charge discount, it may be
necessary for you or your financial adviser to provide the funds with
information and records (including account statements) of all relevant accounts
invested in the funds. To have your Class A or Class C contingent
deferred sales charge waived, you or your financial adviser must let the funds
know at the time you redeem shares that you qualify for such a waiver.
The
availability of certain sales charge waivers and discounts will depend on
whether you purchase your shares directly from the fund or through a financial
intermediary. Intermediaries may have different policies and procedures
regarding the availability of front‑end sales load waivers or contingent
deferred (back‑end) sales load (“CDSC”) waivers, which are discussed below. In
all instances, it is the purchaser’s responsibility to notify the fund or the
purchaser’s financial intermediary at the time of purchase of any relationship
or other facts qualifying the purchaser for sales charge waivers or discounts.
For waivers and discounts not available through a particular intermediary,
shareholders will have to purchase fund shares directly from the fund or through
another intermediary to receive these waivers or discounts.
The
funds offer programs designed to reduce your Class A sales charges as
described in the preceding schedule. For purposes of calculating your sales
charge, you can combine purchases of Class A and Class C shares for
all mutual funds managed by the Manager in the account owner relationships
listed below.
• |
|
Accounts
owned by you, your spouse or minor children, including trust or other
fiduciary accounts in which you, your spouse or minor children are the
beneficiary. This includes sole proprietor business
accounts; |
• |
|
Accounts
opened under a single trust agreement – including those with multiple
beneficiaries; |
• |
|
Purchases
made by a qualified retirement or employee benefit plan of a single
employer; and |
• |
|
Purchases
made by a company, provided the company is not in existence solely for
purchasing investment company shares. |
|
| |
| |
rjinvestmentmanagement.com | 139 |
Your
Investment
Rights of accumulation | You may combine your
new purchase of Class A shares with the Class A and Class C
shares currently owned for the purpose of qualifying for the lower sales charge
rates that apply to larger purchases. The applicable sales charge for the new
purchase is based on the total of your current purchase and the value based on
the NAV at the close of business on the previous day of all other shares you
own. For example, if you previously purchased $20,000 of a mutual fund managed
by the Manager and made a subsequent investment of $10,000 in Class A
shares, a sales charge discount would be applied to the $10,000
investment.
Letter of intent | You may combine Class A
and Class C share purchases of any fund managed by the Manager over a
13‑month period and receive the same sales charge as if all shares had been
purchased at once by signing a Letter of Intent (“LOI”). You must inform your
financial adviser or the funds that you have an LOI each time you make an
investment. Shares purchased within 90 days of the date you sign the LOI may be
used as credit toward completion, but the reduced sales charge will only apply
to new purchases made on or after that date. If you fail to make an investment
sufficient to meet the intended investment within the 13‑month period, the
difference in Class A sales charges will be charged to your account.
Purchases resulting from the reinvestment of dividends and other distributions
do not apply toward fulfillment of the LOI. For Mid Cap Value, Chartwell Small
Cap Growth, Small Cap Value, Capital Appreciation, International Stock, Growth
& Income, Mid Cap Growth, Small Cap Growth, Mid Cap and Small Cap shares
equal to 4.75% of the amount of the LOI will be held in escrow during the
13-month period. Shares equal to 3.75% of the amount of the LOI will be held in
escrow during the 13-month period for Real Income, Short Duration High Yield,
Core Bond, Core Plus Bond and Unconstrained. If, at the end of that time the
total amount of purchases made is less than the amount intended, you will be
required to pay the difference between the reduced sales charge and the sales
charge applicable to the individual purchases had the LOI not been in effect.
This amount will be obtained from redemption of the escrow shares. Any remaining
escrow shares will be released to you.
SIMPLE IRA | By investing in a SIMPLE IRA plan
you and all plan participants will receive a reduced Class A sales charge
on all plan contributions that exceed quantity discount amounts. SIMPLE IRA plan
accounts are not eligible to be counted under a rights of accumulation or LOI
sales charge reduction or waiver with accounts other than accounts in the SIMPLE
IRA plan unless approved by the Manager.
Sales charge waiver | Class A shares may
be purchased at NAV without any sales charge by:
• |
|
The
Manager, its affiliates, directors, officers and employees; Trustees and
directors of any affiliate of the Manager; any mutual fund managed by the
Manager and current and retired officers and Trustees of a fund; the
subadviser of any mutual fund managed by the Manager and its current
directors, officers and employees; employees and registered financial
advisers of broker-dealers that have selling arrangements with the funds’
Distributor; directors, officers and employees of banks and trust
companies that are party to agency agreements with the Distributor; all
such persons’ immediate relatives (spouse, parents, siblings, children –
including in‑law relationships) and beneficial
accounts; |
• |
|
Investors
who participate in certain wrap fee investment programs or certain
retirement programs sponsored by broker-dealers or other service
organizations which have entered into service agreements with the Manager
or the Distributor. Such programs generally have other fees and expenses,
so you should read any materials provided by that organization;
and |
• |
|
Investors
who participate in self-directed investment accounts offered by financial
intermediaries who have entered into a selling agreement with the funds’
Distributor. Financial intermediaries offering self-directed accounts may
or may not charge a transaction fee to their customers, so you should read
any materials provided by those financial
intermediaries. |
Ameriprise
Financial, Inc. (“Ameriprise”)
Effective
January 15, 2021, shareholders purchasing fund shares through an Ameriprise
Financial brokerage account are eligible for the following front‑end sales
charge waivers, which may differ from those disclosed elsewhere in these funds’
prospectus or SAI. The following information applies to Class A shares
purchases if you have an account with or otherwise purchase fund shares through
Ameriprise Financial:
Front‑End
Sales Charge Waivers on Class A Shares available at Ameriprise
• |
|
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs or
SAR‑SEPs; |
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the same fund family); |
• |
|
Shares
exchanged from Class C shares of the same fund in the month of or
following the 7‑year anniversary of the purchase date. To the extent that
this prospectus elsewhere provides for a waiver with respect to exchanges
of Class C shares or conversion of Class C shares following a
shorter holding period, that waiver will apply; |
• |
|
Employees
and registered representatives of Ameriprise Financial or its affiliates
and their immediate family members; |
• |
|
Shares
purchased by or through qualified accounts (including IRAs, Coverdell
Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and
defined benefit plans) that are held by a covered family member, defined
as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s
lineal |
|
| |
140 | rjinvestmentmanagement.com |
|
|
Your
Investment
|
ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step‑son, daughter,
step-daughter, grandson, granddaughter, great grandson, great
granddaughter) or any spouse of a covered family member who is a lineal
descendant; and |
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (i.e. Rights of
Reinstatement). |
Robert
W. Baird & Co. (“Baird”)
Effective
June 15, 2020, shareholders purchasing fund shares through a Baird platform
or account will only be eligible for the following sales charge waivers
(front‑end sales charge waivers and CDSC waivers) and discounts, which may
differ from those disclosed elsewhere in this Prospectus or the SAI.
Front‑End
Sales Charge Waivers on Investors A‑shares available at Baird
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same
fund; |
• |
|
Shares
purchased by employees and registered representatives of Baird or its
affiliate and their family members as designated by
Baird; |
• |
|
Shares
purchased using the proceeds of redemptions from within the same fund
family, provided (1) the repurchase occurs within 90 days following
the redemption, (2) the redemption and purchase occur in the same
accounts, and (3) redeemed shares were subject to a front‑end or
deferred sales charge (known as rights of
reinstatement); |
• |
|
A
shareholder in the funds’ Investor C Shares will have their shares
converted at net asset value to Investor A shares of the same fund if the
shares are no longer subject to CDSC and the conversion is in line with
the policies and procedures of Baird; and |
• |
|
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage
account at Baird, including 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase pension plans and defined
benefit plans. For purposes of this provision, employer-sponsored
retirement plans do not include SEP IRAs, Simple IRAs or
SAR‑SEPs. |
CDSC
Waivers on Investor A and C shares Available at Baird
• |
|
Shares
sold due to death or disability of the
shareholder; |
• |
|
Shares
sold as part of a systematic withdrawal plan as described in the funds’
Prospectus; |
• |
|
Shares
bought due to returns of excess contributions from an IRA
Account; |
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable Internal Revenue Service regulations as described in the funds’
prospectus; |
• |
|
Shares
sold to pay Baird fees but only if the transaction is initiated by Baird;
and |
• |
|
Shares
acquired through a right of reinstatement. |
Front‑End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulation
• |
|
Breakpoints
as described in this prospectus; |
• |
|
Rights
of accumulations which entitles shareholders to breakpoint discounts will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Baird.
Eligible fund family assets not held at Baird may be included in the
rights of accumulations calculation only if the shareholder notifies his
or her financial advisor about such assets; and |
• |
|
Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated
purchases of fund family assets through Baird, over a 13‑month period of
time. |
Janney
Montgomery Scott LLC (“Janney”)
Effective
May 1, 2020, if you purchase fund shares through a Janney brokerage
account, you will be eligible for the following load waivers (front‑end sales
charge waivers and contingent deferred sales charge (“CDSC”), or back‑end sales
charge, waivers) and discounts, which may differ from those disclosed elsewhere
in this fund’s Prospectus or SAI.
Front‑end
sales charge* waivers on Class A shares available at Janney
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family); |
• |
|
Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by
Janney; |
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within ninety (90) days
following the |
|
| |
| |
rjinvestmentmanagement.com | 141 |
Your
Investment
|
redemption,
(2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front‑end or deferred sales
load (i.e., right of reinstatement); |
• |
|
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
purposes of this provision, employer-sponsored retirement plans do not
include SEP IRAs, Simple IRAs, SAR‑SEPs or Keogh plans;
and |
• |
|
Shares
acquired through a right of reinstatement; and Class C shares that
are no longer subject to a contingent deferred sales charge and are
converted to Class A shares of the same fund pursuant to Janney’s
policies and procedures. |
CDSC
waivers on Class A and C shares available at Janney
• |
|
Shares
sold upon the death or disability of the
shareholder; |
• |
|
Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus; |
• |
|
Shares
purchased in connection with a return of excess contributions from an IRA
account; |
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder
reaches qualified age based on applicable IRS
regulations; |
• |
|
Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney; |
• |
|
Shares
acquired through a right of reinstatement; and |
• |
|
Shares
exchanged into the same share class of a different
fund. |
Front‑end
sales charge* discounts available at Janney: breakpoints, rights of
accumulation, and/or letters of intent
• |
|
Breakpoints
as described in the fund’s Prospectus; |
• |
|
Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint
discounts, will be automatically calculated based on the aggregated
holding of fund family assets held by accounts within the purchaser’s
household at Janney. Eligible fund family assets not held at Janney may be
included in the ROA calculation only if the shareholder notifies his or
her financial advisor about such assets; and |
• |
|
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13‑month time period. Eligible fund
family assets not held at Janney Montgomery Scott may be included in the
calculation of letters of intent only if the shareholder notifies his or
her financial advisor about such assets. |
*Also
referred to as an “initial sales charge.”
Merrill
Lynch
Purchases
or sales of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund
shares through a Merrill platform or account will be eligible only for the
following sales load waivers (front-end, contingent deferred, or back-end
waivers) and discounts, which differ from those disclosed elsewhere in this
Fund’s prospectus. Purchasers will have to buy mutual fund shares directly from
the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It
is the client’s responsibility to notify Merrill at the time of purchase or sale
of any relationship or other facts that qualify the transaction for a waiver or
discount. A Merrill representative may ask for reasonable documentation of such
facts and Merrill may condition the granting of a waiver or discount on the
timely receipt of such documentation.
Additional
information on waivers and discounts is available in the Merrill Sales Load
Waiver and Discounts Supplement (the “Merrill SLWD Supplement”) and in the
Mutual Fund Investing at Merrill pamphlet at ml.com/funds (the referenced
Merrill documents and website do not form a part of this prospectus). Clients
are encouraged to review these documents and speak with their financial advisor
to determine whether a transaction is eligible for a waiver or
discount.
Front‑end
Load Waivers available at Merrill Lynch
• |
|
Shares
of mutual funds available for purchase by employer-sponsored retirement,
deferred compensation, and employee benefit plans (including health
savings accounts) and trusts used to fund those plans provided the shares
are not held in a commission-based brokerage account and shares are held
for the benefit of the plan. For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs,
SAR- SEPs or Keoeh plans; |
• |
|
Shares
purchased through a Merrill investment advisory
program; |
• |
|
Brokerage
class shares exchanged from advisory class shares due to the holdings
moving from a Merrill investment advisory program to a Merrill brokerage
account; |
• |
|
Shares
purchased through the Merrill Edge Self-Directed
platform; |
|
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142 | rjinvestmentmanagement.com |
|
|
Your
Investment
• |
|
Shares
purchased through the systematic reinvestment of capital gains
distributions and dividend reinvestment when purchasing shares of the same
mutual fund in the same account; |
• |
|
Shares
exchanged from level-load shares to front-end load shares of the same
mutual fund in accordance with the description in the Merrill SLWD
Supplement; |
• |
|
Shares
purchased by eligible employees of Merrill or its affiliates and their
family members who purchase shares in accounts within the employee’s
Merrill Household (as defined in the Merrill SLWD
Supplement); |
• |
|
Shares
purchased by eligible persons associated with the fund as defined in this
prospectus (e.g. the fund’s officers or trustees);
and |
• |
|
Shares
purchased from the proceeds of a mutual fund redemption in front-end load
shares provided (I) the repurchase is in a mutual fund within the same
fund family; (2) the repurchase occurs within 90 calendar days from the
redemption trade date, and (3) the redemption and purchase occur in the
same account (known as Rights of Reinstatement). Automated transactions
(i.e. systematic purchases and withdrawals) and purchases made after
shares are automatically sold to pay Merrill’s account maintenance fees
are not eligible for Rights of Reinstatement. |
Contingent
Deferred Sales Charge (“CDSC”) Waivers on Front-end, Back-end, and Level Load
Shares Available at Merrill Lynch
• |
|
Shares
sold due to the client’s death or disability (as defined by Internal
Revenue Code Section 22(e)(3)); |
• |
|
Shares
sold pursuant to a systematic withdrawal program subject to Merrill’s
maximum systematic withdrawal limits as described in the Merrill SLWD
Supplement; |
• |
|
Shares
sold due to return of excess contributions from an IRA
account; |
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the investor reaching the qualified age based on
applicable IRS regulation; and |
• |
|
Front-end
or level-load shares held in commission-based, non-taxable retirement
brokerage accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple
IRAs, SAR-SEPs or Keogh plans) that are transferred to fee-based accounts
or platforms and exchanged for a lower cost share class of the same mutual
fund. |
Front‑end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of
Accumulation & Letters of Intent
• |
|
Breakpoint
discounts, as described in this prospectus, where the sales load is at or
below the maximum sales load that Merrill permits to be assessed to a
front-end load purchase, as described in the Merrill SLWD
Supplement; |
• |
|
Rights
of Accumulation (ROA), as described in the Merrill SLWD Supplement, which
entitle clients to breakpoint discounts based on the aggregated holdings
of mutual fund family assets held in accounts in their Merrill Household;
and |
• |
|
Letters
of Intent (LOI), which allow for breakpoint discounts on eligible new
purchases based on anticipated future eligible purchases within a fund
family at Merrill, in accounts within your Merrill Household, as further
described in the Merrill SLWD Supplement. |
Morgan
Stanley Wealth Management
Shareholders
purchasing fund shares through a Morgan Stanley Wealth Management transactional
brokerage account will be eligible only for the following front‑end sales charge
waivers with respect to Class A shares, which may differ from and may be
more limited than those disclosed elsewhere in this fund’s Prospectus or
SAI:
Front‑end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth
Management
• |
|
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs, SAR‑SEPs or Keogh
plans; |
• |
|
Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules; |
• |
|
Shares
purchased through reinvestment of dividends and other distributions when
purchasing shares of the same fund; |
• |
|
Shares
purchased through a Morgan Stanley self-directed brokerage
account; |
• |
|
Class C
(i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same
fund pursuant to Morgan Stanley Wealth Management’s share class conversion
program; and |
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same
account, and (iii) redeemed shares were subject to a front‑end or
deferred sales charge. |
Oppenheimer &
Co. Inc. (“OPCO”)
Effective
June 15, 2020, shareholders purchasing fund shares through an OPCO platform
or account are eligible only for the following load waivers (front‑end sales
charge waivers and contingent deferred, or back‑end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this fund’s
Prospectus or SAI.
|
| |
| |
rjinvestmentmanagement.com | 143 |
Your
Investment
Front‑end
Sales Load Waivers on Class A Shares available at OPCO
• |
|
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including
health savings accounts) and trusts used to fund those plans, provided
that the shares are not held in a commission-based brokerage account and
shares are held for the benefit of the plan; |
• |
|
Shares
purchased by or through a 529 Plan; |
• |
|
Shares
purchased through a OPCO affiliated investment advisory
program; |
• |
|
Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other
fund within the fund family); |
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (known as Rights of
Reinstatement); |
• |
|
A
shareholder in the fund’s Class C shares will have their shares
converted at net asset value to Class A shares (or the appropriate
share class) of the fund if the shares are no longer subject to a CDSC and
the conversion is in line with the policies and procedures of
OPCO; |
• |
|
Employees
and registered representatives of OPCO or its affiliates and their family
members; and |
• |
|
Directors
or Trustees of the fund, and employees of the fund’s investment adviser or
any of its affiliates, as described in this
prospectus. |
CDSC
Waivers on A, B and C Shares available at OPCO
• |
|
Death
or disability of the shareholder; |
• |
|
Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus; |
• |
|
Return
of excess contributions from an IRA Account; |
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable IRS regulations as described in the
prospectus; |
• |
|
Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO;
and |
• |
|
Shares
acquired through a right of reinstatement. |
Front‑end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
• |
|
Breakpoints
as described in this prospectus; and |
• |
|
Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family assets held by accounts within the purchaser’s household at OPCO.
Eligible fund family assets not held at OPCO may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor
about such assets. |
Raymond
James & Associates, Inc., Raymond James Financial Services, Inc. and
each entity’s affiliates (“Raymond James”)
Shareholders
purchasing fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, are eligible only for the following load waivers (front‑end sales
charge waivers and contingent deferred, or back‑end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in the funds’
prospectus or SAI.
Front‑end
sales load waivers on Class A shares available at Raymond James
• |
|
Shares
purchased in an investment advisory program; |
• |
|
Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions; |
• |
|
Employees
and registered representatives of Raymond James or its affiliates and
their family members as designated by Raymond
James; |
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same
account, and (3) redeemed shares were subject to a front‑end or
deferred sales load (known as Rights of Reinstatement);
and |
• |
|
A
shareholder in the fund’s Class C shares will have their shares
converted at net asset value to Class A shares (or the appropriate
share class) of the fund if the shares are no longer subject to a CDSC and
the conversion is in line with the policies and procedures of Raymond
James. |
CDSC
Waivers on Classes A, B and C shares available at Raymond James
• |
|
Death
or disability of the shareholder; |
|
| |
144 | rjinvestmentmanagement.com |
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|
Your
Investment
• |
|
Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus; |
• |
|
Return
of excess contributions from an IRA Account; |
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching the qualified age based on
applicable IRS regulations as described in the fund’s
prospectus; |
• |
|
Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James; and |
• |
|
Shares
acquired through a right of reinstatement. |
Front‑end
load discounts available at Raymond James: breakpoints, and/or rights of
accumulation
• |
|
Breakpoints
as described in this prospectus; |
• |
|
Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Raymond James.
Eligible fund family assets not held at Raymond James may be included in
the calculation of rights of accumulation only if the shareholder notifies
his or her financial advisor about such assets;
and |
• |
|
Letters
of intent which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13‑month time period. Eligible fund
family assets not held at Raymond James may be included in the calculation
of letters of intent only if the shareholder notifies his or her financial
advisor about such assets. |
Stifel,
Nicolaus & Company, Incorporated (“Stifel”)
Effective
July 1, 2020, shareholders purchasing fund shares through a Stifel platform
or account or who own shares for which Stifel or an affiliate is the
broker-dealer of record are eligible for the following additional sales charge
waiver.
Front‑end
Sales Load Waiver on Class A Shares
• |
|
Class C
shares that have been held for more than seven (7) years will be
converted to Class A shares of the same fund pursuant to Stifel’s
policies and procedures; and |
• |
|
All
other sales charge waivers and reductions described elsewhere in the
fund’s Prospectus or SAI still apply. |
Class A
shares are offered at NAV without any sales charge to these persons and
organizations due to anticipated economies in sales effort and expense.
Investments of $1,000,000 or more in Class A
shares | Carillon, the Distributor or one or more of their Affiliates may
pay a one‑time up‑front sales concession from its own resources to
broker-dealers and financial intermediaries for purchases of Class A shares
of $1,000,000 or more according to the following schedule: 0.80% of purchases
between $1 million and $2.5 million, 0.60% of purchases between
$2.5 million and $5 million, 0.35% of purchases between
$5 million and $8 million, 0.25% of purchases between $8 million
and $15 million and 0.15% of purchases over $15 million.
Any
purchase for which the one‑time sales concession was paid will be subject to a
CDSC payable by you based on the lower of the cost of the shares being redeemed
or their NAV at the time of redemption. If shares are held for up to 6 months
there will be a CDSC of 1.00%, and if the shares are held for 6 to 18 months
there will be a CDSC of 0.75%. Former Class Y shareholders whose Class Y shares
were converted to Class A shares are not subject to the CDSC on redemptions of
Class A shares. Please note that some qualified retirement plans restrict the
payment of a CDSC, therefore no sales concessions shall be paid with respect to
such plans. Qualified retirement plans should consider purchasing Class I
or Class R shares which do not have a CDSC. The Manager reserves the right
to alter or change the finder’s fee policy at any time at its own
discretion.
More
information concerning sales charges and related reductions and waivers can be
found in the SAI and, free of charge, on our website,
rjinvestmentmanagement.com.
Application
of CDSC
The
CDSC for Class A shares and Class C Shares is calculated based upon
the original purchase cost or the current market value of the shares being sold,
whichever is less. Because of rounding of the calculation in determining the
CDSC, you may pay more or less than the indicated rate. Your CDSC holding period
is based upon the anniversary of your purchase.
To
keep your CDSC as low as possible, each time you place a request to sell shares
we will first sell any shares in your account that carry no CDSC. If there are
not enough of these to meet your request, we will sell those shares that have
been held the longest. There is no CDSC on shares acquired through reinvestment
of dividends or other distributions. However, any period of time you held shares
of a money market fund managed or offered by the Manager will not be counted for
purposes of calculating the CDSC.
|
| |
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rjinvestmentmanagement.com | 145 |
Your
Investment
To
receive a reduction or waiver in your Class A and Class C CDSC, you
must advise your financial adviser or the transfer agent of your eligibility at
the time of purchase.
The
CDSC for Class A shares and Class C shares is generally waived if the
shares are sold:
• |
|
To
make certain distributions from retirement
plans; |
• |
|
Because
of shareholder death or disability (including shareholders who own shares
in joint tenancy with a spouse); |
• |
|
To
make payments through certain sales from a Systematic Withdrawal Plan of
up to 12% annually of the account balance at the beginning of the plan;
or |
• |
|
Due
to involuntary redemptions by a fund as a result of your account not
meeting the minimum balance requirements, the termination and liquidation
of a fund, or other actions. |
Reinstatement
Privilege
If
you sell Class A or Class C shares of a mutual fund managed by the
Manager, you may reinvest some or all of the sales proceeds up to 90 calendar
days later in the same class of any mutual fund managed by the Manager within
any account eligible to be linked for rights of accumulation without incurring
additional sales charges. If you paid a CDSC, the reinvested shares will have no
holding period requirement. You must notify the Manager and your financial
adviser at the time of investment if you decide to exercise this
privilege.
Investing in Class A shares and Class C
shares
The
minimum investment in A shares and C shares is:
|
|
|
|
|
|
|
| |
Type of account |
|
|
Initial investment |
|
|
|
Subsequent investment |
|
Regular account |
|
|
$1,000 |
|
|
|
No minimum |
|
Periodic investment program |
|
|
$50 |
|
|
|
$50 per month |
|
Retirement account |
|
|
$100 |
|
|
|
No minimum |
|
A
fund may waive these minimum requirements at its discretion. Contact the funds
or your financial adviser for further information.
Class I
Shares
Class I
shares are available to individual investors and qualified institutions with a
minimum investment of $1,000. A fund may waive this minimum amount at its
discretion. Qualified institutions include corporations, banks, insurance
companies, endowments, foundations and trusts.
Class I
shares are also available to investors purchasing through a financial
intermediary within a “wrap,” asset allocation or other fee based advisory
program (“Fee Based Program”), provided that the Fee Based Program sponsor has
selected this class of shares as an acceptable investment for this Fee Based
Program and entered into a distribution arrangement with the Distributor for the
Fee Based Program. For wrap accounts, minimum investments for initial and
subsequent purchases are set by the Fee Based Program sponsor. You must contact
your intermediary to purchase Class I shares in this manner.
Class I
shares have no initial sales charge, deferred sales charge or 12b‑1 fees.
Class I shares may be available on brokerage platforms of firms that have
agreements with the funds’ principal underwriter to offer such shares solely
when acting as an agent for the investor. An investor transacting in the
Class I shares through such a firm may be required to pay a commission
and/or other forms of compensation to the financial intermediary in an amount
determined and separately disclosed to the investor by the financial
intermediary. Because the funds are not parties to any such commission
arrangement between you and your financial intermediary, any purchases and
redemptions of Class I shares will be made at the applicable net asset
value (before imposition of the sales commission). Any such commissions charged
by a financial intermediary are not reflected in the fees and expenses listed in
the “Fees and Expenses of the Fund” section of the Fund Summary for each
applicable fund nor are they reflected in the performance information shown in
the prospectus for the funds because they are not charged by the funds. Each
fund also offers other share classes with different fees and expenses.
Class R‑6
Shares
Class
R-6 shares generally are available only to the following accounts that have
$1,000,000 or more in assets invested in the R-6 shares of the fund family. A
fund at its discretion may waive this minimum amount:
|
| |
146 | rjinvestmentmanagement.com |
|
|
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Investment
• |
|
Retirement
plans for which no third-party administrator or other financial
intermediary receives compensation from the Funds, the Distributor or the
Distributor’s affiliates; |
• |
|
A
bank, trust company or similar financial institution investing for its own
account or for trust accounts for which it has authority to make
investment decisions as long as the accounts are not part of a program
that requires payment of Rule 12b-1 or administrative services fees to the
financial institution; |
• |
|
Clients
of investment advisory fee-based wrap programs; |
• |
|
Traditional
and Roth IRAs, SIMPLE IRAs, SEPs, SARSEPs, Coverdell education savings
accounts; |
• |
|
High-net-worth
individuals or corporations who invest directly with the Trust without
using the services of a broker, investment adviser or other financial
intermediary; and |
• |
|
Current
holders of Class R-6 shares of any Fund. |
Class
R-6 shares are not available to retail accounts or to broker-dealer fee-based
wrap programs. Initial and subsequent purchase minimums for individual plan
participants are determined by your Plan Administrator. The Plan Administrator
will transmit purchase and redemption requests to the funds and may charge its
plan participants a fee for this service. Class R-6 shares have no initial sales
charge or deferred sales charge. Class R-6 have no 12b-1 fees.
How
To Invest
Once
you have chosen a share class, the next step is to determine the amount you wish
to invest. There are several ways to invest, although the availability of these
services may be limited by your financial adviser or institution.
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place a purchase request.
Through your financial adviser | You may invest
in a fund by contacting your financial adviser. Your financial adviser can help
you open a new account, review your financial needs and formulate long-term
investment goals and objectives. Your financial adviser or broker will transmit
your request to the fund and may charge you a fee for this service. Your broker
may also designate other intermediaries to receive orders on the fund’s behalf.
Availability of these options may be limited by your financial adviser or
institution.
By mail | You may invest in a fund by
completing and signing an account application from your financial adviser,
through our website, rjinvestmentmanagement.com, or by telephone (800.421.4184).
Indicate the fund, the class of shares and the amount you wish to invest. If you
do not specify a share class, we will automatically choose Class A shares,
which include a front‑end sales charge. Checks must be in U.S. dollars drawn on
an account at a U.S. bank and made payable to the specific fund and class being
purchased. The funds will not accept payment in cash or money orders. The funds
also do not accept third party checks, Treasury checks, credit card checks,
traveler’s checks or starter checks for the purchase of shares. The funds are
unable to accept post-dated checks or any conditional order or payment. Mail the
application and your payment to:
|
| |
Regular
mail
Carillon
Family of Funds
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
|
Overnight
delivery
Carillon
Family of Funds
c/o
U.S. Bank Global Fund Services
615
East Michigan Street, Third Floor
Milwaukee,
WI 53202-5207 |
Note:
The funds do not consider the U.S. Postal Service or other independent delivery
services to be their agents. Therefore, deposit in the mail or with such
services, or receipt at U.S. Bancorp Fund Services, LLC’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
transfer agent of the funds. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s offices.
The
transfer agent will charge a $25 fee against a shareholder’s account, in
addition to any loss sustained by the funds, for any payment that is returned.
It is the policy of the funds not to accept applications under certain
circumstances or in amounts considered disadvantageous to shareholders. The
funds reserve the right to reject any application.
By telephone | You can make additional
purchases by telephone by calling (800.421.4184). You must have banking
information established on your account prior to making a purchase. Your bank
account must be in the same name as your Carillon account. This method cannot be
used to open a new account. Your first telephone purchase can occur no earlier
than 7 business days after the account was opened. During periods of high market
activity, shareholders may encounter higher than usual call wait times. Please
allow sufficient time to place your telephone transaction. Once a telephone
transaction has been placed, it cannot be canceled or modified after the close
of regular trading on the New York Stock Exchange (“NYSE”) (generally, 4:00
p.m., Eastern Time).
Through our website | You can make additional
purchases through our website, rjinvestmentmanagement.com. You must have banking
information established on your account prior to making a purchase. Your bank
account must be in the same name as your Carillon account. This method cannot be
used
|
| |
| |
rjinvestmentmanagement.com | 147 |
Your
Investment
to
open a new account. Once an online transaction has been placed, it cannot be
canceled or modified. Online trades must be received by or prior to the close of
regular trading on the NYSE, which is typically 4:00 p.m. ET.
By periodic investment program | We offer
several plans to allow you to make regular, automatic investments into a fund.
You determine the amount and frequency of your investments. You can terminate
your plan at any time. Any request to change or terminate your periodic
investment program should be submitted to the transfer agent at least 5 days
prior to the effective date. Availability of these plans may be limited by your
financial adviser or institution and by the share class.
• |
|
From
Your Bank Account — You may instruct us to transfer funds from a specific
bank checking or savings account to your account. This service is only
available in instances in which the transfer can be effected by automated
clearinghouse transfer (“ACH”). Complete the appropriate sections of the
account application or the Account Options form to activate this service.
If your bank rejects your payment, the funds’ transfer agent will charge a
$25 fee to your account. The funds reserve the right to cancel an
automatic investment program if payment from your bank is rejected for two
consecutive periods or if you make regular withdrawals from your account
without maintaining the minimum balance. |
• |
|
Automatic
Exchange — You may make automatic regular exchanges between two or more
mutual funds managed or offered by the Manager. These exchanges are
subject to the exchange requirements discussed
below. |
The
intent of these plans is to encourage you to increase your account balance to a
fund’s minimum investment. If you discontinue any of these plans, or make
regular withdrawals from your account without maintaining the minimum balance,
we may require you to buy more shares to keep your account open or we may close
your accounts.
By direct deposit | For Class A shares,
Class C shares and Class I shares, you may instruct your employer,
insurance company, the federal government or other organization to direct all or
part of the payments you receive to your account. All payments from the federal
government, including payroll, pension, Social Security, and income tax refunds
are eligible for this service. The following information must be provided to the
payor in the enrollment process:
U.S.
Bank NA
Milwaukee,
WI
ABA#
075000022
Depositor
#88‑ _ _ _ _ ‑0‑ _ _ _ _ _ _ _ _ _ _
Fund
Number Account Number
The
account must be designated as a checking account. Please note that these
instructions are different than the Federal Reserve wire instructions.
By wire | If you are making your first
investment, before you wire funds, the transfer agent must have a completed
account application. You may mail or overnight deliver your account application
to the transfer agent. Upon receipt of your completed account application, the
transfer agent will establish an account for you. The account number assigned
will be required as part of the instruction that should be provided to your bank
to send the wire. Your bank must include the name and class of the fund you are
purchasing, the account number, and your name so that monies can be correctly
applied. Your bank should transmit funds by wire to:
U.S.
Bank N.A.
777
East Wisconsin Avenue
Milwaukee,
WI 53202
ABA
#075000022
|
| |
Credit:
U.S.
Bancorp Fund Services, LLC
Account
#112‑952‑137 |
|
Further
Credit:
(name
and share class of fund to be purchased)
(shareholder
registration)
(shareholder
account number) |
Before
sending your wire, please contact the transfer agent at 800.421.4184 to advise
of your intent to wire funds. This will ensure prompt and accurate credit upon
receipt of your wire. Wired funds must be received prior to 4:00 p.m. ET to be
eligible for same day pricing. The funds and the transfer agent are not
responsible for the consequences of delays resulting from the banking or Federal
Reserve wire system, or from incomplete wiring instructions.
How
To Sell Your Investment
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place a redemption request.
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Investment
Class A shares,
Class C shares and Class I
shares | You can sell (redeem) Class A, Class C shares and
Class I shares of your fund for cash at any time, subject to certain
restrictions. When you sell shares, payment of the proceeds (less any applicable
CDSC) generally will be made the next business day after your request is
received in good order and, in any event, no later than seven days after your
request is received in good order regardless of payment type. If you sell shares
that were recently purchased by check or ACH deposits, payment will be delayed
until we verify that those funds have cleared, which may take up to 12 calendar
days. Shareholders can avoid this delay by utilizing the wire purchase option.
The funds reserve the right to suspend redemptions or postpone the date of
payment for more than seven days (i) when the NYSE is closed (other than
for customary weekend and holiday closings); (ii) when trading on the NYSE is
restricted; (iii) when the SEC determines that an emergency exists so that
disposal of a fund’s investments or determination of its NAV is not reasonably
practicable; or (iv) by order of the SEC for protection of a fund’s
shareholders. Shares are not subject to a redemption fee.
Shareholders
who hold shares through an IRA or other retirement plan must indicate on their
written redemption request whether to withhold federal income tax. Redemption
requests failing to indicate an election not to have that tax withheld will
generally be subject to 10% withholding thereof. Shares held in an IRA or other
retirement plan accounts may be redeemed by telephone at 800.421.4184. Investors
will be asked whether or not to withhold taxes from any distribution.
You
may contact your financial adviser or the funds’ transfer agent with
instructions to sell your investment in the following ways. Availability of
these options may be limited by your financial adviser or institution.
Through your financial adviser | You may sell
your shares through your financial adviser who can prepare the necessary
documentation. Your financial adviser will transmit your request to sell shares
of your fund and may charge you a fee for this service. Availability of these
options may be limited by your financial adviser or institution.
By telephone | You may sell shares by telephone
by calling 800.421.4184 prior to the close of regular trading on the NYSE, which
is typically 4:00 p.m. ET. If you do not wish to have telephone redemption
privileges, you must complete the appropriate section of the account
application.
When
redeeming shares by telephone, payment of less than $100,000 can be made in one
of the following ways:
• |
|
Directly
to a bank account for which you have previously provided information to us
in writing on your account application or subsequent form. Redemption
proceeds can be wired or funds may be sent via electronic funds transfer
through the Automated Clearing House (ACH) network. Wires are subject to a
$15 fee. There is no charge to have proceeds sent via the ACH system and
funds are generally available in your bank account two to three business
days after we receive your request; or |
• |
|
By
check to your address of record, provided there has not been an address
change in the last 30 calendar days. |
Once
a telephone transaction has been placed, it cannot be canceled or modified after
the close of regular trading on the NYSE (generally, 4:00 p.m., Eastern time).
During periods of high market activity, shareholders may encounter higher than
usual call wait times. Please allow sufficient time to place your telephone
transaction. If you are unable to reach the fund by telephone, you may sell
shares of the fund by sending a written redemption request to the transfer agent
(see the “In writing” section below).
In writing | You may sell shares of a fund by
sending a written redemption request to the transfer agent at the address below.
Your request should be in good order and should specify the fund name and class,
your account number, the name(s) in which the account is registered and the
dollar value or number of shares you wish to sell. Additional documentation may
be required for sales of shares held in corporate, partnership or fiduciary
accounts. Contact the transfer agent at 800.421.4184 with questions on required
documentation.
|
| |
Regular
Mail |
|
Overnight
delivery |
Carillon Family of Funds |
|
Carillon Family of Funds |
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, WI 53201-0701 |
|
Milwaukee, WI
53202-5207 |
Note:
The funds do not consider the U.S. Postal Service or other independent delivery
services to be their agents. Therefore, deposit in the mail or with such
services, or receipt at U.S. Bancorp Fund Services LLC’s post office box, of
purchase orders or redemption requests does not constitute receipt by the
transfer agent of the funds. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s offices.
The
transfer agent may require a signature guarantee for certain redemption
requests. A signature guarantee assures that your signature is genuine and
protects you from unauthorized account redemptions.
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A
signature guarantee, from either a Medallion program member or a non‑Medallion
program member, of each owner is required in the following situations:
• |
|
When
ownership is being changed on your account; |
• |
|
When
redemption proceeds are payable to or sent to any person, address or bank
account not on record; |
• |
|
When
a redemption request is received by the transfer agent and the account
address has changed within the last 30 calendar days;
and/or |
• |
|
For
redemptions in excess of $100,000, with the exception of directly traded
business or omnibus accounts, to existing instructions on
file. |
In
addition to the situations described above, the funds and/or transfer agent
reserve the right to require a signature guarantee in other instances based on
the circumstances relative to the particular situation.
Signature
guarantees will generally be accepted from domestic banks, brokers, dealers,
credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations, as well as from
participants in the NYSE Medallion Signature Program and the Securities Transfer
Agents Medallion Program (“STAMP”). A notary public is not an acceptable
signature guarantor.
Non‑financial
transactions, including establishing or modifying certain services on an
account, may require a signature guarantee or signature verification from a
Signature Validation Program member or other acceptable form of authentication
from a financial institution source.
The
funds reserve the right to waive any signature requirement at their
discretion.
Through our website | For certain accounts, you
may sell shares through our website, rjinvestmentmanagement.com, prior to the
close of regular trading on the NYSE, which is typically 4:00 p.m. ET.
When
redeeming shares through our website, payment of less than $100,000 can be made
in one of the following ways:
• |
|
Directly
to a bank account for which you have previously provided information to us
in writing on your account application or subsequent form. Funds are
generally available in your bank account two to three business days after
we receive your request; or |
• |
|
By
check to your address of record, provided there has not been an address
change in the last 30 calendar days. |
Once
an online transaction has been placed, it cannot be canceled or modified.
Systematic withdrawal plan | You may establish
a plan for periodic withdrawals from your account. Withdrawals can be made on
the 1st, 5th, 10th, or 20th day of the month at monthly, quarterly, semi-annual
or annual intervals. If such a day falls on a weekend or holiday, the withdrawal
will take place on the next business day. To establish a plan, complete the
appropriate section of the account application or the Carillon Systematic
Withdrawal Plan Request form (available from your financial adviser, the funds
or through our website, rjinvestmentmanagement.com) and send that form to the
transfer agent. The funds reserve the right to cancel systematic withdrawals if
insufficient shares are available for two or more consecutive months.
If
you elect this method of redemption, a check will be sent to your address of
record, or payment will be made via electronic funds transfer through the ACH
network directly to your bank account. For payment through the ACH network, your
bank must be an ACH member and your bank account information must be maintained
on your fund account. The systematic withdrawal plan may be terminated at any
time by the funds. You may also elect to terminate your participation in the
systematic withdrawal plan at any time by contacting the transfer agent at least
five days prior to the next withdrawal.
A
withdrawal under the systematic withdrawal plan involves a redemption of shares
and may result in a gain or loss for federal income tax purposes. In addition,
if the amount withdrawn exceeds any increase in the value of your account (due
to asset appreciation or dividends credited to your account, for example) the
account ultimately may be depleted. If insufficient shares are available to
provide the full and final systematic withdrawal payment amount requested, the
account will be redeemed in its entirety.
How
To Exchange Your Shares
For
shares managed by a Plan Administrator or Recordkeeper, please contact the Plan
Administrator or Recordkeeper to place an exchange request.
You
can exchange shares of one Carillon fund for shares of the same class of any
other Carillon fund, subject to the investment requirements of that fund. Obtain
a prospectus of that fund from your financial adviser, the funds or through our
website, rjinvestmentmanagement.com. You may exchange your shares by calling
your financial adviser or the funds if you exchange to like-titled Carillon
accounts. Written instructions with a signature guarantee are required if the
accounts are not identically registered. An exchange of shares is treated for
federal income tax purposes as a redemption (sale) of the shares of the fund
from which you are exchanging, on which you might realize a capital gain or loss
(unless you hold your shares through a tax‑deferred arrangement), and a purchase
of shares of the fund into which you are exchanging.
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Your
Investment
Shares
in a Carillon fund on which a sales charge was previously paid will be exchanged
for shares of the same share class of another Carillon fund with no additional
sales charge for the duration that the shares remain in the Carillon Family of
Funds. Exchanges may be subject to a CDSC as described above in “How to Sell
Your Investment.” For purposes of determining the CDSC, Class A and
Class C shares will continue to age from their original investment date and
will retain the same CDSC rate as they had before the exchange. However, any
period of time you held shares of a money market fund managed or offered by the
Manager will not be counted for purposes of calculating the CDSC.
You
may be able to convert your shares of a fund to a different share class of the
same fund that has a lower expense ratio provided certain conditions are met;
unlike an exchange of one fund’s shares for shares of another fund, a conversion
of shares of a fund to a different class of shares of the same fund generally is
not a taxable event. This conversion feature is intended for shares held through
a financial intermediary offering a fee‑based or wrap fee program that has an
agreement with the Adviser or the Distributor specific for this purpose. In such
instance, your shares may be converted under certain circumstances. Generally,
Class C shares are not eligible for conversion until the applicable CDSC
period has expired. Retirement class shares of a fund may be converted to
Class A or Class I shares of the same fund if you cease to satisfy the
share eligibility requirements of the retirement class and meet the conditions
of the receiving fund. Please contact the funds or your financial adviser for
additional information.
Please
consult a tax professional before requesting an exchange. Not all share classes
are available through all intermediaries. Each Carillon fund reserves the right
to reject any exchange request and to modify or terminate the exchange privilege
at any time.
Valuing
Your Shares
The
price at which an order to purchase or sell a fund’s shares is effected is based
on the NAV per share of each class of a fund next calculated after the order is
placed, plus any applicable sales charge. Each fund normally determines the NAV
of its shares each business day as of the scheduled close of regular trading on
the New York Stock Exchange (NYSE) and the Nasdaq, (typically 4:00 p.m. ET). The
NYSE and NASDAQ normally are open for business Monday through Friday except the
following holidays: New Year’s Day, Martin Luther King Day, President’s Day,
Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day. The fund will not treat an intraday unscheduled
disruption in trading on either the NYSE or Nasdaq as a closure of that
particular market, and will price its shares as of the normally scheduled close
of the NYSE and Nasdaq if the disruption directly affects only one of those
markets. If the NYSE or other securities exchange modifies the published closing
price of securities traded on that exchange after the NAV is calculated, the
funds are not required to recalculate their NAV. The funds do not price their
shares on days that the NYSE is closed.
Generally,
portfolio securities for which market quotations are readily available are
valued at market value; however, the market quotation price may be adjusted to
reflect events that occur between the close of those markets and the time of the
funds’ determination of the NAV. A market quotation may be considered unreliable
or unavailable for various reasons, such as (1) the quotation may be stale,
(2) the quotation may be unreliable because the security is not actively
traded, (3) trading on the security halted before the close of the trading
market, (4) the security is newly issued, (5) issuer specific or
vendor-specific events occurred after the security halted trading, or
(6) due to the passage of time between the close of the market on which the
security trades and the close of the NYSE and the Nasdaq. Issuer specific events
that may cause the last market quotation to be unreliable include (1) a
merger or insolvency, (2) events which affect a geographical area or an
industry segment, such as political events or natural disasters, or
(3) market events, such as a significant movement in the U.S.
markets.
For
most securities, both the latest transaction prices and adjustments are
furnished by independent pricing services. All other securities and assets for
which market quotations are unavailable or unreliable are valued at their fair
value in good faith using the investment adviser’s Pricing and Valuation
Procedures (“Procedures”), which have been approved by the Board. For example,
small-cap securities that are thinly traded or illiquid may be fair valued. Fair
value is the amount that the owner might reasonably expect to receive for the
security upon its current sale. Fair value requires consideration of all
appropriate factors, including indications of fair value available from
independent pricing services. A fair value price is an estimated price and may
vary from the prices used by other mutual funds to calculate their NAV.
Rule
2a-5 under the Investment Company Act (the “Valuation Rule”) establishes
requirements for determining fair value in good faith for purposes of the
Investment Company Act, including related oversight and reporting requirements.
The rule also defines when market quotations are “readily available” for
purposes of the Investment Company Act, the threshold for determining whether a
fund must fair value a security.
The
Valuation Rule permits a fund’s board to designate the fund’s primary investment
adviser as “valuation designee” to perform the fund’s fair value determinations
subject to board oversight and certain reporting and other requirements intended
to ensure that the registered investment company’s board receives the
information it needs to oversee the investment adviser’s fair value
determinations.
The
Board has designated Carillon as valuation designee under the Valuation Rule to
perform fair value functions in accordance with the requirements of the
Valuation Rule. Carillon performs these duties through a Valuation Committee,
comprised of employees of Carillon and/or its wholly-owned affiliates.
Carillon’s Valuation Committee monitors for circumstances that may necessitate
the use of fair value. In the event that (1) market quotations are not readily
available,
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Your
Investment
(2)
readily available market quotations are not reflective of market value (prices
deemed unreliable), or (3) a significant event has been recognized in relation
to a security or class of securities, the Valuation Committee will determine
such securities’ fair value in accordance with the Procedures. Significant
events include, but are not limited to, single-issuer events such as corporate
announcements or earnings, multiple-issuer events such as natural disasters and
significant market fluctuations.
There
can be no assurance, however, that a fair value price used on any given day will
more accurately reflect the market value of a security than the market price of
such security on that day, as fair valuation determinations may involve
subjective judgments made by the Valuation Committee. Fair value pricing may
deter shareholders from trading a fund’s shares on a frequent basis in an
attempt to take advantage of arbitrage opportunities resulting from potentially
stale prices of portfolio holdings. However, it cannot eliminate the possibility
of frequent trading. Specific types of securities are valued as follows:
• |
|
Domestic
Exchange Traded Equity Securities — Market quotations are generally
available and reliable for domestic exchange-traded equity securities. If
the prices provided by the independent pricing service and independent
quoted prices are unavailable or unreliable, the Valuation Committee will
fair value the security using the Procedures. |
• |
|
Foreign
Equity Securities — If market quotations are available and reliable for
foreign exchange-traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE and the Nasdaq, closing market
quotations may become unreliable. Consequently, fair valuation of
portfolio securities may occur on a daily basis. The Valuation Committee,
using the Procedures, may fair value a security if certain events occur
between the time the trading of a particular security ends in a foreign
market and a fund’s NAV calculation. The Valuation Committee, using the
Procedures, may also fair value a particular security if the events are
significant and make the closing price unavailable or unreliable. If an
issuer-specific event has occurred that the Valuation Committee
determines, in its judgment, is likely to have affected the closing price
of a foreign security, it will price the security at fair value. The
Valuation Committee also utilizes a screening process from a pricing
vendor to indicate the degree of certainty, based on historical data, that
the closing price in the principal market where a foreign security trades
is not the current market value as of the close of the NYSE. Securities
and other assets quoted in foreign currencies are valued in U.S. dollars
based on exchange rates provided by an independent pricing service. The
pricing vendor, pricing methodology or degree of certainty may change from
time to time. Fund securities primarily traded on foreign markets may
trade on days that are not business days of the funds. Because the NAV of
a fund’s shares is determined only on business days of the fund, the value
of the portfolio securities of a fund that invests in foreign securities
may change on days when shareholders would not be able to purchase or
redeem shares of the fund. |
• |
|
Fixed
Income Securities — Government bonds, corporate bonds, asset-backed bonds,
municipal bonds, short-term securities (investments that have a maturity
date of 60 days or less) and convertible securities, including high yield
or junk bonds, normally are valued on the basis of evaluated prices
provided by independent pricing services. Evaluated prices provided by the
independent pricing services may be determined without exclusive reliance
on quoted prices, and may reflect appropriate factors and appropriate
methodologies that have been considered, such as institution‑size trading
in similar groups of securities, developments related to special
securities, dividend rate, maturity and other market data. If the
evaluated prices provided by the independent pricing service and
independent quoted prices are unavailable or unreliable, the Valuation
Committee will fair value the security using the
Procedures. |
• |
|
Futures
and Options — Futures and options are valued on the basis of market
quotations, if available and reliable. If prices provided by independent
pricing services and independent quoted prices are unavailable or
unreliable, the Valuation Committee will fair value the security using the
Procedures. |
• |
|
Credit
Default Swaps — Credit default swaps are valued with prices provided by
independent pricing services. If prices provided by independent pricing
services are unavailable or unreliable, the Valuation Committee will fair
value the security using the Procedures. |
• |
|
Forward
Contracts —Forward contracts are valued daily at current forward rates
provided by an independent pricing services. If prices provided by
independent pricing services and independent quoted prices are unavailable
or unreliable, the Valuation Committee will fair value the security using
the Procedures. |
• |
|
Investment
Companies and ETFs — Investments in other open-end investment companies
are valued at their reported NAV. The prospectuses for these companies
explain the circumstances under which these companies will use fair value
pricing and the effect of the fair value pricing. In addition, investments
in closed-end funds and ETFs are valued on the basis of market quotations,
if available and reliable. If the prices provided by independent pricing
services and independent quoted prices are unavailable or unreliable, the
Valuation Committee will fair value the security using the
Procedures. |
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Account
and Transaction Policies
Account
and Transaction Policies
Doing
Business with the Funds
Timing of orders | All orders to purchase or
sell shares are executed at the next NAV, plus any applicable sales charge,
calculated after the order has been received in “good order” by an authorized
agent of the funds. Orders are accepted until the close of regular trading on
the NYSE every business day, normally 4:00 p.m. ET, and are executed the same
day at that day’s price. To ensure this occurs, the Distributor and/or dealers
are responsible for transmitting all orders to the funds in compliance with
their contractual deadline.
Good order requirements | For the funds to
process a request, it must be in “good order.” Good order means that Carillon
has been provided sufficient information necessary to process the request as
outlined in this Prospectus, including:
• |
|
The
shareholder’s name; |
• |
|
The
share or dollar amount to be transacted; and |
• |
|
The
signatures of all registered shareholders with signature guarantees, if
applicable. |
Further,
there must not be any restrictions applied to the account. Certain requests are
subject to the transfer agent’s verification procedures before they are
considered in good order. A request is not considered to be in “good order” by
the funds until it meets these requirements.
Account registration options | Carillon offers
several options for registering your account. To establish a Transfer on Death
(“TOD”) arrangement, an additional TOD agreement is required. Additionally,
Carillon offers a range of IRA plans including traditional, Roth, SEP and SIMPLE
IRA plans. IRA plans require a separate adoption agreement as well as separate
forms to sell your shares. The TOD and IRA agreements are available from your
financial adviser, the funds or through our website,
rjinvestmentmanagement.com.
Customer identification and verification
procedures | The funds are required under the USA PATRIOT Act to obtain
certain information about you in order to open an account. You must provide the
funds with the name, physical address (mailing addresses containing only a P.O.
Box are not accepted), Social Security or other taxpayer identification number
and date of birth of all owners of the account. If you do not provide us with
this information, your account will not be opened and your investment will be
returned. If you are opening the account in the name of a legal entity (e.g., partnership, limited liability company,
business trust, corporation, etc.), you must also supply the identity of the
beneficial owners. For these entities, the person opening the account on the
entity’s behalf must provide this information. The funds will use this
information to verify your identity using various methods. In the event that
your identity cannot be sufficiently verified, the funds may employ additional
verification methods or refuse to open your account. Under certain
circumstances, it may be appropriate for the funds to close or suspend further
activity in an account.
Shares
of the funds have not been registered for sale outside of the United States and
U.S. territories. The funds generally do not permit the establishment of new
accounts for foreign individuals or entities. The Carillon funds generally do
not sell shares directly to individual investors residing outside the United
States, even if they are United States citizens or lawful permanent residents,
except to investors at United States embassies with DPO addresses and investors
with United States military APO or FPO addresses. Non‑individual entities
registered outside the United States, except Plan Administrators that have
entered into an agreement with the Distributor, are not permitted to invest
directly with the funds.
Restrictions on orders | The funds and the
Distributor reserve the right to reject any purchase or exchange order for any
reason and to suspend the offering of fund shares for a period of time. There
are certain times when you may not be able to sell shares of a fund or when we
may delay paying you the redemption proceeds. This may happen during unusual
market conditions or emergencies as a result of which a fund cannot determine
the value of its assets or sell its holdings.
Website | Subject to availability by your
financial institution, you may access your account information, including
balances, statements, tax forms and transaction history, through our website,
rjinvestmentmanagement.com. You may also update your account and process
purchases, redemptions, and exchanges through our website. Additional
information, including current fund performance and various account forms and
agreements, is also available on our website.
Telephone | For your protection, telephone
requests may be recorded in order to verify their accuracy and monitor call
quality. In addition, we will take measures to verify the identity of the
caller, such as asking for name, account number, Social Security or other
taxpayer identification number and other relevant information. If appropriate
measures are taken, we are not responsible for any losses that may occur to any
account due to an unauthorized telephone request. If an account has more than
one owner or authorized person, the funds will accept telephone instructions
from any one owner or authorized person.
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Account
and Transaction Policies
Payment of redemption proceeds | The funds
generally intend to meet redemption requests, under both normal and stressed
market conditions, by paying out available cash, by selling portfolio holdings
(including cash equivalent portfolio holdings), or by borrowing through the
funds’ line of credit and other available methods. The funds also reserve the
right to satisfy redemption requests in whole or in part by making payment in
securities or other property (this is known as a redemption‑in‑kind) in stressed
market conditions and other appropriate circumstances. To the extent the funds
redeem their shares in marketable securities the shareholder assumes any risk of
the market price of such securities fluctuating. In addition, the shareholder
will bear any brokerage and related costs incurred in disposing of or selling
the securities it receives from the funds and the risk that there may not be a
liquid market for those securities.
Accounts with below-minimum balances | If your
account balance falls below $1,000 as a result of selling shares (and not
because of performance or sales charges), each fund reserves the right to
request that you buy more shares or close your account. If your account balance
is still below the minimum 30 calendar days after notification, each fund
reserves the right to close your account and send the proceeds to your address
of record.
Abandoned accounts | Your mutual fund account
may be transferred to your state of residence if no activity occurs within your
account during the “inactivity period” specified in your state’s abandoned
property laws. If the funds are unable to locate a shareholder, they will
determine whether the shareholder’s account can legally be considered abandoned.
The funds are legally obligated to escheat (or transfer) abandoned property to
the appropriate state’s unclaimed property administrator in accordance with
statutory requirements. The shareholder’s last known address of record
determines which state has jurisdiction. Interest or income is not earned on
redemption or distribution checks sent to you during the time the check remained
uncashed. Investors who are residents of the state of Texas may designate a
representative to receive legislatively required unclaimed property due
diligence notifications. Please contact the funds to complete a Texas
Designation of Representative form.
Market timing | Market timing typically refers
to the practice of frequent trading in the shares of mutual funds in order to
exploit inefficiencies in fund pricing. Such transactions include trades that
occur when a fund’s NAV does not fully reflect the value of the fund’s holdings
— for example, when a fund owns holdings, such as foreign or thinly traded
securities, that are valued in a manner that may not reflect the most updated
information possible. The NAV for the International Stock Fund may reflect price
differentials because it invests significantly in foreign securities. Each fund
generally prices its foreign securities using fair valuation procedures approved
by the Board as part each fund’s calculation of its NAV. These prices may be
affected by events that occur after the close of a foreign market but before
each fund prices its shares. Excessive trading or market timing can be
disruptive to a fund’s efficient management and have a dilutive effect on the
value of the investments of long-term fund shareholders, increase the
transaction and other costs of a fund and increase the fund’s recognized net
capital gains (and, therefore, unless the fund has a net capital loss for, or
capital loss carryover to, the taxable year in which the gains are realized,
taxable distributions to its shareholders), all of which could reduce the return
to fund shareholders.
The
Board has adopted policies reasonably designed to deter short-term trading of
fund shares. The funds will not enter into agreements to accommodate frequent
purchases or exchanges. Further, the funds have adopted the following
guidelines:
• |
|
The
funds review transaction activity, using established criteria, to identify
transactions that may signal excessive trading. |
• |
|
The
funds may reject any purchase or exchange orders, in whole or in part,
that in their opinion, appear excessive in frequency and/or amount or
otherwise potentially disruptive to a fund. The funds may consider the
trading history of accounts under common ownership or control in this
determination. |
• |
|
All
shareholders are subject to these restrictions regardless of whether you
purchased your shares directly from the funds or through a financial
intermediary. The funds reserve the right to reject combined or omnibus
orders in whole or in part. |
• |
|
The
funds seek the cooperation of broker-dealers and other financial
intermediaries by various methods such as entering into agreements whereby
the funds will request information regarding the identity of specific
investors, transaction information and restricting the ability of
particular investors to purchase fund shares. |
While
the funds apply these policies, there is no guarantee that all market timing
will be detected.
Disclosure of portfolio holdings |
Periodically, customers of the funds express interest in having current
portfolio holdings disclosed to them more often than required by law or
regulation. To satisfy this request, the funds have adopted a policy on
disclosing portfolio holdings to properly manage this process to ensure
confidentiality and proper use of this information. A description of the funds’
policy is included in the SAI. Portfolio information can be found on our
website, rjinvestmentmanagement.com.
Account statements | If you purchase shares
directly from a fund, you will receive monthly or quarterly statements detailing
fund balances and all transactions completed during the prior period and a
confirmation of each transaction. Automatic reinvestments of distributions and
systematic investments/withdrawals may be confirmed only by monthly or quarterly
statements. You should verify the accuracy of all transactions in your account
as soon as you
|
| |
154 | rjinvestmentmanagement.com |
|
|
Account
and Transaction Policies
receive
your confirmations and statements and immediately notify the funds or your
financial adviser of any discrepancies. To enroll in eDelivery of account
statements, visit our website, rjinvestmentmanagement.com.
Householding | In an effort to decrease costs,
the funds intend to reduce the number of duplicate prospectuses, supplements and
other similar documents you receive by sending only one copy of each to those
addresses shared by two or more accounts and to shareholders we reasonably
believe are from the same family or household. Once implemented, if you would
like to discontinue householding for your accounts, please call toll-free at
800.421.4184 to request individual copies of these documents. Once the funds
receive notice to stop householding, we will begin sending individual copies
thirty days after receiving your request. This policy does not apply to account
statements.
Dividends,
Other Distributions and Taxes
General | Each fund distributes all or
substantially all of its net investment income and net capital and foreign
currency gains, if any, to its shareholders every year. Each fund distributes
dividends from its net investment income (“dividends”) to its shareholders
annually, except Growth & Income Fund, which distributes dividends to
its shareholders quarterly and Real Income Fund, Short Duration High Yield Fund,
Core Bond Fund, Core Plus Bond Fund and Unconstrained Bond Fund, which
distribute dividends to their shareholders monthly. Net investment income
generally consists of dividends and interest income received on investments,
less expenses.
The
dividends you receive from a fund generally will be taxed as ordinary income. A
portion of those dividends may be eligible for the maximum federal income tax
rates applicable to “qualified dividend income” distributed to individual and
certain other non‑corporate shareholders (each, a “non‑corporate shareholder”)
who satisfy certain holding period and other restrictions with respect to their
fund shares. Those maximum rates are 15% for a single shareholder with taxable
income not exceeding $518,900, ($583,750 for married shareholders filing
jointly) and 20% for non‑corporate shareholders with taxable income exceeding
those respective amounts, which apply for 2024 and will be adjusted for
inflation annually. Qualified dividend income consists of dividends received
from U.S. corporations and certain qualifying non-U.S. corporations when the
fund satisfies certain holding period requirements with respect to the shares on
which such dividends are paid.
Each
fund also distributes net capital gains (and, in the case of certain funds, net
gains from foreign currency transactions), if any, to its shareholders, normally
once a year. A fund generates capital gains when it sells assets in its
portfolio for profit. Capital gain distributions are taxed differently depending
on how long the fund held the asset(s) that generated the gain (not on how long
you hold your shares in the fund). Distributions to you of net capital gains
recognized on the sale of assets held for one year or less are taxed as ordinary
income; distributions to you of net capital gains recognized on the sale of
assets held longer than one year are taxed at the maximum federal income tax
rates mentioned above.
Generally,
fund distributions are taxable to you in the year you receive them. However, any
distributions that are declared in October, November or December but paid in
January generally are taxable as if received on December 31. Tax laws and rates
often change over time. Please consult a tax professional for more
information.
A
fund’s distributions of dividends and net realized gains are automatically
reinvested in additional shares of the distributing class of the fund at NAV
(without sales charge) unless you opt to take your distributions in cash, in the
form of a check, or direct them for purchase of shares in the same class of
another fund. You are taxed in the same manner whether you receive your
dividends and other distributions in cash or reinvest them in additional fund
shares. If you elect to receive dividends and/or other distributions in cash,
and the U.S. Postal Service cannot deliver the check, or if a check remains
outstanding for six months, each fund reserves the right to reinvest the amount
of the distribution check in your account, at the fund’s then-current NAV per
share, and to reinvest all subsequent distributions. If you wish to change your
distribution option, write or call the funds at 800.421.4184. Changes should be
submitted five days prior to the record date of the next distribution.
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rjinvestmentmanagement.com | 155 |
Account
and Transaction Policies
In
general, redeeming or exchanging shares and receiving distributions (whether
reinvested or taken in cash) are all taxable events. Fund transactions typically
are treated for federal income tax purposes as follows:
|
| |
Type of
transactions |
|
Federal
income tax status |
Income dividends |
|
Ordinary income; all or part may
be eligible for 15%/20% maximum rates for non‑corporate
shareholders |
Net short-term capital gain* and
foreign currency gain distributions |
|
Ordinary income |
Net capital gain** distributions |
|
Long-term capital gains; eligible
for 15%/20% maximum rates for non‑corporate shareholders |
Redemptions
or exchanges of
fund
shares owned for more than one year |
|
Long-term capital gains or losses
(rates
noted above) |
Redemptions
or exchanges of
fund
shares owned for one year
or
less |
|
Gains are taxed at the same rate
as
ordinary income; losses are
subject
to special rules |
*The excess of net short-term capital gain over net
long-term capital loss.
**The excess of net long-term capital gain over net
short-term capital loss.
An
individual must pay a 3.8% tax on the lesser of (1) the individual’s “net
investment income,” which generally includes dividends and other distributions a
fund pays and net gains realized on a redemption or exchange of a fund’s shares,
or (2) the excess of the individual’s “modified adjusted gross income” over
a threshold amount ($250,000 for married persons filing jointly and $200,000 for
single taxpayers). This tax is in addition to any other taxes due on that
income. A similar tax applies to estates and trusts. Shareholders should consult
their own tax advisors regarding the effect, if any, this provision may have on
their investment in a fund (or funds).
Withholding taxes | If you are a non‑corporate
shareholder and a fund does not have your correct Social Security or other
taxpayer identification number, federal law requires us to withhold and pay to
the Internal Revenue Service (“IRS”) 24% of the distributions and redemption
proceeds (regardless of the extent to which you realize a gain or loss)
otherwise payable to you. If you are subject to backup withholding for any other
reason, we also must withhold and pay to the IRS 24% of the distributions
otherwise payable to you. Any tax withheld may be applied against the federal
income tax liability on your tax return. State law may also require us to
withhold and pay to your state of residence a portion of your distributions and
redemption proceeds.
Tax reporting | If your account receives
distributions or has withholding or other activity required to be reported to
the IRS, we will send you the appropriate tax form that reflects the amount and
tax status of that activity. Such tax forms will be mailed early in each year
for the prior calendar year in accordance with IRS guidelines. To enroll in
eDelivery of tax forms, visit our website, rjinvestmentmanagement.com. Certain
investors, depending on their financial intermediary, may be ineligible to
receive tax forms via eDelivery.
Each
fund is required to report annually to both shareholders and the IRS basis
information of fund shares acquired after December 31, 2011 (“Covered
Shares”). Each fund will compute the basis of your redeemed or exchanged Covered
Shares using the average basis method, which is each fund’s “default method,”
unless you contact the fund to select a different IRS‑accepted method (such as a
specific identification method) at the time of each redemption or exchange,
which you may not change after the settlement date thereof. If your account is
held by your financial adviser or other broker-dealer, that firm may select a
different default method; in such a case, please contact that firm to obtain
information with respect to the available methods and elections for your account
with it. You should carefully review the basis information provided by each fund
or your financial adviser or other broker-dealer and make any basis, holding
period or other adjustments that are required when reporting these amounts on
your income tax returns.
Because
everyone’s tax situation is unique, always consult your tax professional about
federal, state and local tax consequences.
Additional
Information
The
Board oversees generally the operations of the funds. The Trust enters into
contractual arrangements with various parties, including among others, the
funds’ manager, subadvisers, custodian, transfer agent, and accountants, who
provide services to the funds. Shareholders are not parties to any such
contractual arrangements or intended beneficiaries of those contractual
arrangements, and those contractual arrangements are not intended to create in
any shareholder any right to enforce them directly against the service providers
or to seek any remedy under them directly against the service providers.
|
| |
156 | rjinvestmentmanagement.com |
|
|
Account
and Transaction Policies
This
Prospectus provides information concerning the funds that you should consider in
determining whether to purchase fund shares. Neither this Prospectus nor the
Statement of Additional Information is intended, or should be read, to be or
give rise to an agreement or contract between the Trust or the funds and any
investor, or to give rise to any rights in any shareholder or other person other
than any rights under federal or state law that may not be waived. Nothing in
this Prospectus, the Statement of Additional Information or the funds’ reports
to shareholders is intended to provide investment advice and should not be
construed as investment advice.
|
| |
| |
rjinvestmentmanagement.com | 157 |
Carillon
Mutual Funds
Description
of Indices
The Bloomberg Intermediate US Government/Credit
Index tracks the performance of intermediate term U.S. government and
corporate bonds.
The Bloomberg U.S. Aggregate Bond Index is a
broad-based benchmark that measures the investment grade, US dollar-denominated,
fixed-rate taxable bond market. The returns of the index do not include the
effect of any sales charges. That means that actual returns would be lower if
they included the effect of sales charges.
The Bloomberg U.S. TIPS Index is a
market-value-weighted index that measures the performance of U.S. Treasury
Inflation Protected Securities (“TIPS”). This index tracks the performance of
U.S. TIPS, which are designed to protect investors from inflation by adjusting
their principal value in response to changes in the Consumer Price Index
(CPI).
The ICE BofA 1-3 Year BB US Cash Pay High Yield
Index is a subset of the ICE BofA U.S. Cash Pay High Yield Index
including all securities with a remaining term to final maturity less than 3
years and rated BB1 through BB3, inclusive.
The ICE BofA US 3-Month Treasury Index measures
the performance of a single issue of outstanding treasury bill which matures
closest to, but not beyond, three months from the rebalancing date. The issue is
purchased at the beginning of the month and held for a full month; at the end of
the month that issue is sold and rolled into a newly selected issue.
The MSCI ACWI ex-US Index is a float-adjusted
market capitalization index that is designed to measure the combined equity
market performance of large- and mid-cap securities in developed and emerging
market countries excluding the United States.
The Russell 1000® Growth Index measures the performance of the
large‑cap growth segment of the U.S. equity universe. It includes those Russell
1000 Index companies with higher price‑to‑book ratios and higher forecasted
growth values. Its returns do not include the effect of any sales charges. That
means that actual returns would be lower if they included the effect of sales
charges.
The Russell 2000® Growth Index measures the performance of the
small‑cap growth segment of the U.S. equity universe. It includes those Russell
2000 Index companies with higher price‑to‑value ratios and higher forecasted
growth values. Its returns do not include the effect of any sales charges. That
means that actual returns would be lower if they included the effect of sales
charges.
The Russell 2000® Value Index measures
the performance of the small-cap value segment of the US equity universe. It
includes those Russell 2000 companies with relatively lower price-to-book
ratios, lower I/B/E/S forecasted medium term (2 year) growth and lower sales per
share historical growth (5 years).
The Russell Midcap® Index measures the performance of the mid‑cap
segment of the U.S. equity universe. The Russell Midcap is a subset of the
Russell 1000® Index. It
includes approximately 800 of the smallest securities based on a combination of
their market cap and current index membership. Its returns do not include the
effect of any sales charges. That means that actual returns would be lower if
they included the effect of sales charges.
The Russell Midcap® Growth Index measures the performance of the
mid‑cap growth segment of the U.S. equity universe. It includes those Russell
Midcap Index companies with higher price‑to‑book ratios and higher forecasted
growth values. Its returns do not include the effect of any sales charges. That
means that actual returns would be lower if they included the effect of sales
charges.
The Russell Midcap® Value Index measures
the performance of the mid-cap value segment of the US equity universe. It
includes those Russell Midcap Index companies with relatively lower
price-to-book ratios, lower I/B/E/S forecasted medium term (2 year) growth and
lower sales per share historical growth (5 years).
The S&P 500® Index is an unmanaged index of 500 U.S. stocks
and gives a broad look at how stock prices have performed. The index includes
500 leading companies and captures approximately 80% coverage of available
market capitalization. Its returns do not include the effect of any sales
charges. That means that actual returns would be lower if they included the
effect of sales charges.
|
| |
158 | rjinvestmentmanagement.com |
|
|
Carillon
Mutual Funds
Fund
Symbols, CUSIPs and Codes
|
|
|
|
|
|
|
| |
Fund |
|
Class |
|
Symbol |
|
CUSIP |
|
Fund Code |
|
|
|
| |
Carillon Chartwell Mid Cap Value Fund |
|
A |
|
BERAX |
|
14214M393 |
|
5923 |
|
|
C |
|
BERBX |
|
14214M385 |
|
5924 |
|
|
I |
|
BERCX |
|
16140T301 |
|
5758 |
|
|
R‑6 |
|
BERDX |
|
14214M377 |
|
5925 |
Carillon Chartwell Small Cap Growth
Fund |
|
A |
|
CWSAX |
|
14214M369 |
|
5926 |
|
|
C |
|
CWSBX |
|
14214M351 |
|
5927 |
|
|
I |
|
CWSGX |
|
16140T608 |
|
5762 |
|
|
R‑6 |
|
CWSRX |
|
14214M344 |
|
5928 |
Carillon Chartwell Small Cap Value
Fund |
|
A |
|
CWSCX |
|
14214M336 |
|
5920 |
|
|
C |
|
CWSHX |
|
14214M328 |
|
5921 |
|
|
I |
|
CWSIX |
|
16140T509 |
|
5763 |
|
|
R‑6 |
|
CWSWX |
|
14214M310 |
|
5922 |
Carillon ClariVest Capital Appreciation
Fund |
|
A |
|
HRCPX |
|
14214L106 |
|
3850 |
|
|
C |
|
HRCCX |
|
14214L205 |
|
3851 |
|
|
I |
|
HRCIX |
|
14214L304 |
|
3852 |
|
|
R-6 |
|
HRCUX |
|
14214L601 |
|
3855 |
Carillon ClariVest International Stock
Fund |
|
A |
|
EISAX |
|
14214L825 |
|
3946 |
|
|
C |
|
EISDX |
|
14214L817 |
|
3947 |
|
|
I |
|
EISIX |
|
14214L791 |
|
3948 |
|
|
R-6 |
|
EISVX |
|
14214L767 |
|
3951 |
Carillon Eagle Growth & Income
Fund |
|
A |
|
HRCVX |
|
14214L809 |
|
3868 |
|
|
C |
|
HIGCX |
|
14214L882 |
|
3869 |
|
|
I |
|
HIGJX |
|
14214L874 |
|
3870 |
|
|
R‑6 |
|
HIGUX |
|
14214L841 |
|
3873 |
Carillon Eagle Mid Cap Growth Fund |
|
A |
|
HAGAX |
|
14214L668 |
|
3904 |
|
|
C |
|
HAGCX |
|
14214L650 |
|
3905 |
|
|
I |
|
HAGIX |
|
14214L643 |
|
3906 |
|
|
R‑6 |
|
HRAUX |
|
14214L619 |
|
3909 |
Carillon Eagle Small Cap Growth Fund |
|
A |
|
HRSCX |
|
14214L510 |
|
3931 |
|
|
C |
|
HSCCX |
|
14214L494 |
|
3932 |
|
|
I |
|
HSIIX |
|
14214L486 |
|
3933 |
|
|
R‑6 |
|
HSRUX |
|
14214L452 |
|
3936 |
|
|
|
|
|
|
|
| |
Fund |
|
Class |
|
Symbol |
|
CUSIP |
|
Fund Code |
|
|
|
| |
Carillon Scout Mid Cap Fund |
|
A |
|
CSMEX |
|
14214M807 |
|
4142 |
|
|
C |
|
CSMFX |
|
14214M880 |
|
4143 |
|
|
I |
|
UMBMX |
|
14214M872 |
|
4064 |
|
|
R‑6 |
|
CSMUX |
|
14214M849 |
|
4146 |
Carillon Scout Small Cap Fund |
|
A |
|
CSSAX |
|
14214M823 |
|
4148 |
|
|
C |
|
CSSJX |
|
14214M815 |
|
4149 |
|
|
I |
|
UMBHX |
|
14214M799 |
|
4065 |
|
|
R‑6 |
|
CSSVX |
|
14214M765 |
|
4152 |
Carillon Chartwell Real Income Fund |
|
A |
|
BERGX |
|
14214M468 |
|
5929 |
|
|
C |
|
BERHX |
|
14214M450 |
|
5930 |
|
|
I |
|
BERIX |
|
16140T202 |
|
5759 |
|
|
R‑6 |
|
BERSX |
|
14214M443 |
|
5931 |
Carillon Chartwell Short Duration High
Yield Fund |
|
A |
|
CWFAX |
|
14214M435 |
|
5916 |
|
|
C |
|
CWFCX |
|
14214M427 |
|
5917 |
|
|
I |
|
CWFIX |
|
16140T400 |
|
5761 |
|
|
R‑6 |
|
CWFRX |
|
14214M419 |
|
5918 |
Carillon Reams Core Bond Fund |
|
A |
|
CRCBX |
|
14214L270 |
|
4160 |
|
|
C |
|
CRCDX |
|
14214L262 |
|
4161 |
|
|
I |
|
SCCIX |
|
14214L254 |
|
4067 |
|
|
R‑6 |
|
CRCUX |
|
14214L221 |
|
4164 |
Carillon Reams Core Plus Bond Fund |
|
A |
|
SCPDX |
|
14214M666 |
|
4165 |
|
|
C |
|
SCPEX |
|
14214M658 |
|
4166 |
|
|
I |
|
SCPZX |
|
14214M641 |
|
4069 |
|
|
R‑6 |
|
SCPWX |
|
14214M617 |
|
4169 |
Carillon Reams Unconstrained Bond Fund |
|
A |
|
SUBDX |
|
14214M740 |
|
4170 |
|
|
C |
|
SUBEX |
|
14214M732 |
|
4171 |
|
|
I |
|
SUBFX |
|
14214M724 |
|
4071 |
|
|
R‑6 |
|
SUBTX |
|
14214M682 |
|
4174 |
|
| |
| |
rjinvestmentmanagement.com | 159 |
Financial
Highlights
PROSPECTUS | 4.26.2024
The
financial highlights table is intended to help you understand the performance of
each class of fund shares for the periods indicated. Certain information
reflects financial results for a single Class A, Class C, Class I, or Class
R-6 share. Prior to April 26, 2024, the Class I shares of the Carillon Chartwell
Mid Cap Value Fund, Carillon Chartwell Small Cap Growth Fund, Carillon Chartwell
Small Cap Value Fund, Carillon Chartwell Real Income Fund and Carillon Chartwell
Short Duration High Yield Fund were designated as Class Chartwell shares.
Effective on or about the close of business on March 1, 2024, for the Carillon
ClariVest Capital Appreciation Fund, Carillon ClariVest International Stock
Fund, Carillon Eagle Growth & Income Fund, Carillon Eagle Mid Cap Growth
Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout Mid Cap Fund,
Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund, Carillon Reams
Core Plus Bond Fund and Carillon Reams Unconstrained Bond Fund, Class Y shares
were combined into Class A shares, and Class R-3 and Class R-5 shares were
combined into Class I shares.
Based
upon the commencement of operations for some of the fund and/or share classes,
there may be less than five years’ worth of financial information available. The
total returns in the table represent the rate that an investor would have earned
or lost on an investment in the fund (assuming reinvestment of all dividends and
other distributions). This table is a part of the fund’s financial statements,
which are included in the annual report and semi-annual reports for Carillon
Series Trust, and are incorporated by reference into the Statement of Additional
Information (available on our website and upon request).
For
the Carillon Chartwell Mid Cap Value Fund, Carillon Chartwell Small Cap Growth
Fund, Carillon Chartwell Small Cap Value Fund, Carillon Chartwell Real Income
Fund and Carillon Chartwell Short Duration High Yield Fund (the “Carillon
Chartwell Funds”), the financial statements in the annual report were audited by
Cohen & Company, Ltd., an independent registered public accounting firm,
whose report is included in the funds’ annual report. The financial information
for the Carillon Chartwell Funds for the fiscal years ended October 31, 2019 and
October 31, 2020, for the fiscal period ended December 31, 2020, and for the
fiscal years ended December 31, 2021 and December 31, 2022 was audited by the
prior independent registered public accounting firm for the funds or a Chartwell
Predecessor Fund (as defined below). Each Chartwell Predecessor Fund is the
accounting and tax survivor as a result of the reorganizations. Accordingly, the
financial highlights of each fund through June 30, 2022 represents the financial
history of the corresponding Chartwell Predecessor Fund. Prior to the
reorganizations, no fund had any investment operations. As of the date of this
prospectus, Class A, Class C and Class R-6 shares for each of the Carillon
Chartwell Funds had not commenced operations; accordingly, financial highlights
for those classes are not included.
For
the Carillon ClariVest Capital Appreciation Fund, Carillon ClariVest
International Stock Fund, Carillon Eagle Growth & Income Fund, Carillon
Eagle Mid Cap Growth Fund, Carillon Eagle Small Cap Growth Fund, Carillon Scout
Mid Cap Fund, Carillon Scout Small Cap Fund, Carillon Reams Core Bond Fund,
Carillon Reams Core Plus Bond Fund and Carillon Reams Unconstrained Bond Fund,
the financial statements in the annual report were audited by
PricewaterhouseCoopers LLP, (“PwC”), an independent registered public accounting
firm, whose report is included in the funds’ annual report.
Per
share data for a share outstanding throughout each year/period
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Fiscal
period |
|
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From investment operations |
|
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Dividends &
distributions |
|
|
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|
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Ratios
to average net asset (%) |
|
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|
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Beginning net
asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
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From realized gains |
|
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Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (thousands) |
|
Beginning |
|
Ending |
|
Carillon Chartwell Real Income
Fund* (formerly, Carillon Chartwell Income Fund) |
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01/01/23 |
|
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12/31/23 |
|
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$12.29 |
|
|
|
$0.42 |
|
|
|
$0.52 |
|
|
|
$0.94 |
|
|
|
|
| |
|
$(0.43) |
|
|
|
$— |
|
|
|
$(0.43) |
|
|
|
$12.80 |
|
|
|
0.64 |
|
|
|
0.73 |
|
|
|
3.35 |
|
|
|
59 |
|
|
|
7.77 |
|
|
|
$307,898 |
|
01/01/22 |
|
|
12/31/22 |
|
|
|
14.15 |
|
|
|
0.38 |
|
|
|
(1.80) |
|
|
|
(1.42) |
|
|
|
|
| |
|
(0.39) |
|
|
|
(0.05) |
|
|
|
(0.44) |
|
|
|
12.29 |
|
|
|
0.64 |
|
|
|
0.69 |
|
|
|
2.87 |
|
|
|
40 |
|
|
|
(10.14) |
|
|
|
366,987 |
|
01/01/21 |
|
|
12/31/21 |
|
|
|
13.53 |
|
|
|
0.34 |
|
|
|
0.65 |
|
|
|
0.99 |
|
|
|
|
| |
|
(0.37) |
|
|
|
— |
|
|
|
(0.37) |
|
|
|
14.15 |
|
|
|
0.64 |
|
|
|
0.68 |
|
|
|
2.41 |
|
|
|
56 |
|
|
|
7.35 |
|
|
|
520,177 |
|
11/01/20 |
|
|
12/31/20 |
^ |
|
|
12.72 |
|
|
|
0.07 |
|
|
|
0.81 |
|
|
|
0.88 |
|
|
|
|
| |
|
(0.07) |
|
|
|
— |
|
|
|
(0.07) |
|
|
|
13.53 |
|
|
|
0.64 |
|
|
|
0.73 |
|
|
|
2.93 |
|
|
|
7 |
|
|
|
6.93 |
|
|
|
556,850 |
|
11/01/19 |
|
|
10/31/20 |
|
|
|
13.26 |
|
|
|
0.40 |
|
|
|
(0.52) |
|
|
|
(0.12) |
|
|
|
|
| |
|
(0.42) |
|
|
|
— |
|
|
|
(0.42) |
|
|
|
12.72 |
|
|
|
0.64 |
|
|
|
0.67 |
|
|
|
3.08 |
|
|
|
63 |
|
|
|
(0.83) |
|
|
|
568,025 |
|
11/01/18 |
|
|
10/31/19 |
|
|
|
13.18 |
|
|
|
0.41 |
|
|
|
0.50 |
|
|
|
0.91 |
|
|
|
|
| |
|
(0.44) |
|
|
|
(0.39) |
|
|
|
(0.83) |
|
|
|
13.26 |
|
|
|
0.64 |
|
|
|
0.66 |
|
|
|
2.95 |
|
|
|
137 |
|
|
|
7.22 |
|
|
|
1,030,248 |
|
Carillon Chartwell Mid Cap Value Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/01/23 |
|
|
12/31/23 |
|
|
|
16.50 |
|
|
|
0.07 |
|
|
|
1.07 |
|
|
|
1.14 |
|
|
|
|
| |
|
(0.13) |
|
|
|
(0.42) |
|
|
|
(0.55) |
|
|
|
17.09 |
|
|
|
0.90 |
|
|
|
1.49 |
|
|
|
0.40 |
|
|
|
33 |
|
|
|
6.90 |
|
|
|
23,787 |
|
01/01/22 |
|
|
12/31/22 |
|
|
|
18.88 |
|
|
|
0.19 |
|
|
|
(2.38) |
|
|
|
(2.19) |
|
|
|
|
| |
|
(0.18) |
|
|
|
(0.01) |
|
|
|
(0.19) |
|
|
|
16.50 |
|
|
|
0.90 |
|
|
|
1.29 |
|
|
|
1.15 |
|
|
|
27 |
|
|
|
(11.63) |
|
|
|
40,877 |
|
01/01/21 |
|
|
12/31/21 |
|
|
|
14.92 |
|
|
|
0.11 |
|
|
|
3.96 |
|
|
|
4.07 |
|
|
|
|
| |
|
(0.11) |
|
|
|
— |
|
|
|
(0.11) |
|
|
|
18.88 |
|
|
|
0.90 |
|
|
|
1.29 |
|
|
|
0.68 |
|
|
|
15 |
|
|
|
27.30 |
|
|
|
38,467 |
|
11/01/20 |
|
|
12/31/20 |
^ |
|
|
13.12 |
|
|
|
0.03 |
|
|
|
1.94 |
|
|
|
1.97 |
|
|
|
|
| |
|
(0.17) |
|
|
|
— |
|
|
|
(0.17) |
|
|
|
14.92 |
|
|
|
0.90 |
|
|
|
1.56 |
|
|
|
1.25 |
|
|
|
3 |
|
|
|
15.00 |
|
|
|
28,540 |
|
11/01/19 |
|
|
10/31/20 |
|
|
|
15.54 |
|
|
|
0.19 |
|
|
|
(2.28) |
|
|
|
(2.09) |
|
|
|
|
| |
|
(0.18) |
|
|
|
(0.15) |
|
|
|
(0.33) |
|
|
|
13.12 |
|
|
|
0.90 |
|
|
|
1.47 |
|
|
|
1.40 |
|
|
|
35 |
|
|
|
(13.81) |
|
|
|
24,752 |
|
11/01/18 |
|
|
10/31/19 |
|
|
|
15.07 |
|
|
|
0.17 |
|
|
|
1.34 |
|
|
|
1.51 |
|
|
|
|
| |
|
(0.11) |
|
|
|
(0.93) |
|
|
|
(1.04) |
|
|
|
15.54 |
|
|
|
1.02 |
~ |
|
|
1.44 |
|
|
|
1.09 |
~ |
|
|
36 |
|
|
|
11.47 |
|
|
|
25,704 |
|
Carillon Chartwell Small Cap Value
Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/01/23 |
|
|
12/31/23 |
|
|
|
17.75 |
|
|
|
0.09 |
|
|
|
2.09 |
|
|
|
2.18 |
|
|
|
|
| |
|
(0.21) |
|
|
|
(0.45) |
|
|
|
(0.66) |
|
|
|
19.27 |
|
|
|
1.05 |
|
|
|
1.26 |
|
|
|
0.48 |
|
|
|
27 |
|
|
|
12.30 |
|
|
|
143,320 |
|
01/01/22 |
|
|
12/31/22 |
|
|
|
19.90 |
|
|
|
0.10 |
|
|
|
(2.04) |
|
|
|
(1.94) |
|
|
|
|
| |
|
— |
|
|
|
(0.21) |
|
|
|
(0.21) |
|
|
|
17.75 |
|
|
|
1.05 |
|
|
|
1.17 |
|
|
|
0.54 |
|
|
|
24 |
|
|
|
(9.71) |
|
|
|
149,898 |
|
01/01/21 |
|
|
12/31/21 |
|
|
|
17.75 |
|
|
|
0.10 |
|
|
|
4.16 |
|
|
|
4.26 |
|
|
|
|
| |
|
(0.10) |
|
|
|
(2.01) |
|
|
|
(2.11) |
|
|
|
19.90 |
|
|
|
1.05 |
|
|
|
1.15 |
|
|
|
0.45 |
|
|
|
20 |
|
|
|
24.42 |
|
|
|
182,868 |
|
11/01/20 |
|
|
12/31/20 |
^ |
|
|
14.75 |
|
|
|
0.04 |
|
|
|
3.09 |
|
|
|
3.13 |
|
|
|
|
| |
|
(0.13) |
|
|
|
— |
|
|
|
(0.13) |
|
|
|
17.75 |
|
|
|
1.05 |
|
|
|
1.21 |
|
|
|
1.32 |
|
|
|
2 |
|
|
|
21.23 |
|
|
|
177,334 |
|
11/01/19 |
|
|
10/31/20 |
|
|
|
18.67 |
|
|
|
0.13 |
|
|
|
(3.37) |
|
|
|
(3.24) |
|
|
|
|
| |
|
(0.14) |
|
|
|
(0.54) |
|
|
|
(0.68) |
|
|
|
14.75 |
|
|
|
1.05 |
|
|
|
1.18 |
|
|
|
0.81 |
|
|
|
30 |
|
|
|
(18.16) |
|
|
|
148,069 |
|
11/01/18 |
|
|
10/31/19 |
|
|
|
18.79 |
|
|
|
0.13 |
|
|
|
1.04 |
|
|
|
1.17 |
|
|
|
|
| |
|
(0.07) |
|
|
|
(1.22) |
|
|
|
(1.29) |
|
|
|
18.67 |
|
|
|
1.05 |
|
|
|
1.07 |
|
|
|
0.69 |
|
|
|
30 |
|
|
|
7.54 |
|
|
|
172,753 |
|
Carillon Chartwell Short Duration High Yield
Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/01/23 |
|
|
12/31/23 |
|
|
|
9.15 |
|
|
|
0.42 |
|
|
|
0.28 |
|
|
|
0.70 |
|
|
|
|
| |
|
(0.42) |
|
|
|
— |
|
|
|
(0.42) |
|
|
|
9.43 |
|
|
|
0.49 |
|
|
|
0.60 |
|
|
|
4.51 |
|
|
|
39 |
|
|
|
7.80 |
|
|
|
247,272 |
|
01/01/22 |
|
|
12/31/22 |
|
|
|
9.75 |
|
|
|
0.29 |
|
|
|
(0.60) |
|
|
|
(0.31) |
|
|
|
|
| |
|
(0.29) |
|
|
|
— |
|
|
|
(0.29) |
|
|
|
9.15 |
|
|
|
0.49 |
|
|
|
0.59 |
|
|
|
3.09 |
|
|
|
35 |
|
|
|
(3.17) |
|
|
|
209,672 |
|
01/01/21 |
|
|
12/31/21 |
|
|
|
9.79 |
|
|
|
0.27 |
|
|
|
(0.04) |
|
|
|
0.23 |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
9.75 |
|
|
|
0.49 |
|
|
|
0.58 |
|
|
|
2.78 |
|
|
|
54 |
|
|
|
2.40 |
|
|
|
216,879 |
|
11/01/20 |
|
|
12/31/20 |
^ |
|
|
9.59 |
|
|
|
0.05 |
|
|
|
0.20 |
|
|
|
0.25 |
|
|
|
|
| |
|
(0.05) |
|
|
|
— |
|
|
|
(0.05) |
|
|
|
9.79 |
|
|
|
0.49 |
|
|
|
0.66 |
|
|
|
3.13 |
|
|
|
9 |
|
|
|
2.63 |
|
|
|
163,703 |
|
11/01/19 |
|
|
10/31/20 |
|
|
|
9.68 |
|
|
|
0.33 |
|
|
|
(0.08) |
|
|
|
0.25 |
|
|
|
|
| |
|
(0.34) |
|
|
|
— |
|
|
|
(0.34) |
|
|
|
9.59 |
|
|
|
0.49 |
|
|
|
0.61 |
|
|
|
3.55 |
|
|
|
63 |
|
|
|
2.62 |
|
|
|
161,474 |
|
11/01/18 |
|
|
10/31/19 |
|
|
|
9.48 |
|
|
|
0.35 |
|
|
|
0.20 |
|
|
|
0.55 |
|
|
|
|
| |
|
(0.35) |
|
|
|
— |
|
|
|
(0.35) |
|
|
|
9.68 |
|
|
|
0.49 |
|
|
|
0.67 |
|
|
|
3.62 |
|
|
|
41 |
|
|
|
5.89 |
|
|
|
91,914 |
|
Carillon Chartwell Small Cap Growth
Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/01/23 |
|
|
12/31/23 |
|
|
|
10.80 |
|
|
|
(0.02) |
|
|
|
2.44 |
|
|
|
2.42 |
|
|
|
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.22 |
|
|
|
1.05 |
|
|
|
2.39 |
|
|
|
(0.20) |
|
|
|
72 |
|
|
|
22.41 |
|
|
|
16,725 |
|
01/01/22 |
|
|
12/31/22 |
|
|
|
16.36 |
|
|
|
(0.08) |
|
|
|
(4.96) |
|
|
|
(5.04) |
|
|
|
|
| |
|
— |
|
|
|
(0.52) |
|
|
|
(0.52) |
|
|
|
10.80 |
|
|
|
1.05 |
|
|
|
1.82 |
|
|
|
(0.54) |
|
|
|
80 |
|
|
|
(30.83) |
|
|
|
16,303 |
|
01/01/21 |
|
|
12/31/21 |
|
|
|
17.29 |
|
|
|
(0.15) |
|
|
|
2.78 |
|
|
|
2.63 |
|
|
|
|
| |
|
(0.01) |
|
|
|
(3.55) |
|
|
|
(3.56) |
|
|
|
16.36 |
|
|
|
1.05 |
|
|
|
1.47 |
|
|
|
(0.88) |
|
|
|
61 |
|
|
|
16.47 |
|
|
|
28,330 |
|
11/01/20 |
|
|
12/31/20 |
^ |
|
|
15.22 |
|
|
|
(0.01) |
|
|
|
3.24 |
|
|
|
3.23 |
|
|
|
|
| |
|
— |
|
|
|
(1.16) |
|
|
|
(1.16) |
|
|
|
17.29 |
|
|
|
1.05 |
|
|
|
1.76 |
|
|
|
(0.58) |
|
|
|
24 |
|
|
|
21.20 |
|
|
|
27,436 |
|
11/01/19 |
|
|
10/31/20 |
|
|
|
11.78 |
|
|
|
(0.09) |
|
|
|
3.53 |
|
|
|
3.44 |
|
|
|
|
| |
|
— |
|
|
|
(0.00) |
+ |
|
|
(0.00) |
+ |
|
|
15.22 |
|
|
|
1.05 |
|
|
|
1.73 |
|
|
|
(0.56) |
|
|
|
104 |
|
|
|
29.25 |
|
|
|
22,808 |
|
11/01/18 |
|
|
10/31/19 |
|
|
|
11.55 |
|
|
|
(0.04) |
|
|
|
0.32 |
|
|
|
0.28 |
|
|
|
|
| |
|
— |
|
|
|
(0.05) |
|
|
|
(0.05) |
|
|
|
11.78 |
|
|
|
1.05 |
|
|
|
1.64 |
|
|
|
(0.39) |
|
|
|
104 |
|
|
|
2.46 |
|
|
|
20,637 |
|
* Per share amounts have been calculated using the
daily average share method. Redemption fees of less than $0.005/share are
included with Realized & unrealized gain (loss) from investment
operations. Funds with less than five years of financial highlights shown are
showing the financial highlights for the entire history of the Fund.
^ Fund changed fiscal year to December 31.
+ Amount distributed was less than $0.005/share.
~ Effective September 1, 2019, the Advisor
contractually agreed to reduce its fees and/or reimburse other operating
expenses of the Fund to ensure that total annual operating expenses do not
exceed 0.90% of the average daily net assets of the Fund. Prior to September 1,
2019, the annual operating expense limitation was 1.05%
(a) Annualized for periods less than one year.
(b) Not annualized for periods less than one year.
(c) Total return is a measure of the change in value
of an investment in the Fund over the period covered, which assumes any
dividends or capital gains distributions are reinvested in shares of the Fund.
The returns shown do not reflect the deduction of taxes a shareholder would pay
on Fund distributions or the redemption of Fund shares. The total returns would
have been lower had the Adviser not reduced its fees or reimbursed expenses.
|
| |
160 | rjinvestmentmanagement.com |
|
|
Financial
Highlights
PROSPECTUS | 4.26.2024
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Fiscal
period |
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From investment operations |
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Dividends &
distributions |
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|
|
Ratios
to average net asset (%) |
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|
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Beginning net asset value |
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Income (loss) |
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Realized & unrealized gain
(loss) |
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Total |
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From investment income |
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From realized gains |
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Total |
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Ending net asset value |
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With expenses waived/ recovered (a) |
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Without expenses waived/ recovered (a) |
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Net income (loss) (a) |
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Portfolio turnover rate (%) (b) |
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Total return (%) (b)(c) |
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Ending net assets (millions) |
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Beginning |
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Ending |
Carillon ClariVest Capital Appreciation
Fund |
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Class
A* |
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11/01/23 |
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12/31/23 |
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$44.17 |
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$(0.01) |
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$6.60 |
|
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$6.59 |
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|
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| |
|
$— |
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|
$(5.34) |
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|
$(5.34) |
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|
$45.42 |
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|
1.00 |
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1.21 |
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(0.12) |
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4 |
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|
14.87 |
|
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$181 |
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11/01/22 |
|
10/31/23 |
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|
46.16 |
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|
(0.07) |
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|
5.83 |
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|
5.76 |
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|
|
| |
|
— |
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|
(7.75) |
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|
|
(7.75) |
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|
44.17 |
|
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|
1.00 |
|
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|
1.16 |
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(0.16) |
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|
31 |
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15.90 |
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|
161 |
|
11/01/21 |
|
10/31/22 |
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|
64.23 |
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(0.07) |
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(13.68) |
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(13.75) |
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| |
|
— |
|
|
|
(4.32) |
|
|
|
(4.32) |
|
|
|
46.16 |
|
|
|
1.00 |
|
|
|
1.13 |
|
|
|
(0.13) |
|
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|
31 |
|
|
|
(22.87) |
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|
|
156 |
|
11/01/20 |
|
10/31/21 |
|
|
51.65 |
|
|
|
(0.08) |
|
|
|
20.42 |
|
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|
20.34 |
|
|
|
|
| |
|
(0.05) |
|
|
|
(7.71) |
|
|
|
(7.76) |
|
|
|
64.23 |
|
|
|
1.00 |
|
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|
1.11 |
|
|
|
(0.14) |
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|
20 |
|
|
|
43.42 |
|
|
|
222 |
|
11/01/19 |
|
10/31/20 |
|
|
43.14 |
|
|
|
0.04 |
|
|
|
9.19 |
|
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|
9.23 |
|
|
|
|
| |
|
(0.13) |
|
|
|
(0.59) |
|
|
|
(0.72) |
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|
51.65 |
|
|
|
1.00 |
|
|
|
1.15 |
|
|
|
0.08 |
|
|
|
31 |
|
|
|
21.63 |
|
|
|
170 |
|
11/01/18 |
|
10/31/19 |
|
|
42.91 |
|
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|
0.14 |
|
|
|
3.75 |
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|
3.89 |
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| |
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(0.06) |
|
|
|
(3.60) |
|
|
|
(3.66) |
|
|
|
43.14 |
|
|
|
1.00 |
|
|
|
1.14 |
|
|
|
0.34 |
|
|
|
49 |
|
|
|
11.23 |
|
|
|
170 |
|
Class
C* |
|
| |
|
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| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
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| |
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| |
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| |
|
|
| |
|
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| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
22.68 |
|
|
|
(0.04) |
|
|
|
3.39 |
|
|
|
3.35 |
|
|
|
|
| |
|
— |
|
|
|
(2.74) |
|
|
|
(2.74) |
|
|
|
23.29 |
|
|
|
1.75 |
|
|
|
1.95 |
|
|
|
(0.87) |
|
|
|
4 |
|
|
|
14.71 |
|
|
|
8 |
|
11/01/22 |
|
10/31/23 |
|
|
27.77 |
|
|
|
(0.20) |
|
|
|
2.86 |
|
|
|
2.66 |
|
|
|
|
| |
|
— |
|
|
|
(7.75) |
|
|
|
(7.75) |
|
|
|
22.68 |
|
|
|
1.75 |
|
|
|
1.89 |
|
|
|
(0.90) |
|
|
|
31 |
|
|
|
15.05 |
|
|
|
7 |
|
11/01/21 |
|
10/31/22 |
|
|
40.66 |
|
|
|
(0.29) |
|
|
|
(8.28) |
|
|
|
(8.57) |
|
|
|
|
| |
|
— |
|
|
|
(4.32) |
|
|
|
(4.32) |
|
|
|
27.77 |
|
|
|
1.75 |
|
|
|
1.86 |
|
|
|
(0.88) |
|
|
|
31 |
|
|
|
(23.45) |
|
|
|
9 |
|
11/01/20 |
|
10/31/21 |
|
|
35.39 |
|
|
|
(0.32) |
|
|
|
13.30 |
|
|
|
12.98 |
|
|
|
|
| |
|
— |
|
|
|
(7.71) |
|
|
|
(7.71) |
|
|
|
40.66 |
|
|
|
1.75 |
|
|
|
1.86 |
|
|
|
(0.89) |
|
|
|
20 |
|
|
|
42.34 |
|
|
|
14 |
|
11/01/19 |
|
10/31/20 |
|
|
29.87 |
|
|
|
(0.21) |
|
|
|
6.32 |
|
|
|
6.11 |
|
|
|
|
| |
|
— |
|
|
|
(0.59) |
|
|
|
(0.59) |
|
|
|
35.39 |
|
|
|
1.75 |
|
|
|
1.89 |
|
|
|
(0.66) |
|
|
|
31 |
|
|
|
20.71 |
|
|
|
13 |
|
11/01/18 |
|
10/31/19 |
|
|
31.12 |
|
|
|
(0.11) |
|
|
|
2.46 |
|
|
|
2.35 |
|
|
|
|
| |
|
— |
|
|
|
(3.60) |
|
|
|
(3.60) |
|
|
|
29.87 |
|
|
|
1.75 |
|
|
|
1.90 |
|
|
|
(0.39) |
|
|
|
49 |
|
|
|
10.38 |
|
|
|
15 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
48.17 |
|
|
|
0.02 |
|
|
|
7.20 |
|
|
|
7.22 |
|
|
|
|
| |
|
(0.00) |
|
|
|
(5.82) |
|
|
|
(5.82) |
|
|
|
49.57 |
|
|
|
0.70 |
|
|
|
0.95 |
|
|
|
0.18 |
|
|
|
4 |
|
|
|
14.96 |
|
|
|
213 |
|
11/01/22 |
|
10/31/23 |
|
|
49.55 |
|
|
|
0.07 |
|
|
|
6.36 |
|
|
|
6.43 |
|
|
|
|
| |
|
(0.06) |
|
|
|
(7.75) |
|
|
|
(7.81) |
|
|
|
48.17 |
|
|
|
0.70 |
|
|
|
0.91 |
|
|
|
0.14 |
|
|
|
31 |
|
|
|
16.24 |
|
|
|
191 |
|
11/01/21 |
|
10/31/22 |
|
|
68.46 |
|
|
|
0.10 |
|
|
|
(14.67) |
|
|
|
(14.57) |
|
|
|
|
| |
|
(0.02) |
|
|
|
(4.32) |
|
|
|
(4.34) |
|
|
|
49.55 |
|
|
|
0.70 |
|
|
|
0.88 |
|
|
|
0.18 |
|
|
|
31 |
|
|
|
(22.65) |
|
|
|
213 |
|
11/01/20 |
|
10/31/21 |
|
|
54.56 |
|
|
|
0.09 |
|
|
|
21.70 |
|
|
|
21.79 |
|
|
|
|
| |
|
(0.18) |
|
|
|
(7.71) |
|
|
|
(7.89) |
|
|
|
68.46 |
|
|
|
0.70 |
|
|
|
0.87 |
|
|
|
0.15 |
|
|
|
20 |
|
|
|
43.87 |
|
|
|
400 |
|
11/01/19 |
|
10/31/20 |
|
|
45.52 |
|
|
|
0.19 |
|
|
|
9.70 |
|
|
|
9.89 |
|
|
|
|
| |
|
(0.26) |
|
|
|
(0.59) |
|
|
|
(0.85) |
|
|
|
54.56 |
|
|
|
0.70 |
|
|
|
0.89 |
|
|
|
0.39 |
|
|
|
31 |
|
|
|
22.00 |
|
|
|
276 |
|
11/01/18 |
|
10/31/19 |
|
|
45.09 |
|
|
|
0.26 |
|
|
|
3.97 |
|
|
|
4.23 |
|
|
|
|
| |
|
(0.20) |
|
|
|
(3.60) |
|
|
|
(3.80) |
|
|
|
45.52 |
|
|
|
0.70 |
|
|
|
0.90 |
|
|
|
0.61 |
|
|
|
49 |
|
|
|
11.54 |
|
|
|
314 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
47.09 |
|
|
|
0.02 |
|
|
|
7.04 |
|
|
|
7.06 |
|
|
|
|
| |
|
— |
|
|
|
(5.69) |
|
|
|
(5.69) |
|
|
|
48.46 |
|
|
|
0.60 |
|
|
|
0.88 |
|
|
|
0.28 |
|
|
|
4 |
|
|
|
14.96 |
|
|
|
0 |
|
11/01/22 |
|
10/31/23 |
|
|
49.31 |
|
|
|
0.08 |
|
|
|
6.23 |
|
|
|
6.31 |
|
|
|
|
| |
|
(0.78) |
|
|
|
(7.75) |
|
|
|
(8.53) |
|
|
|
47.09 |
|
|
|
0.60 |
|
|
|
0.83 |
|
|
|
0.16 |
|
|
|
31 |
|
|
|
16.37 |
|
|
|
0 |
|
11/01/21 |
|
10/31/22 |
|
|
67.92 |
|
|
|
0.18 |
|
|
|
(14.40) |
|
|
|
(14.22) |
|
|
|
|
| |
|
(0.07) |
|
|
|
(4.32) |
|
|
|
(4.39) |
|
|
|
49.31 |
|
|
|
0.60 |
|
|
|
0.79 |
|
|
|
0.31 |
|
|
|
31 |
|
|
|
(22.31) |
|
|
|
0 |
|
11/01/20 |
|
10/31/21 |
|
|
54.19 |
|
|
|
0.15 |
|
|
|
21.52 |
|
|
|
21.67 |
|
|
|
|
| |
|
(0.23) |
|
|
|
(7.71) |
|
|
|
(7.94) |
|
|
|
67.92 |
|
|
|
0.60 |
|
|
|
0.79 |
|
|
|
0.24 |
|
|
|
20 |
|
|
|
43.99 |
|
|
|
2 |
|
11/01/19 |
|
10/31/20 |
|
|
45.16 |
|
|
|
0.44 |
|
|
|
9.48 |
|
|
|
9.92 |
|
|
|
|
| |
|
(0.30) |
|
|
|
(0.59) |
|
|
|
(0.89) |
|
|
|
54.19 |
|
|
|
0.60 |
|
|
|
0.79 |
|
|
|
0.95 |
|
|
|
31 |
|
|
|
22.26 |
|
|
|
1 |
|
11/01/18 |
|
10/31/19 |
|
|
44.77 |
|
|
|
0.31 |
|
|
|
3.93 |
|
|
|
4.24 |
|
|
|
|
| |
|
(0.25) |
|
|
|
(3.60) |
|
|
|
(3.85) |
|
|
|
45.16 |
|
|
|
0.60 |
|
|
|
0.80 |
|
|
|
0.73 |
|
|
|
49 |
|
|
|
11.67 |
|
|
|
45 |
|
|
| |
| |
rjinvestmentmanagement.com | 161 |
Financial
Highlights
PROSPECTUS | 4.26.2024
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|
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|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon ClariVest International Stock
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 18.95 |
|
|
|
$
0.04 |
|
|
|
$
2.63 |
|
|
|
$
2.67 |
|
|
|
|
| |
|
$ (0.56) |
|
|
|
$
— |
|
|
|
$ (0.56) |
|
|
|
$
21.06 |
|
|
|
1.25 |
|
|
|
1.36 |
|
|
|
1.07 |
|
|
|
7 |
|
|
|
14.11 |
|
|
|
$
4 |
|
11/01/22 |
|
10/31/23 |
|
|
16.62 |
|
|
|
0.36 |
|
|
|
2.24 |
|
|
|
2.60 |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
18.95 |
|
|
|
1.25 |
|
|
|
1.27 |
|
|
|
1.84 |
|
|
|
44 |
|
|
|
15.70 |
|
|
|
4 |
|
11/01/21 |
|
10/31/22 |
|
|
21.00 |
|
|
|
0.45 |
|
|
|
(4.52) |
|
|
|
(4.07) |
|
|
|
|
| |
|
(0.31) |
|
|
|
— |
|
|
|
(0.31) |
|
|
|
16.62 |
|
|
|
1.32 |
|
|
|
3.24 |
|
|
|
2.42 |
|
|
|
66 |
|
|
|
(19.67) |
|
|
|
4 |
|
11/01/20 |
|
10/31/21 |
|
|
15.27 |
|
|
|
0.33 |
|
|
|
5.54 |
|
|
|
5.87 |
|
|
|
|
| |
|
(0.14) |
|
|
|
— |
|
|
|
(0.14) |
|
|
|
21.00 |
|
|
|
1.45 |
|
|
|
5.16 |
|
|
|
1.66 |
|
|
|
80 |
|
|
|
38.61 |
|
|
|
4 |
|
11/01/19 |
|
10/31/20 |
|
|
17.47 |
|
|
|
0.17 |
|
|
|
(1.99) |
|
|
|
(1.82) |
|
|
|
|
| |
|
(0.38) |
|
|
|
— |
|
|
|
(0.38) |
|
|
|
15.27 |
|
|
|
1.45 |
|
|
|
4.90 |
|
|
|
1.08 |
|
|
|
54 |
|
|
|
(10.73) |
|
|
|
2 |
|
11/01/18 |
|
10/31/19 |
|
|
16.92 |
|
|
|
0.28 |
|
|
|
0.49 |
|
|
|
0.77 |
|
|
|
|
| |
|
(0.22) |
|
|
|
— |
|
|
|
(0.22) |
|
|
|
17.47 |
|
|
|
1.45 |
|
|
|
4.12 |
|
|
|
1.67 |
|
|
|
43 |
|
|
|
4.74 |
|
|
|
4 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.48 |
|
|
|
0.01 |
|
|
|
2.57 |
|
|
|
2.58 |
|
|
|
|
| |
|
(0.42) |
|
|
|
— |
|
|
|
(0.42) |
|
|
|
20.64 |
|
|
|
2.00 |
|
|
|
2.08 |
|
|
|
0.31 |
|
|
|
7 |
|
|
|
13.98 |
|
|
|
1 |
|
11/01/22 |
|
10/31/23 |
|
|
16.24 |
|
|
|
0.20 |
|
|
|
2.20 |
|
|
|
2.40 |
|
|
|
|
| |
|
(0.16) |
|
|
|
— |
|
|
|
(0.16) |
|
|
|
18.48 |
|
|
|
2.00 |
|
|
|
2.00 |
|
|
|
1.06 |
|
|
|
44 |
|
|
|
14.83 |
|
|
|
1 |
|
11/01/21 |
|
10/31/22 |
|
|
20.56 |
|
|
|
0.33 |
|
|
|
(4.46) |
|
|
|
(4.13) |
|
|
|
|
| |
|
(0.19) |
|
|
|
— |
|
|
|
(0.19) |
|
|
|
16.24 |
|
|
|
2.08 |
|
|
|
4.11 |
|
|
|
1.76 |
|
|
|
66 |
|
|
|
(20.28) |
|
|
|
1 |
|
11/01/20 |
|
10/31/21 |
|
|
14.95 |
|
|
|
0.17 |
|
|
|
5.45 |
|
|
|
5.62 |
|
|
|
|
| |
|
(0.01) |
|
|
|
— |
|
|
|
(0.01) |
|
|
|
20.56 |
|
|
|
2.20 |
|
|
|
5.90 |
|
|
|
0.90 |
|
|
|
80 |
|
|
|
37.63 |
|
|
|
2 |
|
11/01/19 |
|
10/31/20 |
|
|
17.14 |
|
|
|
0.07 |
|
|
|
(1.99) |
|
|
|
(1.92) |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
14.95 |
|
|
|
2.20 |
|
|
|
5.74 |
|
|
|
0.43 |
|
|
|
54 |
|
|
|
(11.44) |
|
|
|
1 |
|
11/01/18 |
|
10/31/19 |
|
|
16.53 |
|
|
|
0.15 |
|
|
|
0.51 |
|
|
|
0.66 |
|
|
|
|
| |
|
(0.05) |
|
|
|
— |
|
|
|
(0.05) |
|
|
|
17.14 |
|
|
|
2.20 |
|
|
|
4.91 |
|
|
|
0.90 |
|
|
|
43 |
|
|
|
4.01 |
|
|
|
2 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
19.11 |
|
|
|
0.05 |
|
|
|
2.66 |
|
|
|
2.71 |
|
|
|
|
| |
|
(0.62) |
|
|
|
— |
|
|
|
(0.62) |
|
|
|
21.20 |
|
|
|
0.95 |
|
|
|
1.11 |
|
|
|
1.37 |
|
|
|
7 |
|
|
|
14.21 |
|
|
|
340 |
|
11/01/22 |
|
10/31/23 |
|
|
16.61 |
|
|
|
0.42 |
|
|
|
2.24 |
|
|
|
2.66 |
|
|
|
|
| |
|
(0.16) |
|
|
|
— |
|
|
|
(0.16) |
|
|
|
19.11 |
|
|
|
0.95 |
|
|
|
1.03 |
|
|
|
2.14 |
|
|
|
44 |
|
|
|
16.05 |
|
|
|
308 |
|
11/01/21 |
|
10/31/22 |
|
|
20.99 |
|
|
|
0.32 |
|
|
|
(4.32) |
|
|
|
(4.00) |
|
|
|
|
| |
|
(0.38) |
|
|
|
— |
|
|
|
(0.38) |
|
|
|
16.61 |
|
|
|
0.96 |
|
|
|
1.38 |
|
|
|
1.87 |
|
|
|
66 |
|
|
|
(19.44) |
|
|
|
309 |
|
11/01/20 |
|
10/31/21 |
|
|
15.26 |
|
|
|
0.38 |
|
|
|
5.55 |
|
|
|
5.93 |
|
|
|
|
| |
|
(0.20) |
|
|
|
— |
|
|
|
(0.20) |
|
|
|
20.99 |
|
|
|
1.15 |
|
|
|
4.90 |
|
|
|
1.95 |
|
|
|
80 |
|
|
|
39.05 |
|
|
|
6 |
|
11/01/19 |
|
10/31/20 |
|
|
17.46 |
|
|
|
0.23 |
|
|
|
(2.01) |
|
|
|
(1.78) |
|
|
|
|
| |
|
(0.42) |
|
|
|
— |
|
|
|
(0.42) |
|
|
|
15.26 |
|
|
|
1.15 |
|
|
|
4.63 |
|
|
|
1.44 |
|
|
|
54 |
|
|
|
(10.51) |
|
|
|
3 |
|
11/01/18 |
|
10/31/19 |
|
|
16.92 |
|
|
|
0.31 |
|
|
|
0.51 |
|
|
|
0.82 |
|
|
|
|
| |
|
(0.28) |
|
|
|
— |
|
|
|
(0.28) |
|
|
|
17.46 |
|
|
|
1.15 |
|
|
|
3.82 |
|
|
|
1.88 |
|
|
|
43 |
|
|
|
5.07 |
|
|
|
5 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.93 |
|
|
|
0.05 |
|
|
|
2.64 |
|
|
|
2.69 |
|
|
|
|
| |
|
(0.65) |
|
|
|
— |
|
|
|
(0.65) |
|
|
|
20.97 |
|
|
|
0.85 |
|
|
|
1.02 |
|
|
|
1.45 |
|
|
|
7 |
|
|
|
14.20 |
|
|
|
9 |
|
11/01/22 |
|
10/31/23 |
|
|
16.68 |
|
|
|
0.27 |
|
|
|
2.34 |
|
|
|
2.61 |
|
|
|
|
| |
|
(0.36) |
|
|
|
— |
|
|
|
(0.36) |
|
|
|
18.93 |
|
|
|
0.85 |
|
|
|
0.95 |
|
|
|
1.40 |
|
|
|
44 |
|
|
|
15.78 |
|
|
|
8 |
|
11/01/21 |
|
10/31/22 |
|
|
21.06 |
|
|
|
0.75 |
|
|
|
(4.74) |
|
|
|
(3.99) |
|
|
|
|
| |
|
(0.39) |
|
|
|
— |
|
|
|
(0.39) |
|
|
|
16.68 |
|
|
|
0.86 |
|
|
|
2.65 |
|
|
|
4.13 |
|
|
|
66 |
|
|
|
(19.32) |
|
|
|
12 |
|
11/01/20 |
|
10/31/21 |
|
|
15.31 |
|
|
|
0.39 |
|
|
|
5.57 |
|
|
|
5.96 |
|
|
|
|
| |
|
(0.21) |
|
|
|
— |
|
|
|
(0.21) |
|
|
|
21.06 |
|
|
|
1.05 |
|
|
|
4.82 |
|
|
|
2.03 |
|
|
|
80 |
|
|
|
39.19 |
|
|
|
0 |
|
11/01/19 |
|
10/31/20 |
|
|
17.51 |
|
|
|
0.25 |
|
|
|
(2.01) |
|
|
|
(1.76) |
|
|
|
|
| |
|
(0.44) |
|
|
|
— |
|
|
|
(0.44) |
|
|
|
15.31 |
|
|
|
1.05 |
|
|
|
4.66 |
|
|
|
1.59 |
|
|
|
54 |
|
|
|
(10.39) |
|
|
|
0 |
|
11/01/18 |
|
10/31/19 |
|
|
16.97 |
|
|
|
0.34 |
|
|
|
0.49 |
|
|
|
0.83 |
|
|
|
|
| |
|
(0.29) |
|
|
|
— |
|
|
|
(0.29) |
|
|
|
17.51 |
|
|
|
1.05 |
|
|
|
3.90 |
|
|
|
2.02 |
|
|
|
43 |
|
|
|
5.16 |
|
|
|
0 |
|
|
| |
162 | rjinvestmentmanagement.com |
|
|
Financial
Highlights
PROSPECTUS | 4.26.2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Eagle Growth & Income
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 20.12 |
|
|
|
$
0.07 |
|
|
|
$
2.85 |
|
|
|
$
2.92 |
|
|
|
|
| |
|
$ (0.07) |
|
|
|
$ (2.38) |
|
|
|
$ (2.45) |
|
|
|
$
20.59 |
|
|
|
1.02 |
|
|
|
1.02 |
|
|
|
2.01 |
|
|
|
5 |
|
|
|
14.57 |
|
|
|
$
206 |
|
11/01/22 |
|
10/31/23 |
|
|
21.95 |
|
|
|
0.37 |
|
|
|
(0.61) |
|
|
|
(0.24) |
|
|
|
|
| |
|
(0.37) |
|
|
|
(1.22) |
|
|
|
(1.59) |
|
|
|
20.12 |
|
|
|
0.98 |
|
|
|
0.98 |
|
|
|
1.71 |
|
|
|
40 |
|
|
|
(1.38) |
|
|
|
186 |
|
11/01/21 |
|
10/31/22 |
|
|
26.51 |
|
|
|
0.34 |
|
|
|
(2.51) |
|
|
|
(2.17) |
|
|
|
|
| |
|
(0.35) |
|
|
|
(2.04) |
|
|
|
(2.39) |
|
|
|
21.95 |
|
|
|
0.96 |
|
|
|
0.96 |
|
|
|
1.44 |
|
|
|
21 |
|
|
|
(8.95) |
|
|
|
210 |
|
11/01/20 |
|
10/31/21 |
|
|
20.22 |
|
|
|
0.34 |
|
|
|
7.02 |
|
|
|
7.36 |
|
|
|
|
| |
|
(0.34) |
|
|
|
(0.73) |
|
|
|
(1.07) |
|
|
|
26.51 |
|
|
|
0.96 |
|
|
|
0.96 |
|
|
|
1.42 |
|
|
|
32 |
|
|
|
37.44 |
|
|
|
234 |
|
11/01/19 |
|
10/31/20 |
|
|
21.70 |
|
|
|
0.37 |
|
|
|
(0.82) |
|
|
|
(0.45) |
|
|
|
|
| |
|
(0.37) |
|
|
|
(0.66) |
|
|
|
(1.03) |
|
|
|
20.22 |
|
|
|
0.97 |
|
|
|
0.97 |
|
|
|
1.81 |
|
|
|
41 |
|
|
|
(2.09) |
|
|
|
165 |
|
11/01/18 |
|
10/31/19 |
|
|
21.44 |
|
|
|
0.41 |
|
|
|
1.74 |
|
|
|
2.15 |
|
|
|
|
| |
|
(0.39) |
|
|
|
(1.50) |
|
|
|
(1.89) |
|
|
|
21.70 |
|
|
|
0.97 |
|
|
|
0.97 |
|
|
|
1.98 |
|
|
|
25 |
|
|
|
11.47 |
|
|
|
171 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.91 |
|
|
|
0.04 |
|
|
|
2.68 |
|
|
|
2.72 |
|
|
|
|
| |
|
(0.03) |
|
|
|
(2.23) |
|
|
|
(2.26) |
|
|
|
19.37 |
|
|
|
1.76 |
|
|
|
1.76 |
|
|
|
1.26 |
|
|
|
5 |
|
|
|
14.48 |
|
|
|
40 |
|
11/01/22 |
|
10/31/23 |
|
|
20.73 |
|
|
|
0.20 |
|
|
|
(0.58) |
|
|
|
(0.38) |
|
|
|
|
| |
|
(0.22) |
|
|
|
(1.22) |
|
|
|
(1.44) |
|
|
|
18.91 |
|
|
|
1.71 |
|
|
|
1.71 |
|
|
|
0.99 |
|
|
|
40 |
|
|
|
(2.13) |
|
|
|
38 |
|
11/01/21 |
|
10/31/22 |
|
|
25.17 |
|
|
|
0.16 |
|
|
|
(2.37) |
|
|
|
(2.21) |
|
|
|
|
| |
|
(0.19) |
|
|
|
(2.04) |
|
|
|
(2.23) |
|
|
|
20.73 |
|
|
|
1.68 |
|
|
|
1.68 |
|
|
|
0.72 |
|
|
|
21 |
|
|
|
(9.63) |
|
|
|
53 |
|
11/01/20 |
|
10/31/21 |
|
|
19.24 |
|
|
|
0.16 |
|
|
|
6.67 |
|
|
|
6.83 |
|
|
|
|
| |
|
(0.17) |
|
|
|
(0.73) |
|
|
|
(0.90) |
|
|
|
25.17 |
|
|
|
1.69 |
|
|
|
1.69 |
|
|
|
0.72 |
|
|
|
32 |
|
|
|
36.47 |
|
|
|
79 |
|
11/01/19 |
|
10/31/20 |
|
|
20.68 |
|
|
|
0.21 |
|
|
|
(0.77) |
|
|
|
(0.56) |
|
|
|
|
| |
|
(0.22) |
|
|
|
(0.66) |
|
|
|
(0.88) |
|
|
|
19.24 |
|
|
|
1.73 |
|
|
|
1.73 |
|
|
|
1.08 |
|
|
|
41 |
|
|
|
(2.82) |
|
|
|
79 |
|
11/01/18 |
|
10/31/19 |
|
|
20.52 |
|
|
|
0.24 |
|
|
|
1.66 |
|
|
|
1.90 |
|
|
|
|
| |
|
(0.24) |
|
|
|
(1.50) |
|
|
|
(1.74) |
|
|
|
20.68 |
|
|
|
1.72 |
|
|
|
1.72 |
|
|
|
1.23 |
|
|
|
25 |
|
|
|
10.66 |
|
|
|
133 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
20.04 |
|
|
|
0.08 |
|
|
|
2.85 |
|
|
|
2.93 |
|
|
|
|
| |
|
(0.09) |
|
|
|
(2.37) |
|
|
|
(2.46) |
|
|
|
20.51 |
|
|
|
0.77 |
|
|
|
0.77 |
|
|
|
2.27 |
|
|
|
5 |
|
|
|
14.66 |
|
|
|
352 |
|
11/01/22 |
|
10/31/23 |
|
|
21.88 |
|
|
|
0.43 |
|
|
|
(0.62) |
|
|
|
(0.19) |
|
|
|
|
| |
|
(0.43) |
|
|
|
(1.22) |
|
|
|
(1.65) |
|
|
|
20.04 |
|
|
|
0.72 |
|
|
|
0.72 |
|
|
|
1.98 |
|
|
|
40 |
|
|
|
(1.18) |
|
|
|
334 |
|
11/01/21 |
|
10/31/22 |
|
|
26.43 |
|
|
|
0.40 |
|
|
|
(2.49) |
|
|
|
(2.09) |
|
|
|
|
| |
|
(0.42) |
|
|
|
(2.04) |
|
|
|
(2.46) |
|
|
|
21.88 |
|
|
|
0.69 |
|
|
|
0.69 |
|
|
|
1.71 |
|
|
|
21 |
|
|
|
(8.68) |
|
|
|
556 |
|
11/01/20 |
|
10/31/21 |
|
|
20.16 |
|
|
|
0.41 |
|
|
|
7.00 |
|
|
|
7.41 |
|
|
|
|
| |
|
(0.41) |
|
|
|
(0.73) |
|
|
|
(1.14) |
|
|
|
26.43 |
|
|
|
0.68 |
|
|
|
0.68 |
|
|
|
1.70 |
|
|
|
32 |
|
|
|
37.83 |
|
|
|
661 |
|
11/01/19 |
|
10/31/20 |
|
|
21.64 |
|
|
|
0.42 |
|
|
|
(0.81) |
|
|
|
(0.39) |
|
|
|
|
| |
|
(0.43) |
|
|
|
(0.66) |
|
|
|
(1.09) |
|
|
|
20.16 |
|
|
|
0.70 |
|
|
|
0.70 |
|
|
|
2.07 |
|
|
|
41 |
|
|
|
(1.82) |
|
|
|
487 |
|
11/01/18 |
|
10/31/19 |
|
|
21.39 |
|
|
|
0.46 |
|
|
|
1.74 |
|
|
|
2.20 |
|
|
|
|
| |
|
(0.45) |
|
|
|
(1.50) |
|
|
|
(1.95) |
|
|
|
21.64 |
|
|
|
0.70 |
|
|
|
0.70 |
|
|
|
2.21 |
|
|
|
25 |
|
|
|
11.76 |
|
|
|
492 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
20.00 |
|
|
|
0.08 |
|
|
|
2.85 |
|
|
|
2.93 |
|
|
|
|
| |
|
(0.09) |
|
|
|
(2.37) |
|
|
|
(2.46) |
|
|
|
20.47 |
|
|
|
0.69 |
|
|
|
0.69 |
|
|
|
2.35 |
|
|
|
5 |
|
|
|
14.69 |
|
|
|
9 |
|
11/01/22 |
|
10/31/23 |
|
|
21.84 |
|
|
|
0.44 |
|
|
|
(0.61) |
|
|
|
(0.17) |
|
|
|
|
| |
|
(0.45) |
|
|
|
(1.22) |
|
|
|
(1.67) |
|
|
|
20.00 |
|
|
|
0.64 |
|
|
|
0.64 |
|
|
|
2.05 |
|
|
|
40 |
|
|
|
(1.08) |
|
|
|
8 |
|
11/01/21 |
|
10/31/22 |
|
|
26.39 |
|
|
|
0.42 |
|
|
|
(2.49) |
|
|
|
(2.07) |
|
|
|
|
| |
|
(0.44) |
|
|
|
(2.04) |
|
|
|
(2.48) |
|
|
|
21.84 |
|
|
|
0.61 |
|
|
|
0.61 |
|
|
|
1.79 |
|
|
|
21 |
|
|
|
(8.61) |
|
|
|
9 |
|
11/01/20 |
|
10/31/21 |
|
|
20.13 |
|
|
|
0.42 |
|
|
|
7.00 |
|
|
|
7.42 |
|
|
|
|
| |
|
(0.43) |
|
|
|
(0.73) |
|
|
|
(1.16) |
|
|
|
26.39 |
|
|
|
0.61 |
|
|
|
0.61 |
|
|
|
1.73 |
|
|
|
32 |
|
|
|
37.94 |
|
|
|
8 |
|
11/01/19 |
|
10/31/20 |
|
|
21.59 |
|
|
|
0.54 |
|
|
|
(0.98) |
|
|
|
(0.44) |
|
|
|
|
| |
|
(0.36) |
|
|
|
(0.66) |
|
|
|
(1.02) |
|
|
|
20.13 |
|
|
|
0.62 |
|
|
|
0.62 |
|
|
|
2.58 |
|
|
|
41 |
|
|
|
(2.03) |
|
|
|
2 |
|
11/01/18 |
|
10/31/19 |
|
|
21.34 |
|
|
|
0.48 |
|
|
|
1.73 |
|
|
|
2.21 |
|
|
|
|
| |
|
(0.46) |
|
|
|
(1.50) |
|
|
|
(1.96) |
|
|
|
21.59 |
|
|
|
0.63 |
|
|
|
0.63 |
|
|
|
2.31 |
|
|
|
25 |
|
|
|
11.87 |
|
|
|
49 |
|
|
| |
| |
rjinvestmentmanagement.com | 163 |
Financial
Highlights
PROSPECTUS | 4.26.2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Fiscal
period |
|
|
|
|
From investment
operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Eagle Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 66.19 |
|
|
|
$
(0.02) |
|
|
|
$
12.64 |
|
|
|
$
12.62 |
|
|
|
|
| |
|
$
— |
|
|
|
$ (8.28) |
|
|
|
$ (8.28) |
|
|
|
$
70.53 |
|
|
|
1.05 |
|
|
|
1.05 |
|
|
|
(0.16) |
|
|
|
3 |
|
|
|
19.12 |
|
|
|
$
618 |
|
11/01/22 |
|
10/31/23 |
|
|
68.34 |
|
|
|
(0.31) |
|
|
|
(0.91) |
|
|
|
(1.22) |
|
|
|
|
| |
|
— |
|
|
|
(0.93) |
|
|
|
(0.93) |
|
|
|
66.19 |
|
|
|
1.05 |
|
|
|
1.05 |
|
|
|
(0.45) |
|
|
|
49 |
|
|
|
(1.78) |
|
|
|
539 |
|
11/01/21 |
|
10/31/22 |
|
|
104.16 |
|
|
|
(0.47) |
|
|
|
(25.60) |
|
|
|
(26.07) |
|
|
|
|
| |
|
— |
|
|
|
(9.75) |
|
|
|
(9.75) |
|
|
|
68.34 |
|
|
|
1.04 |
|
|
|
1.04 |
|
|
|
(0.61) |
|
|
|
34 |
|
|
|
(26.95) |
|
|
|
595 |
|
11/01/20 |
|
10/31/21 |
|
|
77.60 |
|
|
|
(0.63) |
|
|
|
29.23 |
|
|
|
28.60 |
|
|
|
|
| |
|
— |
|
|
|
(2.04) |
|
|
|
(2.04) |
|
|
|
104.16 |
|
|
|
1.03 |
|
|
|
1.03 |
|
|
|
(0.67) |
|
|
|
23 |
|
|
|
37.25 |
|
|
|
942 |
|
11/01/19 |
|
10/31/20 |
|
|
63.14 |
|
|
|
(0.37) |
|
|
|
16.27 |
|
|
|
15.90 |
|
|
|
|
| |
|
— |
|
|
|
(1.44) |
|
|
|
(1.44) |
|
|
|
77.60 |
|
|
|
1.04 |
|
|
|
1.04 |
|
|
|
(0.54) |
|
|
|
27 |
|
|
|
25.62 |
|
|
|
786 |
|
11/01/18 |
|
10/31/19 |
|
|
56.19 |
|
|
|
(0.26) |
|
|
|
8.71 |
|
|
|
8.45 |
|
|
|
|
| |
|
— |
|
|
|
(1.50) |
|
|
|
(1.50) |
|
|
|
63.14 |
|
|
|
1.05 |
|
|
|
1.05 |
|
|
|
(0.44) |
|
|
|
32 |
|
|
|
15.81 |
|
|
|
719 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
47.71 |
|
|
|
(0.07) |
|
|
|
9.10 |
|
|
|
9.03 |
|
|
|
|
| |
|
— |
|
|
|
(5.96) |
|
|
|
(5.96) |
|
|
|
50.78 |
|
|
|
1.74 |
|
|
|
1.74 |
|
|
|
(0.84) |
|
|
|
3 |
|
|
|
18.99 |
|
|
|
70 |
|
11/01/22 |
|
10/31/23 |
|
|
49.85 |
|
|
|
(0.57) |
|
|
|
(0.64) |
|
|
|
(1.21) |
|
|
|
|
| |
|
— |
|
|
|
(0.93) |
|
|
|
(0.93) |
|
|
|
47.71 |
|
|
|
1.73 |
|
|
|
1.73 |
|
|
|
(1.12) |
|
|
|
49 |
|
|
|
(2.43) |
|
|
|
64 |
|
11/01/21 |
|
10/31/22 |
|
|
79.34 |
|
|
|
(0.74) |
|
|
|
(19.00) |
|
|
|
(19.74) |
|
|
|
|
| |
|
— |
|
|
|
(9.75) |
|
|
|
(9.75) |
|
|
|
49.85 |
|
|
|
1.72 |
|
|
|
1.72 |
|
|
|
(1.29) |
|
|
|
34 |
|
|
|
(27.46) |
|
|
|
84 |
|
11/01/20 |
|
10/31/21 |
|
|
59.92 |
|
|
|
(0.97) |
|
|
|
22.43 |
|
|
|
21.46 |
|
|
|
|
| |
|
— |
|
|
|
(2.04) |
|
|
|
(2.04) |
|
|
|
79.34 |
|
|
|
1.71 |
|
|
|
1.71 |
|
|
|
(1.35) |
|
|
|
23 |
|
|
|
36.30 |
|
|
|
141 |
|
11/01/19 |
|
10/31/20 |
|
|
49.40 |
|
|
|
(0.65) |
|
|
|
12.61 |
|
|
|
11.96 |
|
|
|
|
| |
|
— |
|
|
|
(1.44) |
|
|
|
(1.44) |
|
|
|
59.92 |
|
|
|
1.74 |
|
|
|
1.74 |
|
|
|
(1.24) |
|
|
|
27 |
|
|
|
24.75 |
|
|
|
134 |
|
11/01/18 |
|
10/31/19 |
|
|
44.61 |
|
|
|
(0.52) |
|
|
|
6.81 |
|
|
|
6.29 |
|
|
|
|
| |
|
— |
|
|
|
(1.50) |
|
|
|
(1.50) |
|
|
|
49.40 |
|
|
|
1.74 |
|
|
|
1.74 |
|
|
|
(1.12) |
|
|
|
32 |
|
|
|
15.05 |
|
|
|
136 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
72.00 |
|
|
|
0.02 |
|
|
|
13.76 |
|
|
|
13.78 |
|
|
|
|
| |
|
— |
|
|
|
(9.01) |
|
|
|
(9.01) |
|
|
|
76.77 |
|
|
|
0.73 |
|
|
|
0.73 |
|
|
|
0.15 |
|
|
|
3 |
|
|
|
19.20 |
|
|
|
1,296 |
|
11/01/22 |
|
10/31/23 |
|
|
74.02 |
|
|
|
(0.09) |
|
|
|
(1.00) |
|
|
|
(1.09) |
|
|
|
|
| |
|
— |
|
|
|
(0.93) |
|
|
|
(0.93) |
|
|
|
72.00 |
|
|
|
0.73 |
|
|
|
0.73 |
|
|
|
(0.12) |
|
|
|
49 |
|
|
|
(1.46) |
|
|
|
1,136 |
|
11/01/21 |
|
10/31/22 |
|
|
111.62 |
|
|
|
(0.24) |
|
|
|
(27.61) |
|
|
|
(27.85) |
|
|
|
|
| |
|
— |
|
|
|
(9.75) |
|
|
|
(9.75) |
|
|
|
74.02 |
|
|
|
0.72 |
|
|
|
0.72 |
|
|
|
(0.29) |
|
|
|
34 |
|
|
|
(26.72) |
|
|
|
1,368 |
|
11/01/20 |
|
10/31/21 |
|
|
82.78 |
|
|
|
(0.37) |
|
|
|
31.25 |
|
|
|
30.88 |
|
|
|
|
| |
|
— |
|
|
|
(2.04) |
|
|
|
(2.04) |
|
|
|
111.62 |
|
|
|
0.72 |
|
|
|
0.72 |
|
|
|
(0.37) |
|
|
|
23 |
|
|
|
37.68 |
|
|
|
1,993 |
|
11/01/19 |
|
10/31/20 |
|
|
67.06 |
|
|
|
(0.17) |
|
|
|
17.33 |
|
|
|
17.16 |
|
|
|
|
| |
|
— |
|
|
|
(1.44) |
|
|
|
(1.44) |
|
|
|
82.78 |
|
|
|
0.72 |
|
|
|
0.72 |
|
|
|
(0.23) |
|
|
|
27 |
|
|
|
26.01 |
|
|
|
1,547 |
|
11/01/18 |
|
10/31/19 |
|
|
59.38 |
|
|
|
(0.08) |
|
|
|
9.26 |
|
|
|
9.18 |
|
|
|
|
| |
|
— |
|
|
|
(1.50) |
|
|
|
(1.50) |
|
|
|
67.06 |
|
|
|
0.74 |
|
|
|
0.74 |
|
|
|
(0.12) |
|
|
|
32 |
|
|
|
16.20 |
|
|
|
1,319 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
72.91 |
|
|
|
0.03 |
|
|
|
13.94 |
|
|
|
13.97 |
|
|
|
|
| |
|
— |
|
|
|
(9.13) |
|
|
|
(9.13) |
|
|
|
77.75 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.23 |
|
|
|
3 |
|
|
|
19.22 |
|
|
|
3,560 |
|
11/01/22 |
|
10/31/23 |
|
|
74.88 |
|
|
|
(0.03) |
|
|
|
(1.01) |
|
|
|
(1.04) |
|
|
|
|
| |
|
— |
|
|
|
(0.93) |
|
|
|
(0.93) |
|
|
|
72.91 |
|
|
|
0.64 |
|
|
|
0.64 |
|
|
|
(0.04) |
|
|
|
49 |
|
|
|
(1.38) |
|
|
|
3,037 |
|
11/01/21 |
|
10/31/22 |
|
|
112.71 |
|
|
|
(0.18) |
|
|
|
(27.90) |
|
|
|
(28.08) |
|
|
|
|
| |
|
— |
|
|
|
(9.75) |
|
|
|
(9.75) |
|
|
|
74.88 |
|
|
|
0.64 |
|
|
|
0.64 |
|
|
|
(0.21) |
|
|
|
34 |
|
|
|
(26.66) |
|
|
|
3,263 |
|
11/01/20 |
|
10/31/21 |
|
|
83.51 |
|
|
|
(0.28) |
|
|
|
31.52 |
|
|
|
31.24 |
|
|
|
|
| |
|
— |
|
|
|
(2.04) |
|
|
|
(2.04) |
|
|
|
112.71 |
|
|
|
0.63 |
|
|
|
0.63 |
|
|
|
(0.28) |
|
|
|
23 |
|
|
|
37.79 |
|
|
|
4,561 |
|
11/01/19 |
|
10/31/20 |
|
|
67.58 |
|
|
|
(0.11) |
|
|
|
17.48 |
|
|
|
17.37 |
|
|
|
|
| |
|
— |
|
|
|
(1.44) |
|
|
|
(1.44) |
|
|
|
83.51 |
|
|
|
0.64 |
|
|
|
0.64 |
|
|
|
(0.15) |
|
|
|
27 |
|
|
|
26.12 |
|
|
|
3,295 |
|
11/01/18 |
|
10/31/19 |
|
|
59.78 |
|
|
|
(0.03) |
|
|
|
9.33 |
|
|
|
9.30 |
|
|
|
|
| |
|
— |
|
|
|
(1.50) |
|
|
|
(1.50) |
|
|
|
67.58 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
(0.04) |
|
|
|
32 |
|
|
|
16.30 |
|
|
|
2,695 |
|
|
| |
164 | rjinvestmentmanagement.com |
|
|
Financial
Highlights
PROSPECTUS | 4.26.2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Eagle Small Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 20.41 |
|
|
|
$
(0.00) |
|
|
|
$
3.87 |
|
|
|
$
3.87 |
|
|
|
|
| |
|
$
— |
|
|
|
$ (2.08) |
|
|
|
$ (2.08) |
|
|
|
$
22.20 |
|
|
|
1.21 |
|
|
|
1.21 |
|
|
|
(0.12) |
|
|
|
8 |
|
|
|
19.04 |
|
|
|
$
146 |
|
11/01/22 |
|
10/31/23 |
|
|
31.07 |
|
|
|
(0.14) |
|
|
|
(2.21) |
|
|
|
(2.35) |
|
|
|
|
| |
|
— |
|
|
|
(8.31) |
|
|
|
(8.31) |
|
|
|
20.41 |
|
|
|
1.18 |
|
|
|
1.18 |
|
|
|
(0.61) |
|
|
|
39 |
|
|
|
(8.32) |
|
|
|
130 |
|
11/01/21 |
|
10/31/22 |
|
|
61.37 |
|
|
|
(0.22) |
|
|
|
(13.76) |
|
|
|
(13.98) |
|
|
|
|
| |
|
— |
|
|
|
(16.32) |
|
|
|
(16.32) |
|
|
|
31.07 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
(0.62) |
|
|
|
40 |
|
|
|
(28.12) |
|
|
|
202 |
|
11/01/20 |
|
10/31/21 |
|
|
54.04 |
|
|
|
(0.43) |
|
|
|
18.33 |
|
|
|
17.90 |
|
|
|
|
| |
|
— |
|
|
|
(10.57) |
|
|
|
(10.57) |
|
|
|
61.37 |
|
|
|
1.06 |
|
|
|
1.06 |
|
|
|
(0.73) |
|
|
|
28 |
|
|
|
34.65 |
|
|
|
384 |
|
11/01/19 |
|
10/31/20 |
|
|
48.23 |
|
|
|
(0.37) |
|
|
|
9.45 |
|
|
|
9.08 |
|
|
|
|
| |
|
— |
|
|
|
(3.27) |
|
|
|
(3.27) |
|
|
|
54.04 |
|
|
|
1.08 |
|
|
|
1.08 |
|
|
|
(0.77) |
|
|
|
21 |
|
|
|
19.50 |
|
|
|
336 |
|
11/01/18 |
|
10/31/19 |
|
|
59.15 |
|
|
|
(0.32) |
|
|
|
0.39 |
|
|
|
0.07 |
|
|
|
|
| |
|
— |
|
|
|
(10.99) |
|
|
|
(10.99) |
|
|
|
48.23 |
|
|
|
1.08 |
|
|
|
1.08 |
|
|
|
(0.65) |
|
|
|
26 |
|
|
|
3.64 |
|
|
|
394 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
2.64 |
|
|
|
(0.00) |
|
|
|
0.49 |
|
|
|
0.49 |
|
|
|
|
| |
|
— |
|
|
|
(0.27) |
|
|
|
(0.27) |
|
|
|
2.86 |
|
|
|
1.95 |
|
|
|
1.95 |
|
|
|
(0.85) |
|
|
|
8 |
|
|
|
18.58 |
|
|
|
11 |
|
11/01/22 |
|
10/31/23 |
|
|
11.71 |
|
|
|
(0.04) |
|
|
|
(0.72) |
|
|
|
(0.76) |
|
|
|
|
| |
|
— |
|
|
|
(8.31) |
|
|
|
(8.31) |
|
|
|
2.64 |
|
|
|
1.88 |
|
|
|
1.88 |
|
|
|
(1.31) |
|
|
|
39 |
|
|
|
(8.84) |
|
|
|
10 |
|
11/01/21 |
|
10/31/22 |
|
|
34.57 |
|
|
|
(0.19) |
|
|
|
(6.35) |
|
|
|
(6.54) |
|
|
|
|
| |
|
— |
|
|
|
(16.32) |
|
|
|
(16.32) |
|
|
|
11.71 |
|
|
|
1.80 |
|
|
|
1.80 |
|
|
|
(1.32) |
|
|
|
40 |
|
|
|
(28.64) |
|
|
|
16 |
|
11/01/20 |
|
10/31/21 |
|
|
34.32 |
|
|
|
(0.48) |
|
|
|
11.30 |
|
|
|
10.82 |
|
|
|
|
| |
|
— |
|
|
|
(10.57) |
|
|
|
(10.57) |
|
|
|
34.57 |
|
|
|
1.76 |
|
|
|
1.76 |
|
|
|
(1.41) |
|
|
|
28 |
|
|
|
33.73 |
|
|
|
34 |
|
11/01/19 |
|
10/31/20 |
|
|
31.93 |
|
|
|
(0.45) |
|
|
|
6.11 |
|
|
|
5.66 |
|
|
|
|
| |
|
— |
|
|
|
(3.27) |
|
|
|
(3.27) |
|
|
|
34.32 |
|
|
|
1.77 |
|
|
|
1.77 |
|
|
|
(1.45) |
|
|
|
21 |
|
|
|
18.67 |
|
|
|
48 |
|
11/01/18 |
|
10/31/19 |
|
|
43.65 |
|
|
|
(0.44) |
|
|
|
(0.29) |
|
|
|
(0.73) |
|
|
|
|
| |
|
— |
|
|
|
(10.99) |
|
|
|
(10.99) |
|
|
|
31.93 |
|
|
|
1.76 |
|
|
|
1.76 |
|
|
|
(1.32) |
|
|
|
26 |
|
|
|
2.92 |
|
|
|
68 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
24.49 |
|
|
|
0.01 |
|
|
|
4.65 |
|
|
|
4.66 |
|
|
|
|
| |
|
— |
|
|
|
(2.50) |
|
|
|
(2.50) |
|
|
|
26.65 |
|
|
|
0.92 |
|
|
|
0.92 |
|
|
|
0.17 |
|
|
|
8 |
|
|
|
19.10 |
|
|
|
206 |
|
11/01/22 |
|
10/31/23 |
|
|
35.44 |
|
|
|
(0.09) |
|
|
|
(2.55) |
|
|
|
(2.64) |
|
|
|
|
| |
|
— |
|
|
|
(8.31) |
|
|
|
(8.31) |
|
|
|
24.49 |
|
|
|
0.89 |
|
|
|
0.89 |
|
|
|
(0.32) |
|
|
|
39 |
|
|
|
(8.06) |
|
|
|
181 |
|
11/01/21 |
|
10/31/22 |
|
|
67.29 |
|
|
|
(0.13) |
|
|
|
(15.40) |
|
|
|
(15.53) |
|
|
|
|
| |
|
— |
|
|
|
(16.32) |
|
|
|
(16.32) |
|
|
|
35.44 |
|
|
|
0.80 |
|
|
|
0.80 |
|
|
|
(0.32) |
|
|
|
40 |
|
|
|
(27.90) |
|
|
|
377 |
|
11/01/20 |
|
10/31/21 |
|
|
58.29 |
|
|
|
(0.28) |
|
|
|
19.85 |
|
|
|
19.57 |
|
|
|
|
| |
|
— |
|
|
|
(10.57) |
|
|
|
(10.57) |
|
|
|
67.29 |
|
|
|
0.77 |
|
|
|
0.77 |
|
|
|
(0.44) |
|
|
|
28 |
|
|
|
35.04 |
|
|
|
777 |
|
11/01/19 |
|
10/31/20 |
|
|
51.64 |
|
|
|
(0.24) |
|
|
|
10.16 |
|
|
|
9.92 |
|
|
|
|
| |
|
— |
|
|
|
(3.27) |
|
|
|
(3.27) |
|
|
|
58.29 |
|
|
|
0.78 |
|
|
|
0.78 |
|
|
|
(0.46) |
|
|
|
21 |
|
|
|
19.86 |
|
|
|
803 |
|
11/01/18 |
|
10/31/19 |
|
|
62.28 |
|
|
|
(0.17) |
|
|
|
0.52 |
|
|
|
0.35 |
|
|
|
|
| |
|
— |
|
|
|
(10.99) |
|
|
|
(10.99) |
|
|
|
51.64 |
|
|
|
0.76 |
|
|
|
0.76 |
|
|
|
(0.33) |
|
|
|
26 |
|
|
|
3.96 |
|
|
|
1,040 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
25.65 |
|
|
|
0.01 |
|
|
|
4.88 |
|
|
|
4.89 |
|
|
|
|
| |
|
— |
|
|
|
(2.62) |
|
|
|
(2.62) |
|
|
|
27.92 |
|
|
|
0.83 |
|
|
|
0.83 |
|
|
|
0.26 |
|
|
|
8 |
|
|
|
19.13 |
|
|
|
193 |
|
11/01/22 |
|
10/31/23 |
|
|
36.68 |
|
|
|
(0.07) |
|
|
|
(2.65) |
|
|
|
(2.72) |
|
|
|
|
| |
|
— |
|
|
|
(8.31) |
|
|
|
(8.31) |
|
|
|
25.65 |
|
|
|
0.78 |
|
|
|
0.78 |
|
|
|
(0.22) |
|
|
|
39 |
|
|
|
(7.99) |
|
|
|
167 |
|
11/01/21 |
|
10/31/22 |
|
|
68.96 |
|
|
|
(0.10) |
|
|
|
(15.86) |
|
|
|
(15.96) |
|
|
|
|
| |
|
— |
|
|
|
(16.32) |
|
|
|
(16.32) |
|
|
|
36.68 |
|
|
|
0.71 |
|
|
|
0.71 |
|
|
|
(0.22) |
|
|
|
40 |
|
|
|
(27.83) |
|
|
|
336 |
|
11/01/20 |
|
10/31/21 |
|
|
59.47 |
|
|
|
(0.22) |
|
|
|
20.28 |
|
|
|
20.06 |
|
|
|
|
| |
|
— |
|
|
|
(10.57) |
|
|
|
(10.57) |
|
|
|
68.96 |
|
|
|
0.66 |
|
|
|
0.66 |
|
|
|
(0.33) |
|
|
|
28 |
|
|
|
35.18 |
|
|
|
985 |
|
11/01/19 |
|
10/31/20 |
|
|
52.56 |
|
|
|
(0.18) |
|
|
|
10.36 |
|
|
|
10.18 |
|
|
|
|
| |
|
— |
|
|
|
(3.27) |
|
|
|
(3.27) |
|
|
|
59.47 |
|
|
|
0.66 |
|
|
|
0.66 |
|
|
|
(0.34) |
|
|
|
21 |
|
|
|
20.01 |
|
|
|
1,427 |
|
11/01/18 |
|
10/31/19 |
|
|
63.11 |
|
|
|
(0.12) |
|
|
|
0.56 |
|
|
|
0.44 |
|
|
|
|
| |
|
— |
|
|
|
(10.99) |
|
|
|
(10.99) |
|
|
|
52.56 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
(0.23) |
|
|
|
26 |
|
|
|
4.07 |
|
|
|
2,186 |
|
|
| |
| |
rjinvestmentmanagement.com | 165 |
Financial
Highlights
PROSPECTUS | 4.26.2024
|
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| |
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|
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|
|
| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Scout Mid Cap Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 18.69 |
|
|
|
$
0.01 |
|
|
|
$
2.94 |
|
|
|
$
2.95 |
|
|
|
|
| |
|
$ (0.01) |
|
|
|
$
— |
|
|
|
$ (0.01) |
|
|
|
$
21.63 |
|
|
|
1.26 |
|
|
|
1.26 |
|
|
|
0.29 |
|
|
|
17 |
|
|
|
15.78 |
|
|
|
$
26 |
|
11/01/22 |
|
10/31/23 |
|
|
20.09 |
|
|
|
(0.00) |
|
|
|
(0.65) |
|
|
|
(0.65) |
|
|
|
|
| |
|
(0.16) |
|
|
|
(0.59) |
|
|
|
(0.75) |
|
|
|
18.69 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
(0.01) |
|
|
|
112 |
|
|
|
(3.27) |
|
|
|
23 |
|
11/01/21 |
|
10/31/22 |
|
|
27.73 |
|
|
|
0.14 |
|
|
|
(4.97) |
|
|
|
(4.83) |
|
|
|
|
| |
|
(0.01) |
|
|
|
(2.80) |
|
|
|
(2.81) |
|
|
|
20.09 |
|
|
|
1.23 |
|
|
|
1.23 |
|
|
|
0.62 |
|
|
|
159 |
|
|
|
(18.72) |
|
|
|
26 |
|
11/01/20 |
|
10/31/21 |
|
|
19.92 |
|
|
|
(0.06) |
|
|
|
8.39 |
|
|
|
8.33 |
|
|
|
|
| |
|
— |
|
|
|
(0.52) |
|
|
|
(0.52) |
|
|
|
27.73 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
(0.22) |
|
|
|
109 |
|
|
|
42.31 |
|
|
|
33 |
|
11/01/19 |
|
10/31/20 |
|
|
18.38 |
|
|
|
0.02 |
|
|
|
1.63 |
|
|
|
1.65 |
|
|
|
|
| |
|
(0.10) |
|
|
|
(0.01) |
|
|
|
(0.11) |
|
|
|
19.92 |
|
|
|
1.22 |
|
|
|
1.22 |
|
|
|
0.12 |
|
|
|
109 |
|
|
|
9.01 |
|
|
|
19 |
|
11/01/18 |
|
10/31/19 |
|
|
18.37 |
|
|
|
0.09 |
|
|
|
1.20 |
|
|
|
1.29 |
|
|
|
|
| |
|
(0.09) |
|
|
|
(1.19) |
|
|
|
(1.28) |
|
|
|
18.38 |
|
|
|
1.20 |
|
|
|
1.20 |
|
|
|
0.50 |
|
|
|
170 |
|
|
|
8.31 |
|
|
|
21 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.11 |
|
|
|
(0.01) |
|
|
|
2.83 |
|
|
|
2.82 |
|
|
|
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20.93 |
|
|
|
2.00 |
|
|
|
2.00 |
|
|
|
(0.45) |
|
|
|
17 |
|
|
|
15.57 |
|
|
|
19 |
|
11/01/22 |
|
10/31/23 |
|
|
19.47 |
|
|
|
(0.14) |
|
|
|
(0.62) |
|
|
|
(0.76) |
|
|
|
|
| |
|
(0.01) |
|
|
|
(0.59) |
|
|
|
(0.60) |
|
|
|
18.11 |
|
|
|
1.98 |
|
|
|
1.98 |
|
|
|
(0.74) |
|
|
|
112 |
|
|
|
(3.97) |
|
|
|
17 |
|
11/01/21 |
|
10/31/22 |
|
|
27.14 |
|
|
|
(0.03) |
|
|
|
(4.84) |
|
|
|
(4.87) |
|
|
|
|
| |
|
— |
|
|
|
(2.80) |
|
|
|
(2.80) |
|
|
|
19.47 |
|
|
|
1.97 |
|
|
|
1.97 |
|
|
|
(0.14) |
|
|
|
159 |
|
|
|
(19.32) |
|
|
|
24 |
|
11/01/20 |
|
10/31/21 |
|
|
19.65 |
|
|
|
(0.25) |
|
|
|
8.26 |
|
|
|
8.01 |
|
|
|
|
| |
|
— |
|
|
|
(0.52) |
|
|
|
(0.52) |
|
|
|
27.14 |
|
|
|
1.96 |
|
|
|
1.96 |
|
|
|
(0.99) |
|
|
|
109 |
|
|
|
41.25 |
|
|
|
31 |
|
11/01/19 |
|
10/31/20 |
|
|
18.17 |
|
|
|
(0.12) |
|
|
|
1.61 |
|
|
|
1.49 |
|
|
|
|
| |
|
— |
|
|
|
(0.01) |
|
|
|
(0.01) |
|
|
|
19.65 |
|
|
|
2.00 |
|
|
|
2.00 |
|
|
|
(0.65) |
|
|
|
109 |
|
|
|
8.23 |
|
|
|
19 |
|
11/01/18 |
|
10/31/19 |
|
|
18.26 |
|
|
|
(0.05) |
|
|
|
1.18 |
|
|
|
1.13 |
|
|
|
|
| |
|
(0.03) |
|
|
|
(1.19) |
|
|
|
(1.22) |
|
|
|
18.17 |
|
|
|
1.99 |
|
|
|
1.99 |
|
|
|
(0.28) |
|
|
|
170 |
|
|
|
7.34 |
|
|
|
20 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.86 |
|
|
|
0.02 |
|
|
|
2.96 |
|
|
|
2.98 |
|
|
|
|
| |
|
(0.04) |
|
|
|
— |
|
|
|
(0.04) |
|
|
|
21.80 |
|
|
|
1.00 |
|
|
|
1.00 |
|
|
|
0.56 |
|
|
|
17 |
|
|
|
15.78 |
|
|
|
2,918 |
|
11/01/22 |
|
10/31/23 |
|
|
20.27 |
|
|
|
0.05 |
|
|
|
(0.65) |
|
|
|
(0.60) |
|
|
|
|
| |
|
(0.22) |
|
|
|
(0.59) |
|
|
|
(0.81) |
|
|
|
18.86 |
|
|
|
0.98 |
|
|
|
0.98 |
|
|
|
0.26 |
|
|
|
112 |
|
|
|
(2.99) |
|
|
|
2,682 |
|
11/01/21 |
|
10/31/22 |
|
|
27.90 |
|
|
|
0.20 |
|
|
|
(5.01) |
|
|
|
(4.81) |
|
|
|
|
| |
|
(0.02) |
|
|
|
(2.80) |
|
|
|
(2.82) |
|
|
|
20.27 |
|
|
|
0.96 |
|
|
|
0.96 |
|
|
|
0.87 |
|
|
|
159 |
|
|
|
(18.52) |
|
|
|
3,446 |
|
11/01/20 |
|
10/31/21 |
|
|
20.03 |
|
|
|
— |
(d) |
|
|
8.44 |
|
|
|
8.44 |
|
|
|
|
| |
|
(0.05) |
|
|
|
(0.52) |
|
|
|
(0.57) |
|
|
|
27.90 |
|
|
|
0.95 |
|
|
|
0.95 |
|
|
|
0.02 |
|
|
|
109 |
|
|
|
42.67 |
|
|
|
4,560 |
|
11/01/19 |
|
10/31/20 |
|
|
18.46 |
|
|
|
0.07 |
|
|
|
1.64 |
|
|
|
1.71 |
|
|
|
|
| |
|
(0.13) |
|
|
|
(0.01) |
|
|
|
(0.14) |
|
|
|
20.03 |
|
|
|
0.97 |
|
|
|
0.97 |
|
|
|
0.37 |
|
|
|
109 |
|
|
|
9.31 |
|
|
|
2,581 |
|
11/01/18 |
|
10/31/19 |
|
|
18.41 |
|
|
|
0.13 |
|
|
|
1.20 |
|
|
|
1.33 |
|
|
|
|
| |
|
(0.09) |
|
|
|
(1.19) |
|
|
|
(1.28) |
|
|
|
18.46 |
|
|
|
0.98 |
|
|
|
0.98 |
|
|
|
0.75 |
|
|
|
170 |
|
|
|
8.48 |
|
|
|
2,685 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
18.86 |
|
|
|
0.02 |
|
|
|
2.96 |
|
|
|
2.98 |
|
|
|
|
| |
|
(0.07) |
|
|
|
— |
|
|
|
(0.07) |
|
|
|
21.77 |
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
0.66 |
|
|
|
17 |
|
|
|
15.78 |
|
|
|
366 |
|
11/01/22 |
|
10/31/23 |
|
|
20.27 |
|
|
|
0.07 |
|
|
|
(0.65) |
|
|
|
(0.58) |
|
|
|
|
| |
|
(0.24) |
|
|
|
(0.59) |
|
|
|
(0.83) |
|
|
|
18.86 |
|
|
|
0.87 |
|
|
|
0.87 |
|
|
|
0.37 |
|
|
|
112 |
|
|
|
(2.87) |
|
|
|
320 |
|
11/01/21 |
|
10/31/22 |
|
|
27.88 |
|
|
|
0.23 |
|
|
|
(5.02) |
|
|
|
(4.79) |
|
|
|
|
| |
|
(0.02) |
|
|
|
(2.80) |
|
|
|
(2.82) |
|
|
|
20.27 |
|
|
|
0.86 |
|
|
|
0.86 |
|
|
|
1.03 |
|
|
|
159 |
|
|
|
(18.44) |
|
|
|
325 |
|
11/01/20 |
|
10/31/21 |
|
|
20.01 |
|
|
|
0.03 |
|
|
|
8.43 |
|
|
|
8.46 |
|
|
|
|
| |
|
(0.07) |
|
|
|
(0.52) |
|
|
|
(0.59) |
|
|
|
27.88 |
|
|
|
0.86 |
|
|
|
0.86 |
|
|
|
0.11 |
|
|
|
109 |
|
|
|
42.85 |
|
|
|
278 |
|
11/01/19 |
|
10/31/20 |
|
|
18.45 |
|
|
|
0.07 |
|
|
|
1.65 |
|
|
|
1.72 |
|
|
|
|
| |
|
(0.15) |
|
|
|
(0.01) |
|
|
|
(0.16) |
|
|
|
20.01 |
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
0.36 |
|
|
|
109 |
|
|
|
9.38 |
|
|
|
171 |
|
11/01/18 |
|
10/31/19 |
|
|
18.41 |
|
|
|
0.15 |
|
|
|
1.19 |
|
|
|
1.34 |
|
|
|
|
| |
|
(0.11) |
|
|
|
(1.19) |
|
|
|
(1.30) |
|
|
|
18.45 |
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
0.82 |
|
|
|
170 |
|
|
|
8.60 |
|
|
|
108 |
|
|
| |
166 | rjinvestmentmanagement.com |
|
|
Financial
Highlights
PROSPECTUS | 4.26.2024
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Fiscal
period |
|
|
|
|
From investment
operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Scout Small Cap Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 22.06 |
|
|
|
$(0.02) |
|
|
|
$
4.46 |
|
|
|
$
4.44 |
|
|
|
|
| |
|
$
— |
|
|
|
$
— |
|
|
|
$
— |
|
|
|
$
26.50 |
|
|
|
1.25 |
|
|
|
1.29 |
|
|
|
(0.39) |
|
|
|
4 |
|
|
|
20.13 |
|
|
|
$
13 |
|
11/01/22 |
|
10/31/23 |
|
|
25.75 |
|
|
|
(0.15) |
|
|
|
(2.73) |
|
|
|
(2.88) |
|
|
|
|
| |
|
— |
|
|
|
(0.81) |
|
|
|
(0.81) |
|
|
|
22.06 |
|
|
|
1.20 |
|
|
|
1.20 |
|
|
|
(0.61) |
|
|
|
7 |
|
|
|
(11.43) |
|
|
|
11 |
|
11/01/21 |
|
10/31/22 |
|
|
39.48 |
|
|
|
(0.16) |
|
|
|
(7.72) |
|
|
|
(7.88) |
|
|
|
|
| |
|
— |
|
|
|
(5.85) |
|
|
|
(5.85) |
|
|
|
25.75 |
|
|
|
1.18 |
|
|
|
1.18 |
|
|
|
(0.55) |
|
|
|
17 |
|
|
|
(22.53) |
|
|
|
14 |
|
11/01/20 |
|
10/31/21 |
|
|
29.50 |
|
|
|
(0.30) |
|
|
|
13.12 |
|
|
|
12.82 |
|
|
|
|
| |
|
— |
|
|
|
(2.84) |
|
|
|
(2.84) |
|
|
|
39.48 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
(0.80) |
|
|
|
28 |
|
|
|
44.67 |
|
|
|
18 |
|
11/01/19 |
|
10/31/20 |
|
|
28.20 |
|
|
|
(0.16) |
|
|
|
2.56 |
|
|
|
2.40 |
|
|
|
|
| |
|
— |
|
|
|
(1.10) |
|
|
|
(1.10) |
|
|
|
29.50 |
|
|
|
1.19 |
|
|
|
1.19 |
|
|
|
(0.58) |
|
|
|
22 |
|
|
|
8.69 |
|
|
|
12 |
|
11/01/18 |
|
10/31/19 |
|
|
27.10 |
|
|
|
(0.07) |
|
|
|
1.23 |
|
|
|
1.16 |
|
|
|
|
| |
|
— |
|
|
|
(0.06) |
|
|
|
(0.06) |
|
|
|
28.20 |
|
|
|
1.16 |
|
|
|
1.16 |
|
|
|
(0.27) |
|
|
|
21 |
|
|
|
4.30 |
|
|
|
13 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
20.85 |
|
|
|
(0.04) |
|
|
|
4.20 |
|
|
|
4.16 |
|
|
|
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25.01 |
|
|
|
2.00 |
|
|
|
2.04 |
|
|
|
(1.14) |
|
|
|
4 |
|
|
|
19.95 |
|
|
|
1 |
|
11/01/22 |
|
10/31/23 |
|
|
24.56 |
|
|
|
(0.32) |
|
|
|
(2.58) |
|
|
|
(2.90) |
|
|
|
|
| |
|
— |
|
|
|
(0.81) |
|
|
|
(0.81) |
|
|
|
20.85 |
|
|
|
1.94 |
|
|
|
1.94 |
|
|
|
(1.35) |
|
|
|
7 |
|
|
|
(12.08) |
|
|
|
1 |
|
11/01/21 |
|
10/31/22 |
|
|
38.19 |
|
|
|
(0.35) |
|
|
|
(7.43) |
|
|
|
(7.78) |
|
|
|
|
| |
|
— |
|
|
|
(5.85) |
|
|
|
(5.85) |
|
|
|
24.56 |
|
|
|
1.92 |
|
|
|
1.92 |
|
|
|
(1.28) |
|
|
|
17 |
|
|
|
(23.11) |
|
|
|
2 |
|
11/01/20 |
|
10/31/21 |
|
|
28.82 |
|
|
|
(0.56) |
|
|
|
12.77 |
|
|
|
12.21 |
|
|
|
|
| |
|
— |
|
|
|
(2.84) |
|
|
|
(2.84) |
|
|
|
38.19 |
|
|
|
1.91 |
|
|
|
1.91 |
|
|
|
(1.52) |
|
|
|
28 |
|
|
|
43.53 |
|
|
|
3 |
|
11/01/19 |
|
10/31/20 |
|
|
27.78 |
|
|
|
(0.35) |
|
|
|
2.49 |
|
|
|
2.14 |
|
|
|
|
| |
|
— |
|
|
|
(1.10) |
|
|
|
(1.10) |
|
|
|
28.82 |
|
|
|
1.95 |
|
|
|
1.95 |
|
|
|
(1.32) |
|
|
|
22 |
|
|
|
7.85 |
|
|
|
5 |
|
11/01/18 |
|
10/31/19 |
|
|
26.89 |
|
|
|
(0.25) |
|
|
|
1.20 |
|
|
|
0.95 |
|
|
|
|
| |
|
— |
|
|
|
(0.06) |
|
|
|
(0.06) |
|
|
|
27.78 |
|
|
|
1.92 |
|
|
|
1.92 |
|
|
|
(0.92) |
|
|
|
21 |
|
|
|
3.55 |
|
|
|
8 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
22.44 |
|
|
|
(0.00) |
|
|
|
4.53 |
|
|
|
4.53 |
|
|
|
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26.97 |
|
|
|
0.95 |
|
|
|
1.05 |
|
|
|
(0.09) |
|
|
|
4 |
|
|
|
20.19 |
|
|
|
237 |
|
11/01/22 |
|
10/31/23 |
|
|
26.12 |
|
|
|
(0.09) |
|
|
|
(2.78) |
|
|
|
(2.87) |
|
|
|
|
| |
|
— |
|
|
|
(0.81) |
|
|
|
(0.81) |
|
|
|
22.44 |
|
|
|
0.95 |
|
|
|
0.96 |
|
|
|
(0.36) |
|
|
|
7 |
|
|
|
(11.22) |
|
|
|
203 |
|
11/01/21 |
|
10/31/22 |
|
|
39.88 |
|
|
|
(0.09) |
|
|
|
(7.81) |
|
|
|
(7.90) |
|
|
|
|
| |
|
(0.01) |
|
|
|
(5.85) |
|
|
|
(5.86) |
|
|
|
26.12 |
|
|
|
0.94 |
|
|
|
0.94 |
|
|
|
(0.31) |
|
|
|
17 |
|
|
|
(22.33) |
|
|
|
252 |
|
11/01/20 |
|
10/31/21 |
|
|
29.72 |
|
|
|
(0.21) |
|
|
|
13.22 |
|
|
|
13.01 |
|
|
|
|
| |
|
(0.01) |
|
|
|
(2.84) |
|
|
|
(2.85) |
|
|
|
39.88 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
(0.55) |
|
|
|
28 |
|
|
|
45.02 |
|
|
|
362 |
|
11/01/19 |
|
10/31/20 |
|
|
28.34 |
|
|
|
(0.09) |
|
|
|
2.57 |
|
|
|
2.48 |
|
|
|
|
| |
|
— |
|
|
|
(1.10) |
|
|
|
(1.10) |
|
|
|
29.72 |
|
|
|
0.95 |
|
|
|
0.95 |
|
|
|
(0.34) |
|
|
|
22 |
|
|
|
8.93 |
|
|
|
268 |
|
11/01/18 |
|
10/31/19 |
|
|
27.17 |
|
|
|
(0.02) |
|
|
|
1.25 |
|
|
|
1.23 |
|
|
|
|
| |
|
— |
|
|
|
(0.06) |
|
|
|
(0.06) |
|
|
|
28.34 |
|
|
|
0.95 |
|
|
|
0.94 |
|
|
|
(0.06) |
|
|
|
21 |
|
|
|
4.55 |
|
|
|
297 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
22.60 |
|
|
|
0.00 |
|
|
|
4.57 |
|
|
|
4.57 |
|
|
|
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27.17 |
|
|
|
0.85 |
|
|
|
0.95 |
|
|
|
0.01 |
|
|
|
4 |
|
|
|
20.22 |
|
|
|
9 |
|
11/01/22 |
|
10/31/23 |
|
|
26.28 |
|
|
|
(0.07) |
|
|
|
(2.80) |
|
|
|
(2.87) |
|
|
|
|
| |
|
— |
|
|
|
(0.81) |
|
|
|
(0.81) |
|
|
|
22.60 |
|
|
|
0.85 |
|
|
|
0.86 |
|
|
|
(0.26) |
|
|
|
7 |
|
|
|
(11.15) |
|
|
|
7 |
|
11/01/21 |
|
10/31/22 |
|
|
40.06 |
|
|
|
(0.06) |
|
|
|
(7.85) |
|
|
|
(7.91) |
|
|
|
|
| |
|
(0.02) |
|
|
|
(5.85) |
|
|
|
(5.87) |
|
|
|
26.28 |
|
|
|
0.84 |
|
|
|
0.84 |
|
|
|
(0.21) |
|
|
|
17 |
|
|
|
(22.26) |
|
|
|
8 |
|
11/01/20 |
|
10/31/21 |
|
|
29.82 |
|
|
|
(0.17) |
|
|
|
13.27 |
|
|
|
13.10 |
|
|
|
|
| |
|
(0.02) |
|
|
|
(2.84) |
|
|
|
(2.86) |
|
|
|
40.06 |
|
|
|
0.81 |
|
|
|
0.81 |
|
|
|
(0.45) |
|
|
|
28 |
|
|
|
45.16 |
|
|
|
12 |
|
11/01/19 |
|
10/31/20 |
|
|
28.41 |
|
|
|
(0.08) |
|
|
|
2.59 |
|
|
|
2.51 |
|
|
|
|
| |
|
— |
|
|
|
(1.10) |
|
|
|
(1.10) |
|
|
|
29.82 |
|
|
|
0.85 |
|
|
|
0.85 |
|
|
|
(0.30) |
|
|
|
22 |
|
|
|
9.02 |
|
|
|
9 |
|
11/01/18 |
|
10/31/19 |
|
|
27.20 |
|
|
|
— |
(d) |
|
|
1.27 |
|
|
|
1.27 |
|
|
|
|
| |
|
— |
|
|
|
(0.06) |
|
|
|
(0.06) |
|
|
|
28.41 |
|
|
|
0.84 |
|
|
|
0.84 |
|
|
|
0.01 |
|
|
|
21 |
|
|
|
4.69 |
|
|
|
6 |
|
|
| |
| |
rjinvestmentmanagement.com | 167 |
Financial
Highlights
PROSPECTUS | 4.26.2024
|
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|
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| |
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| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Reams Core Bond Fund |
|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
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|
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|
|
Class
A* |
|
| |
|
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| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 10.07 |
|
|
|
$
0.07 |
|
|
|
$
0.85 |
|
|
|
$
0.92 |
|
|
|
|
| |
|
$ (0.11) |
|
|
|
$
— |
|
|
|
$ (0.11) |
|
|
|
$
10.88 |
|
|
|
0.80 |
|
|
|
1.03 |
|
|
|
3.85 |
|
|
|
52 |
|
|
|
9.15 |
|
|
|
$
3 |
|
11/01/22 |
|
10/31/23 |
|
|
10.41 |
|
|
|
0.35 |
|
|
|
(0.36) |
|
|
|
(0.01) |
|
|
|
|
| |
|
(0.33) |
|
|
|
— |
|
|
|
(0.33) |
|
|
|
10.07 |
|
|
|
0.80 |
|
|
|
0.97 |
|
|
|
3.26 |
|
|
|
530 |
|
|
|
(0.21) |
|
|
|
3 |
|
11/01/21 |
|
10/31/22 |
|
|
12.66 |
|
|
|
0.17 |
|
|
|
(2.24) |
|
|
|
(2.07) |
|
|
|
|
| |
|
(0.18) |
|
|
|
— |
|
|
|
(0.18) |
|
|
|
10.41 |
|
|
|
0.80 |
|
|
|
0.95 |
|
|
|
1.45 |
|
|
|
429 |
|
|
|
(16.49) |
|
|
|
4 |
|
11/01/20 |
|
10/31/21 |
|
|
13.14 |
|
|
|
0.06 |
|
|
|
(0.22) |
|
|
|
(0.16) |
|
|
|
|
| |
|
(0.07) |
|
|
|
(0.25) |
|
|
|
(0.32) |
|
|
|
12.66 |
|
|
|
0.80 |
|
|
|
0.93 |
|
|
|
0.47 |
|
|
|
227 |
|
|
|
(1.27) |
|
|
|
4 |
|
11/01/19 |
|
10/31/20 |
|
|
12.02 |
|
|
|
0.12 |
|
|
|
1.40 |
|
|
|
1.52 |
|
|
|
|
| |
|
(0.16) |
|
|
|
(0.24) |
|
|
|
(0.40) |
|
|
|
13.14 |
|
|
|
0.80 |
|
|
|
1.03 |
|
|
|
0.93 |
|
|
|
549 |
|
|
|
12.94 |
|
|
|
4 |
|
11/01/18 |
|
10/31/19 |
|
|
11.03 |
|
|
|
0.22 |
|
|
|
0.99 |
|
|
|
1.21 |
|
|
|
|
| |
|
(0.22) |
|
|
|
— |
|
|
|
(0.22) |
|
|
|
12.02 |
|
|
|
0.80 |
|
|
|
1.20 |
|
|
|
1.85 |
|
|
|
409 |
|
|
|
11.12 |
|
|
|
1 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
10.03 |
|
|
|
0.05 |
|
|
|
0.84 |
|
|
|
0.89 |
|
|
|
|
| |
|
(0.09) |
|
|
|
— |
|
|
|
(0.09) |
|
|
|
10.83 |
|
|
|
1.55 |
|
|
|
1.75 |
|
|
|
3.10 |
|
|
|
52 |
|
|
|
8.88 |
|
|
|
4 |
|
11/01/22 |
|
10/31/23 |
|
|
10.36 |
|
|
|
0.27 |
|
|
|
(0.35) |
|
|
|
(0.08) |
|
|
|
|
| |
|
(0.25) |
|
|
|
— |
|
|
|
(0.25) |
|
|
|
10.03 |
|
|
|
1.55 |
|
|
|
1.70 |
|
|
|
2.52 |
|
|
|
530 |
|
|
|
(0.87) |
|
|
|
3 |
|
11/01/21 |
|
10/31/22 |
|
|
12.60 |
|
|
|
0.07 |
|
|
|
(2.22) |
|
|
|
(2.15) |
|
|
|
|
| |
|
(0.09) |
|
|
|
— |
|
|
|
(0.09) |
|
|
|
10.36 |
|
|
|
1.55 |
|
|
|
1.70 |
|
|
|
0.57 |
|
|
|
429 |
|
|
|
(17.11) |
|
|
|
5 |
|
11/01/20 |
|
10/31/21 |
|
|
13.11 |
|
|
|
(0.04) |
|
|
|
(0.21) |
|
|
|
(0.25) |
|
|
|
|
| |
|
(0.01) |
|
|
|
(0.25) |
|
|
|
(0.26) |
|
|
|
12.60 |
|
|
|
1.55 |
|
|
|
1.67 |
|
|
|
(0.27) |
|
|
|
227 |
|
|
|
(2.01) |
|
|
|
13 |
|
11/01/19 |
|
10/31/20 |
|
|
12.01 |
|
|
|
(0.02) |
|
|
|
1.44 |
|
|
|
1.42 |
|
|
|
|
| |
|
(0.08) |
|
|
|
(0.24) |
|
|
|
(0.32) |
|
|
|
13.11 |
|
|
|
1.55 |
|
|
|
1.72 |
|
|
|
(0.14) |
|
|
|
549 |
|
|
|
12.09 |
|
|
|
11 |
|
11/01/18 |
|
10/31/19 |
|
|
11.02 |
|
|
|
0.13 |
|
|
|
0.99 |
|
|
|
1.12 |
|
|
|
|
| |
|
(0.13) |
|
|
|
— |
|
|
|
(0.13) |
|
|
|
12.01 |
|
|
|
1.55 |
|
|
|
2.00 |
|
|
|
1.09 |
|
|
|
409 |
|
|
|
10.25 |
|
|
|
1 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
10.09 |
|
|
|
0.08 |
|
|
|
0.84 |
|
|
|
0.92 |
|
|
|
|
| |
|
(0.12) |
|
|
|
— |
|
|
|
(0.12) |
|
|
|
10.89 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
4.25 |
|
|
|
52 |
|
|
|
9.14 |
|
|
|
432 |
|
11/01/22 |
|
10/31/23 |
|
|
10.43 |
|
|
|
0.41 |
|
|
|
(0.37) |
|
|
|
0.04 |
|
|
|
|
| |
|
(0.38) |
|
|
|
— |
|
|
|
(0.38) |
|
|
|
10.09 |
|
|
|
0.40 |
|
|
|
0.72 |
|
|
|
3.76 |
|
|
|
530 |
|
|
|
0.19 |
|
|
|
414 |
|
11/01/21 |
|
10/31/22 |
|
|
12.67 |
|
|
|
0.21 |
|
|
|
(2.22) |
|
|
|
(2.01) |
|
|
|
|
| |
|
(0.23) |
|
|
|
— |
|
|
|
(0.23) |
|
|
|
10.43 |
|
|
|
0.40 |
|
|
|
0.72 |
|
|
|
1.82 |
|
|
|
429 |
|
|
|
(16.06) |
|
|
|
308 |
|
11/01/20 |
|
10/31/21 |
|
|
13.16 |
|
|
|
0.11 |
|
|
|
(0.23) |
|
|
|
(0.12) |
|
|
|
|
| |
|
(0.12) |
|
|
|
(0.25) |
|
|
|
(0.37) |
|
|
|
12.67 |
|
|
|
0.40 |
|
|
|
0.70 |
|
|
|
0.88 |
|
|
|
227 |
|
|
|
(0.95) |
|
|
|
447 |
|
11/01/19 |
|
10/31/20 |
|
|
12.04 |
|
|
|
0.15 |
|
|
|
1.41 |
|
|
|
1.56 |
|
|
|
|
| |
|
(0.20) |
|
|
|
(0.24) |
|
|
|
(0.44) |
|
|
|
13.16 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
1.19 |
|
|
|
549 |
|
|
|
13.35 |
|
|
|
552 |
|
11/01/18 |
|
10/31/19 |
|
|
11.04 |
|
|
|
0.26 |
|
|
|
1.01 |
|
|
|
1.27 |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
12.04 |
|
|
|
0.40 |
|
|
|
0.98 |
|
|
|
2.28 |
|
|
|
409 |
|
|
|
11.64 |
|
|
|
105 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
10.10 |
|
|
|
0.08 |
|
|
|
0.84 |
|
|
|
0.92 |
|
|
|
|
| |
|
(0.12) |
|
|
|
— |
|
|
|
(0.12) |
|
|
|
10.90 |
|
|
|
0.40 |
|
|
|
0.66 |
|
|
|
4.25 |
|
|
|
52 |
|
|
|
9.13 |
|
|
|
16 |
|
11/01/22 |
|
10/31/23 |
|
|
10.44 |
|
|
|
0.41 |
|
|
|
(0.37) |
|
|
|
0.04 |
|
|
|
|
| |
|
(0.38) |
|
|
|
— |
|
|
|
(0.38) |
|
|
|
10.10 |
|
|
|
0.40 |
|
|
|
0.63 |
|
|
|
3.83 |
|
|
|
530 |
|
|
|
0.19 |
|
|
|
15 |
|
11/01/21 |
|
10/31/22 |
|
|
12.68 |
|
|
|
0.25 |
|
|
|
(2.26) |
|
|
|
(2.01) |
|
|
|
|
| |
|
(0.23) |
|
|
|
— |
|
|
|
(0.23) |
|
|
|
10.44 |
|
|
|
0.40 |
|
|
|
0.62 |
|
|
|
2.16 |
|
|
|
429 |
|
|
|
(16.03) |
|
|
|
4 |
|
11/01/20 |
|
10/31/21 |
|
|
13.16 |
|
|
|
0.11 |
|
|
|
(0.22) |
|
|
|
(0.11) |
|
|
|
|
| |
|
(0.12) |
|
|
|
(0.25) |
|
|
|
(0.37) |
|
|
|
12.68 |
|
|
|
0.40 |
|
|
|
0.59 |
|
|
|
0.87 |
|
|
|
227 |
|
|
|
(0.88) |
|
|
|
1 |
|
11/01/19 |
|
10/31/20 |
|
|
12.04 |
|
|
|
0.12 |
|
|
|
1.44 |
|
|
|
1.56 |
|
|
|
|
| |
|
(0.20) |
|
|
|
(0.24) |
|
|
|
(0.44) |
|
|
|
13.16 |
|
|
|
0.40 |
|
|
|
0.72 |
|
|
|
0.92 |
|
|
|
549 |
|
|
|
13.35 |
|
|
|
1 |
|
11/01/18 |
|
10/31/19 |
|
|
11.05 |
|
|
|
0.26 |
|
|
|
1.00 |
|
|
|
1.26 |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
12.04 |
|
|
|
0.40 |
|
|
|
1.46 |
|
|
|
2.26 |
|
|
|
409 |
|
|
|
11.53 |
|
|
|
0 |
|
|
| |
168 | rjinvestmentmanagement.com |
|
|
Financial
Highlights
PROSPECTUS | 4.26.2024
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Fiscal
period |
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From investment operations |
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Dividends &
distributions |
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Ratios
to average net asset (%) |
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Beginning net asset value |
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Income (loss) |
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Realized & unrealized gain
(loss) |
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Total |
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From investment income |
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From realized gains |
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Total |
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Ending net asset value |
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With expenses waived/ recovered (a) |
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Without expenses waived/ recovered (a) |
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Net income (loss) (a) |
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Portfolio turnover rate (%) (b) |
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Total return (%) (b)(c) |
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Ending net assets (millions) |
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Beginning |
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Ending |
Carillon Reams Core Plus Bond Fund |
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Class
A* |
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| |
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| |
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11/01/23 |
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12/31/23 |
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$ 27.66 |
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$
0.19 |
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$
2.42 |
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$
2.61 |
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| |
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$ (0.31) |
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$
— |
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$ (0.31) |
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$
29.96 |
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|
0.80 |
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0.91 |
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3.94 |
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|
49 |
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9.46 |
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$
5 |
|
11/01/22 |
|
10/31/23 |
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|
28.81 |
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|
1.04 |
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(0.84) |
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0.20 |
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| |
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(1.35) |
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— |
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(1.35) |
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|
27.66 |
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|
0.80 |
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|
0.90 |
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3.50 |
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|
532 |
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0.51 |
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4 |
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11/01/21 |
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10/31/22 |
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34.45 |
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|
0.53 |
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(5.67) |
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(5.14) |
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| |
|
(0.50) |
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— |
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|
(0.50) |
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|
28.81 |
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|
0.80 |
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|
0.90 |
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|
1.63 |
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|
413 |
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(15.06) |
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3 |
|
11/01/20 |
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10/31/21 |
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|
36.57 |
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|
0.23 |
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(0.60) |
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|
(0.37) |
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| |
|
(0.38) |
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|
(1.37) |
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|
(1.75) |
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|
34.45 |
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|
0.80 |
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|
0.90 |
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|
0.65 |
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|
220 |
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|
(1.12) |
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7 |
|
11/01/19 |
|
10/31/20 |
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|
33.43 |
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|
0.40 |
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|
3.99 |
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|
4.39 |
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| |
|
(0.64) |
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|
(0.61) |
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|
(1.25) |
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|
36.57 |
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|
0.80 |
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|
0.90 |
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|
1.09 |
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|
559 |
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|
13.56 |
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6 |
|
11/01/18 |
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10/31/19 |
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30.44 |
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|
0.58 |
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|
3.01 |
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|
3.59 |
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| |
|
(0.60) |
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— |
|
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|
(0.60) |
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|
33.43 |
|
|
|
0.80 |
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|
|
0.98 |
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|
|
1.79 |
|
|
|
413 |
|
|
|
11.89 |
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0 |
|
Class
C* |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
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| |
|
| |
11/01/23 |
|
12/31/23 |
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|
27.44 |
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|
|
0.15 |
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|
|
2.40 |
|
|
|
2.55 |
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|
| |
|
(0.25) |
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|
— |
|
|
|
(0.25) |
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|
29.74 |
|
|
|
1.55 |
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|
1.66 |
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|
3.19 |
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|
49 |
|
|
|
9.33 |
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|
4 |
|
11/01/22 |
|
10/31/23 |
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|
28.59 |
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|
0.80 |
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|
|
(0.81) |
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|
|
(0.01) |
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|
|
| |
|
(1.14) |
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|
— |
|
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|
(1.14) |
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|
27.44 |
|
|
|
1.55 |
|
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|
1.65 |
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|
|
2.71 |
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|
532 |
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|
(0.24) |
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4 |
|
11/01/21 |
|
10/31/22 |
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|
34.35 |
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|
0.31 |
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|
|
(5.66) |
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|
|
(5.35) |
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|
|
|
| |
|
(0.41) |
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|
|
— |
|
|
|
(0.41) |
|
|
|
28.59 |
|
|
|
1.55 |
|
|
|
1.67 |
|
|
|
0.96 |
|
|
|
413 |
|
|
|
(15.69) |
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|
|
4 |
|
11/01/20 |
|
10/31/21 |
|
|
36.55 |
|
|
|
(0.04) |
|
|
|
(0.60) |
|
|
|
(0.64) |
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|
|
|
| |
|
(0.19) |
|
|
|
(1.37) |
|
|
|
(1.56) |
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|
|
34.35 |
|
|
|
1.55 |
|
|
|
1.67 |
|
|
|
(0.11) |
|
|
|
220 |
|
|
|
(1.87) |
|
|
|
6 |
|
11/01/19 |
|
10/31/20 |
|
|
33.38 |
|
|
|
0.11 |
|
|
|
4.06 |
|
|
|
4.17 |
|
|
|
|
| |
|
(0.39) |
|
|
|
(0.61) |
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|
|
(1.00) |
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|
|
36.55 |
|
|
|
1.55 |
|
|
|
1.66 |
|
|
|
0.30 |
|
|
|
559 |
|
|
|
12.84 |
|
|
|
5 |
|
11/01/18 |
|
10/31/19 |
|
|
30.41 |
|
|
|
0.34 |
|
|
|
3.00 |
|
|
|
3.34 |
|
|
|
|
| |
|
(0.37) |
|
|
|
— |
|
|
|
(0.37) |
|
|
|
33.38 |
|
|
|
1.55 |
|
|
|
1.78 |
|
|
|
1.05 |
|
|
|
413 |
|
|
|
11.06 |
|
|
|
0 |
|
Class
I* |
|
| |
|
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| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
27.76 |
|
|
|
0.21 |
|
|
|
2.43 |
|
|
|
2.64 |
|
|
|
|
| |
|
(0.33) |
|
|
|
— |
|
|
|
(0.33) |
|
|
|
30.07 |
|
|
|
0.40 |
|
|
|
0.66 |
|
|
|
4.34 |
|
|
|
49 |
|
|
|
9.57 |
|
|
|
1,502 |
|
11/01/22 |
|
10/31/23 |
|
|
28.91 |
|
|
|
1.16 |
|
|
|
(0.84) |
|
|
|
0.32 |
|
|
|
|
| |
|
(1.47) |
|
|
|
— |
|
|
|
(1.47) |
|
|
|
27.76 |
|
|
|
0.40 |
|
|
|
0.64 |
|
|
|
3.90 |
|
|
|
532 |
|
|
|
0.91 |
|
|
|
1,346 |
|
11/01/21 |
|
10/31/22 |
|
|
34.54 |
|
|
|
0.70 |
|
|
|
(5.74) |
|
|
|
(5.04) |
|
|
|
|
| |
|
(0.59) |
|
|
|
— |
|
|
|
(0.59) |
|
|
|
28.91 |
|
|
|
0.40 |
|
|
|
0.65 |
|
|
|
2.17 |
|
|
|
413 |
|
|
|
(14.74) |
|
|
|
980 |
|
11/01/20 |
|
10/31/21 |
|
|
36.64 |
|
|
|
0.37 |
|
|
|
(0.59) |
|
|
|
(0.22) |
|
|
|
|
| |
|
(0.51) |
|
|
|
(1.37) |
|
|
|
(1.88) |
|
|
|
34.54 |
|
|
|
0.40 |
|
|
|
0.65 |
|
|
|
1.04 |
|
|
|
220 |
|
|
|
(0.71) |
|
|
|
1,142 |
|
11/01/19 |
|
10/31/20 |
|
|
33.45 |
|
|
|
0.60 |
|
|
|
3.96 |
|
|
|
4.56 |
|
|
|
|
| |
|
(0.76) |
|
|
|
(0.61) |
|
|
|
(1.37) |
|
|
|
36.64 |
|
|
|
0.40 |
|
|
|
0.65 |
|
|
|
1.72 |
|
|
|
559 |
|
|
|
14.11 |
|
|
|
1,132 |
|
11/01/18 |
|
10/31/19 |
|
|
30.46 |
|
|
|
0.72 |
|
|
|
2.99 |
|
|
|
3.71 |
|
|
|
|
| |
|
(0.72) |
|
|
|
— |
|
|
|
(0.72) |
|
|
|
33.45 |
|
|
|
0.40 |
|
|
|
0.66 |
|
|
|
2.23 |
|
|
|
413 |
|
|
|
12.32 |
|
|
|
635 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
27.77 |
|
|
|
0.21 |
|
|
|
2.42 |
|
|
|
2.63 |
|
|
|
|
| |
|
(0.33) |
|
|
|
— |
|
|
|
(0.33) |
|
|
|
30.07 |
|
|
|
0.40 |
|
|
|
0.57 |
|
|
|
4.34 |
|
|
|
49 |
|
|
|
9.53 |
|
|
|
52 |
|
11/01/22 |
|
10/31/23 |
|
|
28.92 |
|
|
|
1.28 |
|
|
|
(0.96) |
|
|
|
0.32 |
|
|
|
|
| |
|
(1.47) |
|
|
|
— |
|
|
|
(1.47) |
|
|
|
27.77 |
|
|
|
0.40 |
|
|
|
0.57 |
|
|
|
4.30 |
|
|
|
532 |
|
|
|
0.90 |
|
|
|
47 |
|
11/01/21 |
|
10/31/22 |
|
|
34.54 |
|
|
|
0.77 |
|
|
|
(5.80) |
|
|
|
(5.03) |
|
|
|
|
| |
|
(0.59) |
|
|
|
— |
|
|
|
(0.59) |
|
|
|
28.92 |
|
|
|
0.40 |
|
|
|
0.56 |
|
|
|
2.42 |
|
|
|
413 |
|
|
|
(14.71) |
|
|
|
5 |
|
11/01/20 |
|
10/31/21 |
|
|
36.65 |
|
|
|
0.37 |
|
|
|
(0.60) |
|
|
|
(0.23) |
|
|
|
|
| |
|
(0.51) |
|
|
|
(1.37) |
|
|
|
(1.88) |
|
|
|
34.54 |
|
|
|
0.40 |
|
|
|
0.56 |
|
|
|
1.06 |
|
|
|
220 |
|
|
|
(0.74) |
|
|
|
4 |
|
11/01/19 |
|
10/31/20 |
|
|
33.45 |
|
|
|
0.59 |
|
|
|
3.98 |
|
|
|
4.57 |
|
|
|
|
| |
|
(0.76) |
|
|
|
(0.61) |
|
|
|
(1.37) |
|
|
|
36.65 |
|
|
|
0.40 |
|
|
|
0.93 |
|
|
|
1.63 |
|
|
|
559 |
|
|
|
14.14 |
|
|
|
0 |
|
11/01/18 |
|
10/31/19 |
|
|
30.46 |
|
|
|
0.71 |
|
|
|
3.00 |
|
|
|
3.71 |
|
|
|
|
| |
|
(0.72) |
|
|
|
— |
|
|
|
(0.72) |
|
|
|
33.45 |
|
|
|
0.40 |
|
|
|
1.18 |
|
|
|
2.22 |
|
|
|
413 |
|
|
|
12.32 |
|
|
|
0 |
|
|
| |
| |
rjinvestmentmanagement.com | 169 |
Financial
Highlights
PROSPECTUS | 4.26.2024
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| |
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|
| |
Fiscal
period |
|
|
|
|
From investment operations |
|
|
|
|
|
Dividends &
distributions |
|
|
|
|
|
Ratios
to average net asset (%) |
|
|
|
|
|
|
|
|
|
|
|
Beginning net asset value |
|
|
Income (loss) |
|
|
Realized & unrealized gain
(loss) |
|
|
Total |
|
|
|
|
|
From investment income |
|
|
From realized gains |
|
|
Total |
|
|
Ending net asset value |
|
|
With expenses waived/ recovered (a) |
|
|
Without expenses waived/ recovered (a) |
|
|
Net income (loss) (a) |
|
|
Portfolio turnover rate (%) (b) |
|
|
Total return (%) (b)(c) |
|
|
Ending net assets (millions) |
|
Beginning |
|
Ending |
Carillon Reams Unconstrained Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
$ 11.53 |
|
|
|
$
0.08 |
|
|
|
$
0.74 |
|
|
|
$
0.82 |
|
|
|
|
| |
|
$ (0.12) |
|
|
|
$
— |
|
|
|
$ (0.12) |
|
|
|
$
12.23 |
|
|
|
0.80 |
|
|
|
1.10 |
|
|
|
3.76 |
|
|
|
49 |
|
|
|
7.15 |
|
|
|
$
6 |
|
11/01/22 |
|
10/31/23 |
|
|
11.53 |
|
|
|
0.42 |
|
|
|
0.12 |
|
|
|
0.54 |
|
|
|
|
| |
|
(0.54) |
|
|
|
— |
|
|
|
(0.54) |
|
|
|
11.53 |
|
|
|
0.80 |
|
|
|
1.09 |
|
|
|
3.54 |
|
|
|
458 |
|
|
|
4.61 |
|
|
|
6 |
|
11/01/21 |
|
10/31/22 |
|
|
12.79 |
|
|
|
0.20 |
|
|
|
(1.20) |
|
|
|
(1.00) |
|
|
|
|
| |
|
(0.13) |
|
|
|
(0.13) |
|
|
|
(0.26) |
|
|
|
11.53 |
|
|
|
0.80 |
|
|
|
1.08 |
|
|
|
1.67 |
|
|
|
273 |
|
|
|
(7.90) |
|
|
|
5 |
|
11/01/20 |
|
10/31/21 |
|
|
12.81 |
|
|
|
0.06 |
|
|
|
0.17 |
|
|
|
0.23 |
|
|
|
|
| |
|
(0.25) |
|
|
|
— |
|
|
|
(0.25) |
|
|
|
12.79 |
|
|
|
0.80 |
|
|
|
1.08 |
|
|
|
0.46 |
|
|
|
80 |
|
|
|
1.78 |
|
|
|
5 |
|
11/01/19 |
|
10/31/20 |
|
|
12.13 |
|
|
|
0.19 |
|
|
|
0.76 |
|
|
|
0.95 |
|
|
|
|
| |
|
(0.27) |
|
|
|
— |
|
|
|
(0.27) |
|
|
|
12.81 |
|
|
|
0.80 |
|
|
|
1.09 |
|
|
|
1.56 |
|
|
|
435 |
|
|
|
7.97 |
|
|
|
1 |
|
11/01/18 |
|
10/31/19 |
|
|
11.45 |
|
|
|
0.21 |
|
|
|
0.69 |
|
|
|
0.90 |
|
|
|
|
| |
|
(0.22) |
|
|
|
— |
|
|
|
(0.22) |
|
|
|
12.13 |
|
|
|
0.80 |
|
|
|
1.14 |
|
|
|
1.74 |
|
|
|
289 |
|
|
|
7.92 |
|
|
|
0 |
|
Class
C* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
11.42 |
|
|
|
0.06 |
|
|
|
0.74 |
|
|
|
0.80 |
|
|
|
|
| |
|
(0.10) |
|
|
|
— |
|
|
|
(0.10) |
|
|
|
12.12 |
|
|
|
1.55 |
|
|
|
1.86 |
|
|
|
3.00 |
|
|
|
49 |
|
|
|
7.02 |
|
|
|
1 |
|
11/01/22 |
|
10/31/23 |
|
|
11.44 |
|
|
|
0.32 |
|
|
|
0.11 |
|
|
|
0.43 |
|
|
|
|
| |
|
(0.45) |
|
|
|
— |
|
|
|
(0.45) |
|
|
|
11.42 |
|
|
|
1.55 |
|
|
|
1.85 |
|
|
|
2.72 |
|
|
|
458 |
|
|
|
3.70 |
|
|
|
1 |
|
11/01/21 |
|
10/31/22 |
|
|
12.72 |
|
|
|
0.11 |
|
|
|
(1.18) |
|
|
|
(1.07) |
|
|
|
|
| |
|
(0.08) |
|
|
|
(0.13) |
|
|
|
(0.21) |
|
|
|
11.44 |
|
|
|
1.55 |
|
|
|
1.86 |
|
|
|
0.90 |
|
|
|
273 |
|
|
|
(8.53) |
|
|
|
2 |
|
11/01/20 |
|
10/31/21 |
|
|
12.79 |
|
|
|
(0.02) |
|
|
|
0.15 |
|
|
|
0.13 |
|
|
|
|
| |
|
(0.20) |
|
|
|
— |
|
|
|
(0.20) |
|
|
|
12.72 |
|
|
|
1.55 |
|
|
|
1.86 |
|
|
|
(0.13) |
|
|
|
80 |
|
|
|
1.02 |
|
|
|
2 |
|
11/01/19 |
|
10/31/20 |
|
|
12.10 |
|
|
|
0.10 |
|
|
|
0.77 |
|
|
|
0.87 |
|
|
|
|
| |
|
(0.18) |
|
|
|
— |
|
|
|
(0.18) |
|
|
|
12.79 |
|
|
|
1.55 |
|
|
|
1.88 |
|
|
|
0.77 |
|
|
|
435 |
|
|
|
7.25 |
|
|
|
2 |
|
11/01/18 |
|
10/31/19 |
|
|
11.42 |
|
|
|
0.11 |
|
|
|
0.71 |
|
|
|
0.82 |
|
|
|
|
| |
|
(0.14) |
|
|
|
— |
|
|
|
(0.14) |
|
|
|
12.10 |
|
|
|
1.55 |
|
|
|
1.96 |
|
|
|
0.92 |
|
|
|
289 |
|
|
|
7.19 |
|
|
|
0 |
|
Class
I* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
11.55 |
|
|
|
0.08 |
|
|
|
0.75 |
|
|
|
0.83 |
|
|
|
|
| |
|
(0.13) |
|
|
|
— |
|
|
|
(0.13) |
|
|
|
12.25 |
|
|
|
0.50 |
|
|
|
0.87 |
|
|
|
4.04 |
|
|
|
49 |
|
|
|
7.21 |
|
|
|
1,280 |
|
11/01/22 |
|
10/31/23 |
|
|
11.56 |
|
|
|
0.46 |
|
|
|
0.10 |
|
|
|
0.56 |
|
|
|
|
| |
|
(0.57) |
|
|
|
— |
|
|
|
(0.57) |
|
|
|
11.55 |
|
|
|
0.50 |
|
|
|
0.86 |
|
|
|
3.86 |
|
|
|
458 |
|
|
|
4.82 |
|
|
|
1,143 |
|
11/01/21 |
|
10/31/22 |
|
|
12.80 |
|
|
|
0.24 |
|
|
|
(1.19) |
|
|
|
(0.95) |
|
|
|
|
| |
|
(0.16) |
|
|
|
(0.13) |
|
|
|
(0.29) |
|
|
|
11.56 |
|
|
|
0.50 |
|
|
|
0.85 |
|
|
|
1.97 |
|
|
|
273 |
|
|
|
(7.55) |
|
|
|
935 |
|
11/01/20 |
|
10/31/21 |
|
|
12.81 |
|
|
|
0.12 |
|
|
|
0.15 |
|
|
|
0.27 |
|
|
|
|
| |
|
(0.28) |
|
|
|
— |
|
|
|
(0.28) |
|
|
|
12.80 |
|
|
|
0.50 |
|
|
|
0.85 |
|
|
|
0.92 |
|
|
|
80 |
|
|
|
2.08 |
|
|
|
1,110 |
|
11/01/19 |
|
10/31/20 |
|
|
12.12 |
|
|
|
0.23 |
|
|
|
0.76 |
|
|
|
0.99 |
|
|
|
|
| |
|
(0.30) |
|
|
|
— |
|
|
|
(0.30) |
|
|
|
12.81 |
|
|
|
0.50 |
|
|
|
0.85 |
|
|
|
1.86 |
|
|
|
435 |
|
|
|
8.36 |
|
|
|
878 |
|
11/01/18 |
|
10/31/19 |
|
|
11.43 |
|
|
|
0.24 |
|
|
|
0.70 |
|
|
|
0.94 |
|
|
|
|
| |
|
(0.25) |
|
|
|
— |
|
|
|
(0.25) |
|
|
|
12.12 |
|
|
|
0.50 |
|
|
|
0.85 |
|
|
|
2.07 |
|
|
|
289 |
|
|
|
8.31 |
|
|
|
907 |
|
Class
R-6* |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
11/01/23 |
|
12/31/23 |
|
|
11.55 |
|
|
|
0.08 |
|
|
|
0.75 |
|
|
|
0.83 |
|
|
|
|
| |
|
(0.13) |
|
|
|
— |
|
|
|
(0.13) |
|
|
|
12.25 |
|
|
|
0.40 |
|
|
|
0.78 |
|
|
|
4.16 |
|
|
|
49 |
|
|
|
7.24 |
|
|
|
101 |
|
11/01/22 |
|
10/31/23 |
|
|
11.56 |
|
|
|
0.47 |
|
|
|
0.10 |
|
|
|
0.57 |
|
|
|
|
| |
|
(0.58) |
|
|
|
— |
|
|
|
(0.58) |
|
|
|
11.55 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
3.90 |
|
|
|
458 |
|
|
|
4.92 |
|
|
|
90 |
|
11/01/21 |
|
10/31/22 |
|
|
12.80 |
|
|
|
0.26 |
|
|
|
(1.20) |
|
|
|
(0.94) |
|
|
|
|
| |
|
(0.17) |
|
|
|
(0.13) |
|
|
|
(0.30) |
|
|
|
11.56 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
2.15 |
|
|
|
273 |
|
|
|
(7.46) |
|
|
|
91 |
|
11/01/20 |
|
10/31/21 |
|
|
12.81 |
|
|
|
0.13 |
|
|
|
0.15 |
|
|
|
0.28 |
|
|
|
|
| |
|
(0.29) |
|
|
|
— |
|
|
|
(0.29) |
|
|
|
12.80 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
1.01 |
|
|
|
80 |
|
|
|
2.17 |
|
|
|
68 |
|
11/01/19 |
|
10/31/20 |
|
|
12.12 |
|
|
|
0.24 |
|
|
|
0.77 |
|
|
|
1.01 |
|
|
|
|
| |
|
(0.32) |
|
|
|
— |
|
|
|
(0.32) |
|
|
|
12.81 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
1.97 |
|
|
|
435 |
|
|
|
8.47 |
|
|
|
43 |
|
11/01/18 |
|
10/31/19 |
|
|
11.43 |
|
|
|
0.26 |
|
|
|
0.69 |
|
|
|
0.95 |
|
|
|
|
| |
|
(0.26) |
|
|
|
— |
|
|
|
(0.26) |
|
|
|
12.12 |
|
|
|
0.40 |
|
|
|
0.76 |
|
|
|
2.17 |
|
|
|
289 |
|
|
|
8.42 |
|
|
|
34 |
|
* Per share amounts have been calculated using the
daily average share method.
(a) Annualized for periods less than one year.
(b) Not annualized for periods less than one year.
(c) Total returns are calculated without the
imposition of either front-end or contingent deferred sales charges.
(d) Per share amount is less than $0.005.
|
| |
170 | rjinvestmentmanagement.com |
|
|
For
More Information
More
information on these funds is available free upon request, including the
following:
Statement of additional information (“SAI”) |
Additional information about each fund and its policies may be found in the SAI.
A current SAI is on file with the Securities and Exchange Commission
(“Commission”) and is incorporated herein by reference (meaning it is legally
considered part of this Prospectus).
Shareholder reports | Additional information
about each fund’s investments is available in the fund’s annual and semi-annual
reports to shareholders and in Form N-CSR. In a fund’s annual report, you will
find a discussion of the market conditions and investment strategies that
significantly affected a fund’s performance during its last fiscal year. In Form
N-CSR, you will find a fund’s annual and semi-annual financial statements.
To
obtain the SAI, Prospectus, annual report, semiannual report, N-CSR, privacy
notice, performance information, an account application, a schedule of portfolio
holdings found on Form N‑PORT, other information or to make an inquiry, without
charge, contact the Carillon Family of Funds:
|
| |
By mail: |
|
P.O. Box 23572 |
| |
St. Petersburg, FL 33742 |
| |
By telephone: |
|
1.800.421.4184 |
| |
By internet: |
|
rjinvestmentmanagement.com |
These
documents and other information about the funds can be viewed on‑screen or
downloaded from the EDGAR Database on the Commission’s Internet website at
www.sec.gov; or after paying a duplicating fee, by electronic request at the
following email address:
[email protected].
The
Carillon Family of Funds is pleased to offer the convenience of viewing
shareholder communications, including fund prospectuses, annual reports, and
proxy statements, online at rjinvestmentmanagement.com.
The
Investment Company and Securities Act registration numbers are:
|
|
|
| |
Investment Company Act |
|
|
811‑07470 |
|
| |
Securities Act |
|
|
033-57986 |
|
No
dealer, salesperson or other person has been authorized to give any information
or to make any representation other than that contained in this Prospectus in
connection with the offer contained in this Prospectus, and, if given or made,
such other information or representations must not be relied upon unless having
been authorized by the funds or their distributor. This Prospectus does not
constitute an offering in any state in which such offering may not lawfully be
made.
|
| |
| |
rjinvestmentmanagement.com | 171 |