485BPOS
JOHCM
CREDIT INCOME FUND
Institutional
Shares (JOCIX)
Advisor
Shares (JOCEX)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
JOHCM
EMERGING MARKETS
OPPORTUNITIES
FUND
Institutional
Shares (JOEMX)
Advisor
Shares (JOEIX)
Investor
Shares (JOEAX)
Class Z
Shares (Not currently offered)
JOHCM
GLOBAL SELECT FUND
Institutional
Shares (JOGIX)
Advisor
Shares (JOGEX)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
JOHCM
INTERNATIONAL SELECT FUND
Institutional
Shares (JOHIX)
Investor
Shares (JOHAX)
Class Z
Shares (Not currently offered)
TSW
EMERGING MARKETS FUND
Institutional
Shares (TSWMX)
Advisor
Shares (Not currently offered)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
TSW
LARGE CAP VALUE FUND
Institutional
Shares (TSWEX)
Advisor
Shares (Not currently offered)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
JOHCM
EMERGING MARKETS DISCOVERY FUND
(formerly,
JOHCM Emerging Markets Small Mid Cap Equity Fund)
Institutional
Shares (JOMMX)
Advisor
Shares (JOMEX)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
JOHCM
GLOBAL INCOME BUILDER FUND
Institutional
Shares (JOBIX)
Advisor
Shares (JOFIX)
Investor
Shares (JOIIX)
Class Z
Shares (Not currently offered)
JOHCM
INTERNATIONAL OPPORTUNITIES FUND
Institutional
Shares (JOPSX)
Advisor
Shares (Not currently offered)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
REGNAN
GLOBAL EQUITY IMPACT SOLUTIONS
Institutional
Shares (REGIX)
Advisor
Shares (Not currently offered)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
TSW
HIGH YIELD BOND FUND
Institutional
Shares (TSWHX)
Advisor
Shares (Not currently offered)
Investor
Shares (Not currently offered)
Class Z
Shares (Not currently offered)
PROSPECTUS
DATED JANUARY 27,
2023
THE
SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
TABLE
OF CONTENTS
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FUND SUMMARY
JOHCM
Credit Income Fund
Investment
Objective
The
investment objective of the JOHCM Credit Income Fund (the “Fund”) is to preserve
capital and deliver returns through a combination of income and modest capital
appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
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Institutional Shares |
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Advisor Shares |
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Investor Shares |
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Class Z Shares |
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Shareholder Fees (Fees paid directly from
your investment) |
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Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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None |
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None |
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None |
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None |
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Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
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None |
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None |
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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 |
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(Expenses that you pay each
year as a percentage of the value of your
investment) |
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Management
Fee |
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0.55 |
% |
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0.55 |
% |
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0.55 |
% |
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0.55 |
% |
Distribution
(Rule 12b‑1) Fees |
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None |
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0.10 |
% |
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0.25 |
% |
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None |
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Other
Expenses1 |
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1.66 |
% |
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1.66 |
% |
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1.66 |
% |
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1.66 |
% |
Acquired
Fund Fees and Expenses2 |
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0.02 |
% |
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0.02 |
% |
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0.02 |
% |
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0.02 |
% |
Total
Annual Fund Operating Expenses |
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2.23 |
% |
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2.33 |
% |
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2.48 |
% |
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2.23 |
% |
Fee
Waivers and Reimbursements3 |
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(1.63 |
%) |
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(1.63 |
%) |
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(1.63 |
%) |
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(1.63 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
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0.60 |
% |
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0.70 |
% |
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0.85 |
% |
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0.60 |
% |
1 |
Restated to reflect current
expenses. |
2 |
Expenses
associated with investments in underlying investment companies are
excluded from the contractual expense
limitation. |
3 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.58%,
0.68%, 0.83%, and 0.58% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at |
1
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the time of the waiver
or reimbursement. The agreement to waive fees and reimburse expenses may
be terminated by the Board of Trustees at any time and will terminate
automatically upon termination of the Investment Advisory Agreement. Total
Annual Fund Operating Expenses After Fee Waivers and Reimbursements may
exceed 0.58%, 0.68%, 0.83%, and 0.58% for Institutional Shares, Advisor
Shares, Investor Shares, and Class Z Shares, respectively, due to
certain excluded expenses. |
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
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1 year |
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3 years |
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5 years |
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10 years |
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Institutional
Shares |
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$ |
61 |
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$ |
540 |
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$ |
1,045 |
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$ |
2,437 |
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Advisor
Shares |
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$ |
72 |
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$ |
571 |
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$ |
1,097 |
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$ |
2,540 |
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Investor
Shares |
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$ |
87 |
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$ |
616 |
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$ |
1,173 |
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$ |
2,692 |
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Class Z
Shares |
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$ |
61 |
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$ |
540 |
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$ |
1,045 |
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$ |
2,437 |
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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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 48.18% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in fixed income
securities. The fixed income investments give exposure to a wide range of
maturities and can include investment grade corporate debt, high yield
securities (higher risk, lower rated fixed income securities rated below BBB‑ by
S&P or below Baa3 by Moody’s, also known as “junk bonds”), convertible bonds
(including contingent convertible bonds), floating-rate debt, collateralized
debt, municipal debt, non‑U.S. debt (including in emerging markets), commercial
paper, loans and loan participations. The Fund may also gain exposure to up to
10% of equity securities, including through depositary receipts, issued by
companies of any size. The Fund expects to invest in preferred stock, which it
considers similar to fixed income securities (including for purposes of the 80%
test above). The Fund intends to invest in non‑U.S. debt (including in emerging
markets). The Fund may also seek to obtain exposure to fixed income investments
through investments in affiliated or unaffiliated investment companies,
including exchange-traded funds (“ETFs”) and closed‑end funds.
The
portfolio managers seek to build a portfolio that reflects their investment
views across the fixed income markets that is consistent with the Fund’s
objective of preserving capital and delivering returns through a combination of
income and modest capital appreciation. The portfolio managers seek to identify
resilient income streams by evaluating credit investments on factors such
as: (1) a business’s durability and capacity to avoid permanent impairment
of capital; (2) a company’s financial position, particularly its cash flow,
stability of revenues and cost structure; and (3) an investment’s corporate
and legal structure.
2
The
Fund typically invests across a wide range of maturities. As market conditions
change, the volatility and attractiveness of sectors, securities, and strategies
can change as well. To optimize the Fund’s risk/return, the portfolio managers
may dynamically adjust the mix of different asset class
exposures.
The
Fund retains the flexibility to enter into derivatives transactions and various
other hedging assets that the portfolio managers believe will reduce the overall
volatility of the Fund, protecting capital, in certain market environments. The
Fund may also use hedging and derivative instruments to reduce certain risk
exposures present in the Fund’s holdings. The Fund may also engage in short
sales or take short positions for hedging or other investment
purposes.
The
Fund is permitted to invest in contingent securities structured as contingent
convertible securities also known as “CoCos.” A contingent convertible security
is a hybrid debt security either convertible into equity at a predetermined
share price or written down in value based on the specific terms of the
individual security if a pre‑specified trigger event occurs (the “Trigger
Event”), such as a decline in the issuer’s capital below a specified threshold
or increase in the issuer’s risk-weighted
assets.
When
the portfolio managers believe that asset prices are attractive (for example,
during widespread market selloffs), the portfolio managers may use leverage in
an amount up to 15% of the Fund’s total assets in order to increase market
exposure and pursue additional investments in such
assets.
Additionally,
as part of the research process, the portfolio managers consider financially
material environmental, social and governance (“ESG”) factors, including
potential impacts on the long-term risk and return profile of a company. Such
factors, alongside other relevant factors, may be taken into account in the
Fund’s securities selection
process.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on
your investment in the Fund, or the Fund could perform worse than other
investments. Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they
appear.
Credit
Risk. An issuer of debt securities may fail to make interest
payments or repay principal when due, in whole or in part. Changes in an
issuer’s financial strength or in a security’s credit rating may affect a
security’s value.
Interest Rate
Risk. When interest rates increase, fixed income securities or
instruments held by the Fund will generally decline in value. When interest
rates fall, the value of fixed income securities generally increase. Long-term
fixed income securities or instruments will normally have more price volatility
because of this risk than short term fixed income securities or instruments. The
risks associated with changing interest rates may have unpredictable effects on
the markets and the Fund’s investments. Fluctuations in interest rates may also
affect the liquidity of fixed income securities and instruments held by the
Fund. Your investment will decline in value if the value of the Fund’s
investments decreases. Recently, there have been inflationary price movements,
which have caused the fixed income securities markets to experience heightened
levels of interest rate volatility and liquidity risk. The risks associated with
rising interest rates may be particularly acute in the current market
environment because the Federal Reserve Board recently raised rates and may
continue to do so.
Focused Investment
Risk. Focusing investments in a particular market, sector or value
chain (which may include issuers in a number of different industries) increases
the risk of loss because the stocks of many or all of
the
3
companies
in such market, sector or value chain may decline in value due to economic,
market, technological, political or regulatory developments adversely affecting
the market or value chain.
High Yield (“Junk
Bond”) Investments Risk. Below investment grade fixed income
securities, also known as “junk bonds,” are not investment grade and are
generally considered speculative because they present a greater risk of loss
than higher quality debt securities. These lower-rated or defaulted debt
securities may fluctuate more in price, and are less liquid than higher-rated
securities because issuers of such lower-rated debt securities are not as strong
financially, and are more likely to encounter financial difficulties and be more
vulnerable to adverse changes in the
economy.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market
countries.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
Loan-Related
Investments Risk. In addition to risks generally associated with
debt investments (e.g., interest rate risk and default risk), loan-related
investments such as loan participations and assignments are subject to other
risks. Although a loan obligation may be fully collateralized at the time of
acquisition, the collateral may decline in value, be or become illiquid or less
liquid, or lose all or substantially all of its value subsequent to
investment.
Liquidity
Risk. The Fund may make investments that are illiquid or that may
become less liquid in response to market developments or adverse investor
perceptions. Illiquid investments may be more difficult to
value.
LIBOR
Risk. Certain instruments in which the Fund may invest rely in
some fashion upon the London Interbank Offered Rate (“LIBOR”). On March 5,
2021, the United Kingdom Financial Conduct Authority (FCA) and LIBOR’s
administrator, ICE Benchmark Administration (IBA), announced that most LIBOR
settings would no longer be published after the end of 2021 and a majority of
U.S. dollar LIBOR settings would no longer be published after June 30,
2023. Abandonment of or modifications to LIBOR could have adverse impacts on
newly issued financial instruments and existing financial instruments which
reference LIBOR and lead to significant short-term and long-term uncertainty and
market instability.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated.
4
Any
given investment strategy may fail to produce the intended results, and a Fund’s
portfolio may underperform other comparable funds because of portfolio
management decisions related to, among other things, the selection of
investments, portfolio construction, risk assessments, and/or the outlook on
market trends and
opportunities.
CLO
Risk. Collateralized loan obligations (“CLOs”) issue classes or
“tranches” that vary in risk and yield and may experience substantial losses due
to actual defaults, decrease of market value due to collateral defaults and
removal of subordinate tranches, market anticipation of defaults and investor
aversion to CLO securities as a class. The risks of investing in CLOs depends
largely on the tranche and the type of the underlying debts and loans in the
tranche. Investments in subordinate tranches may carry greater risk. CLOs also
carry risks including, but not limited to, interest rate risk and credit risk.
Because the underlying assets in CLOs are loans, in the event an underlying loan
is subject to liquidity risks such as the risk of extended settlement,
investments in the corresponding CLOs may be indirectly subject to the same
risks.
Convertible
Securities Risk. Convertible securities subject the Fund to the
risks associated with both fixed-income securities and equity securities. If a
convertible security’s investment value is greater than its conversion value,
its price will likely increase when interest rates fall and decrease when
interest rates rise. If the conversion value exceeds the investment value, the
price of the convertible security will tend to fluctuate directly with the price
of the underlying equity security. Certain “triggering events” may cause the
Fund to lose the principal amount invested in a contingent convertible security
and coupon payments on contingent convertible securities may be discretionary
and cancelled by the issuer. Due to these factors, the value of contingent
convertible securities is unpredictable, and holders of contingent convertible
securities may suffer a loss of capital when comparable equity holders do
not.
Derivatives
Risk. The Fund’s use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include
(i) the risk that the counterparty to a derivative transaction may not
fulfill its contractual obligations; (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or
index.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
ESG Factor Risk.
Considering ESG factors when evaluating an investment may result
in the selection or exclusion of certain investments based on the Adviser’s view
of these factors and carries the risk that the Fund may underperform funds that
do not take ESG factors into account. In evaluating an issuer, the Adviser may
be dependent upon information and data obtained through voluntary reporting by
issuers or third-party research that may be incomplete, inaccurate or
unavailable, which could impact the portfolio managers’ assessment of related
risks and opportunities.
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities
held.
Hedging
Risk. Hedging is a strategy in which the Fund uses a derivative or
other security to offset certain risks associated with other Fund holdings or to
render the portfolio more resilient to market fluctuations. There can be no
assurance that the Fund’s hedging strategy will reduce risk or that hedging
transactions will be either available or cost effective. The Fund is not
required to use hedging and may choose not to do
so.
Investment Company
Risk. If the Fund invests in shares of another investment company,
shareholders will indirectly bear fees and expenses charged by the underlying
investment companies in which the Fund invests in
5
addition
to the Fund’s direct fees and expenses. The Fund also will incur brokerage costs
when it purchases investment company securities, including ETFs and closed‑end
funds. Furthermore, investments in other funds could affect the timing, amount,
and character of distributions to shareholders and therefore may increase the
amount of taxes payable by investors in the
Fund.
Municipal Securities
Risk. The value of municipal bonds that depend on a specific
revenue source or general revenue source to fund their payment obligations may
fluctuate as a result of changes in the cash flows generated by the revenue
source(s) or changes in the priority of the municipal obligation to receive the
cash flows generated by the revenue source(s). In addition, changes in federal
tax laws or the activity of an issuer may adversely affect the tax‑exempt status
of municipal bonds.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including any changes to applicable tax laws and regulations,
could impair the ability of the Fund to achieve its investment objective and
could increase the operating expenses of the
Fund.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
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Best
quarter: |
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04/01/2021 – 06/30/2021 – 2.60 |
% |
Worst
quarter: |
|
|
04/01/2022 – 06/30/2022 – (6.21 |
%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 2.04%. |
6
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(8.42 |
%) |
|
|
(1.77 |
%) |
Institutional
Shares – After Taxes on Distributions |
|
|
(9.75 |
%) |
|
|
(3.20 |
%) |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(4.97 |
%) |
|
|
(1.88 |
%) |
| |
|
|
|
|
|
|
|
Bloomberg
Barclays U.S. Aggregate Bond Index (reflects no deductions for fees,
expenses, or taxes) |
|
|
(13.01 |
%) |
|
|
(6.11 |
%) |
| |
|
|
|
|
|
|
|
I.C.E.
BofAML BB‑B Global High Yield Constrained Index USD (reflects no
deductions for fees, expenses, or taxes) |
|
|
(12.97 |
%) |
|
|
(3.01 |
%) |
| |
|
|
|
|
|
|
|
Advisor
Shares – Before Taxes |
|
|
(8.44 |
%) |
|
|
(2.14 |
%) |
| |
|
|
|
|
|
|
|
^ |
The Advisor Shares of the Predecessor
Fund commenced operations on December 18,
2021. Historical performance for Advisor Shares prior to
its inception is based on the performance of Institutional Shares. The
performance of Advisor Shares has been adjusted to reflect differences in
expenses. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
| |
Giorgio
Caputo
Senior
Fund Manager
Length
of Service: Since July 18, 2020* |
|
Adam
Gittes
Senior
Fund Manager
Length
of Service: Since November 23, 2020* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
7
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
8
FUND SUMMARY
JOHCM
Emerging Markets Discovery Fund
(formerly,
JOHCM Emerging Markets Small Mid Cap Equity Fund)
Investment
Objective
The
investment objective of the JOHCM Emerging Markets Discovery Fund (the “Fund”)
is to seek long-term capital appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
0.46 |
% |
|
|
0.46 |
% |
|
|
0.46 |
% |
|
|
0.46 |
% |
Total
Annual Fund Operating Expenses |
|
|
1.76 |
% |
|
|
1.86 |
% |
|
|
2.01 |
% |
|
|
1.76 |
% |
Fee
Waivers and Reimbursements1 |
|
|
(0.27 |
%) |
|
|
(0.27 |
%) |
|
|
(0.27 |
%) |
|
|
(0.27 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
1.49 |
% |
|
|
1.59 |
% |
|
|
1.74 |
% |
|
|
1.49 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 1.49%,
1.59%, 1.74%, and 1.49% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
9
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
152 |
|
|
$ |
528 |
|
|
$ |
929 |
|
|
$ |
2,051 |
|
Advisor
Shares |
|
$ |
162 |
|
|
$ |
559 |
|
|
$ |
981 |
|
|
$ |
2,158 |
|
Investor
Shares |
|
$ |
177 |
|
|
$ |
604 |
|
|
$ |
1,058 |
|
|
$ |
2,316 |
|
Class Z
Shares |
|
$ |
152 |
|
|
$ |
528 |
|
|
$ |
929 |
|
|
$ |
2,051 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 123.95% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in equity securities
issued by companies located in emerging markets, including frontier markets.
Equity securities include common and preferred stocks, and include rights and
warrants to subscribe to common stock or other equity securities. The Fund may
achieve its equity exposure either directly or indirectly, such as through
depositary receipts, exchange-traded funds (“ETFs”) and participatory notes
(commonly known as “P‑notes”). Emerging market countries are those countries
included in the MSCI Emerging Markets Index and MSCI Frontier Markets Index,
countries with low to middle-income economies according to the International
Bank for Reconstruction and Development (more commonly referred to as the World
Bank), and other countries with similar emerging market characteristics.
The
portfolio managers use a disciplined fundamental bottom‑up research approach,
namely by focusing on analyzing individual companies rather than by beginning
with a “top down” allocation across particular countries, regions, markets or
sectors. As part of this approach, the portfolio managers aim to identify
emerging market companies that they believe are inefficiently priced and that
typically demonstrate positive growth characteristics. As part of the selection
process for its “discovery” strategy, the portfolio managers typically look for
companies that are: (a) in emerging industries with pioneering business
models, or (b) have innovative technologies that have the potential to disrupt
the status quo, or (c) are offering products or services that are not yet
widely available or adopted in the local market, with the potential for
long-term growth. The portfolio managers also seek to identify growth potential
in companies that they believe are recovering (or will soon begin to recover)
from significant market or business setbacks and therefore have the potential to
outpace broader financial markets on a relative basis. While the portfolio
managers build the Fund’s portfolio primarily from a bottom-up growth philosophy
and individual stock selection process they also consider top-down macroeconomic
information, particularly in determining sector and country weightings in the
portfolio. The portfolio managers consider the country and sector allocation of
the Fund’s performance benchmark (the MSCI Emerging Markets Small Cap Index) but
may depart from the benchmark’s allocations at any time. In selecting companies
for investment, the portfolio managers also consider the investment risks
associated with the liquidity
10
of
the company’s stock, taking into account the depth of the trading market for the
company’s shares, and how reliable the company’s reporting (particularly its
financial reporting) appears to be while also seeking to take advantage of
market inefficiencies as to individual companies and
industries.
Under
normal circumstances, the Fund will typically hold securities of 70 to 120
companies and will invest at least 80% of its assets in small and medium
capitalization companies, which the Fund currently considers to be companies
with market capitalizations below U.S. $8 billion. The Fund may invest a
significant portion of its assets in issuers located in one country or a small
number of countries. These countries may change from time to time. While the
Fund does not pursue active or frequent trading as a principal strategy, it has
in the past and could in the future experience elevated levels of portfolio
turnover when implementing its strategy in certain economic and market
conditions.
The
Fund expects to invest a portion of its assets in securities of developed
markets companies that derive, or are expected to derive, a significant portion
of their revenues from their operations in emerging or frontier markets. The
Fund may also participate in initial public offerings
(“IPO”s).
The
Fund also may purchase futures contracts and other derivative contracts,
including index derivatives for equities and currencies. Although the Fund did
not invest significantly in derivatives instruments as of the most recent fiscal
year end, it may do so at any time. The Fund also may invest in physical
currencies and spot and forward currency contracts. The Fund typically does not
seek to hedge its exposure to non‑U.S. dollar
currencies.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other
investments. Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government
agency. Below are the principal risks of investing in the
Fund. All of the risks listed below are material to the Fund, regardless of the
order in which they appear. The Fund should only be purchased by investors
seeking long-term growth of capital who can withstand the share price volatility
of equity investing with a focus on emerging market stocks.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries, or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets, and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
11
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities
held.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market
countries.
Geographic Focus
Risk. The risk that events negatively affecting the fiscal
stability of a particular country or region in which the Fund focuses its
investments will cause the value of the Fund’s shares to decrease, perhaps
significantly. To the extent the Fund focuses its assets in a particular country
or region, the Fund is more vulnerable to financial, economic, or other
political developments in that country or region as compared to a fund that does
not focus on holdings in a particular country or region. As a result, the Fund
may be more volatile than a fund which is broadly diversified
geographically.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
Convertible
Securities Risk. Convertible securities are hybrid securities that
have characteristics of both fixed income and equity securities and are subject
to risks associated with both fixed income and equity
securities.
Investment Company
Risk. Shareholders in the Fund will indirectly bear fees and
expenses charged by the underlying investment companies in which the Fund
invests in addition to the Fund’s direct fees and expenses. Investments in other
funds also may increase the amount of taxes payable by investors in the
Fund.
Participatory Notes
Risk. P‑notes, which are designed to replicate the performance of
certain issuers and markets where direct investment is either impossible or
difficult due to local restrictions, represent interest in securities listed on
certain non‑U.S. exchanges, and thus present similar risks to investing directly
in such securities. P‑notes also expose investors to counterparty risk, which is
risk that the entity issuing the note may not be able to honor its financial
commitments. The liquidity of a P‑note reflects the liquidity in the underlying
security. At times, it may be more illiquid than trading the underlying security
as broker selection is restricted to the underwriter of the
P‑note.
Portfolio Turnover
Risk. The Fund may sell its portfolio securities, regardless of
the length of time that they have been held, if the Adviser determines that it
would be in the Fund’s best interest to do so. These transactions will increase
the Fund’s “portfolio turnover.” High turnover rates generally result in higher
brokerage costs to the Fund and higher amounts of taxable distributions to
shareholders.
12
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
Derivatives
Risk. The Fund’s use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include
(i) the risk that the counterparty to a derivative transaction may not
fulfill its contractual obligations; (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or
index.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best quarter: |
|
|
04/01/2020 – 06/30/2020 – 30.15% |
|
Worst quarter: |
|
|
01/01/2020 – 03/31/2020 – (25.59%) |
|
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 6.33%. |
13
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(21.37 |
%) |
|
|
2.35 |
% |
|
|
7.82 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(21.29 |
%) |
|
|
0.62 |
% |
|
|
5.88 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(12.22 |
%) |
|
|
1.73 |
% |
|
|
5.89 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
MSCI
Emerging Markets Small Cap Index (reflects no deductions for fees or
expenses)* |
|
|
(18.02 |
%) |
|
|
1.06 |
% |
|
|
4.17 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Advisor
Shares – Before Taxes |
|
|
(21.33 |
%) |
|
|
2.27 |
% |
|
|
7.74 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
^ |
The Institutional Shares of the
Predecessor Fund commenced operations on December 17,
2014.
Advisor Shares commenced operations on January 28,
2016. Historical performance for Advisor Shares prior to
its inception is based on the performance of the Institutional Shares. The
performance of Advisor Shares has been adjusted to reflect differences in
expenses. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
|
|
| |
Emery
Brewer |
|
Dr. Ivo
Kovachev |
|
Stephen
Lew |
Senior Fund Manager |
|
Senior
Fund Manager |
|
Senior
Fund Manager |
Length of Service: Since 2014* |
|
Length
of Service: Since 2014* |
|
Length
of Service: Since 2014* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and
14
JOHCM
Funds Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
15
FUND SUMMARY
JOHCM
Emerging Markets Opportunities Fund
Investment
Objective
The
investment objective of the JOHCM Emerging Markets Opportunities Fund (the
“Fund”) is to seek long-term capital
appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
0.13 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
Total Annual Fund Operating Expenses1 |
|
|
1.03 |
% |
|
|
1.11 |
% |
|
|
1.26 |
% |
|
|
1.01 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 1.04%,
1.12%, 1.27%, and 1.02% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
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
16
indicated
and then redeem all of your shares at the end of those periods. The Example also
assumes that each year your investment has a 5% return and Fund operating
expenses remain the same. Although your actual costs and returns might be
different, your approximate costs of investing $10,000 in the Fund would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
105 |
|
|
$ |
328 |
|
|
$ |
569 |
|
|
$ |
1,259 |
|
Advisor
Shares |
|
$ |
113 |
|
|
$ |
353 |
|
|
$ |
612 |
|
|
$ |
1,352 |
|
Investor
Shares |
|
$ |
128 |
|
|
$ |
400 |
|
|
$ |
692 |
|
|
$ |
1,523 |
|
Class Z
Shares |
|
$ |
103 |
|
|
$ |
322 |
|
|
$ |
558 |
|
|
$ |
1,236 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 41.23% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its investment objective by investing, under normal
circumstances, at least 80% of its net assets (plus the amount of any borrowings
for investment purposes) in equity securities of companies located in emerging
market countries. The Fund may invest in companies of any size, including small-
and mid‑capitalization companies. Emerging market countries are those countries
included in the MSCI Emerging Markets Index and MSCI Frontier Markets Index,
countries with low to middle-income economies according to the International
Bank for Reconstruction and Development (more commonly referred to as the World
Bank) and other countries with similar emerging market characteristics. The Fund
may also invest up to 5% of its assets in frontier markets, which are generally
smaller, less liquid, and less developed than emerging markets.
The
equity securities in the Fund’s portfolio can include direct and indirect
investments in common and preferred stocks, as well as rights and warrants to
subscribe to equity securities. The Fund obtains indirect exposure to equity
securities through instruments such as depositary receipts and participatory
notes. Depositary receipts, such as American Depositary Receipts (“ADRs”) and
Global Depositary Receipts (“GDRs”) are receipts issued by a bank or trust
company evidencing ownership of underlying securities issued by a foreign
issuer. Depositary receipts are alternatives to directly purchasing the
underlying foreign securities in their national markets and currencies.
The
Fund utilizes a core investment style with a modest growth tilt (growth at a
reasonable price, or “GARP”) over all capitalization ranges to invest in equity
securities of companies located in emerging markets. The GARP investment
strategy is a blend of growth and value investing, which seeks to find companies
that have strong earnings growth at a good price. The Fund combines top‑down and
bottom‑up research to assess potential investments in the Fund. A top‑down
country view represents an assessment of the investment prospects in a country
(in this case, a particular emerging market country) based on macroeconomic,
geopolitical and other factors affecting the country as a whole. The portfolio
managers seek to invest in companies that possess attractive fundamentals (for
example, a company’s revenues, earnings, or management) and that fit with the
portfolio managers top‑down country views within the emerging markets. The
portfolio is managed with reference to its performance benchmark, the MSCI
Emerging Markets Index, as to country and sector allocation but may depart from
the benchmark’s allocations at any time. The Fund will typically own between 40
and 60 companies.
17
The
Fund may invest a significant portion of its assets in investments located in
one country or a small number of countries. These countries may change from time
to time. The Fund’s performance benchmark index currently includes substantial
exposure to China.
The
Fund may also participate in initial public offerings
(IPOs).
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
The Fund should only be purchased by investors seeking long-term growth of
capital who can withstand the share price volatility of equity investing with a
focus on emerging market stocks. Below are the principal risks of investing in
the Fund. All of the risks listed below are material to the Fund, regardless of
the order in which they appear.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market countries.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and opportunities.
18
Geographic Focus
Risk. The risk that events negatively affecting the fiscal
stability of a particular country or region in which the Fund focuses its
investments will cause the value of the Fund’s shares to decrease, perhaps
significantly. To the extent the Fund focuses its assets in a particular country
or region, the Fund is more vulnerable to financial, economic, or other
political developments in that country or region as compared to a fund that does
not focus on holdings in a particular country or region. As a result, the Fund
may be more volatile than a fund which is broadly diversified
geographically.
China
Risk. To the extent a Fund invests in securities of Chinese
issuers, it may be subject to certain risks and considerations not typically
associated with investing in securities of U.S. issuers, including, among
others, more frequent trading suspensions and government interventions
(including by nationalization of assets), currency exchange rate fluctuations or
blockages, limits on the use of brokers and on non‑U.S. ownership, variable
interest entities risks, different financial reporting standards, higher
dependence on exports and international trade, potential for increased trade
tariffs, embargoes and other trade limitations, and custody
risks.
Growth Investing
Risk. The prices of growth stocks may be based largely on
expectations of future earnings, and their prices can decline rapidly and
significantly in reaction to negative news. Growth stocks may underperform
stocks in other broad style categories (and the stock market as a whole) over a
short or long period of time and may shift in and out of favor with investors
generally, sometimes rapidly, depending on changes in market, economic, and
other factors.
GARP Investment
Strategy Risk. GARP investing involves buying stocks that have a
reasonable price/earnings ratio in relationship to the relevant company’s
earnings growth rate. To the extent the Fund uses a GARP investing strategy, the
Fund’s performance may be adversely affected when stocks preferred by a GARP
investing strategy underperform or are not favored by investors in prevailing
market and economic conditions.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets, and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Participatory Notes
Risk. P‑notes, which are designed to replicate the performance of
certain issuers and markets where direct investment is either impossible or
difficult due to local restrictions, represent interest in securities listed on
certain non‑U.S. exchanges, and thus present similar risks to investing directly
in such securities. P‑notes also expose investors to counterparty risk, which is
risk that the entity issuing the note may not be able to honor its financial
commitments. The liquidity of a P‑note reflects the liquidity in the underlying
security. At times, it may be more illiquid than trading the underlying security
as broker selection is restricted to the underwriter of the
P‑note.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
IPO
Risk. The Fund may purchase securities in IPOs. These securities
are subject to many of the same risks of investing in companies with smaller
market capitalizations. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods. In
addition, the prices of securities sold in IPOs may be highly
volatile.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
19
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best
quarter: |
|
|
04/01/2020 – 06/30/2020 – 20.95 |
% |
Worst quarter: |
|
|
01/01/2020 – 03/31/2020 – (24.46 |
%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 9.26%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
|
Since Inception^
|
|
Institutional
Shares – Before Taxes |
|
|
(15.74 |
%) |
|
|
(0.46 |
%) |
|
|
2.96 |
% |
|
|
3.45 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(15.98 |
%) |
|
|
(1.11 |
%) |
|
|
2.14 |
% |
|
|
2.62 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(8.86 |
%) |
|
|
(0.27 |
%) |
|
|
2.19 |
% |
|
|
2.58 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI
Emerging Markets Index (reflects no deductions for fees or
expenses)* |
|
|
(20.09 |
%) |
|
|
(1.40 |
%) |
|
|
1.44 |
% |
|
|
2.18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisor
Shares – Before Taxes |
|
|
(15.77 |
%) |
|
|
(0.54 |
%) |
|
|
2.88 |
% |
|
|
3.37 |
% |
Investor
Shares – Before Taxes |
|
|
(15.90 |
%) |
|
|
(0.68 |
%) |
|
|
2.74 |
% |
|
|
3.23 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
^ |
The
Institutional Shares and Advisor Shares of the Predecessor Fund commenced
operations on November 21,
2012.
Investor Shares commenced operations on December 18,
2013. Historical performance for
Investor |
20
|
Shares prior to its
inception is based on the performance of Advisor Shares, the share class
most similar to Investor. The performance of Investor Shares has been
adjusted to reflect differences in expenses. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
|
|
| |
James
Syme, CFA |
|
Paul
Wimborne |
|
Ada
Chan |
Senior Fund Manager |
|
Senior Fund Manager |
|
Fund Manager |
Length of Service: Since 2013* |
|
Length of Service: Since 2013* |
|
Length of Service: Since
2022 |
* |
Served
as portfolio manager of the Fund’s predecessor, which reorganized into the
Trust on July 19, 2021. |
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day that the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
21
FUND SUMMARY
JOHCM
Global Income Builder Fund
Investment
Objective
The
investment objective of the JOHCM Global Income Builder Fund (the “Fund”) is to
seek a level of current income that is consistent with the preservation and
long-term growth of capital in inflation-adjusted
terms.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
0.67 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
Acquired
Fund Fees and Expenses1 |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Total
Annual Fund Operating Expenses |
|
|
0.90 |
% |
|
|
1.00 |
% |
|
|
1.15 |
% |
|
|
0.90 |
% |
Fee
Waivers and Reimbursements2 |
|
|
(0.16 |
%) |
|
|
(0.16 |
%) |
|
|
(0.16 |
%) |
|
|
(0.16 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.74 |
% |
|
|
0.84 |
% |
|
|
0.99 |
% |
|
|
0.74 |
% |
1 |
Expenses
associated with investments in underlying investment companies are
excluded from the contractual expense
limitation. |
2 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.72%,
0.82%, 0.97%, and 0.72% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be |
22
|
terminated by the Board
of Trustees at any time and will terminate automatically upon termination
of the Investment Advisory Agreement. Total Annual Fund Operating Expenses
After Fee Waivers and Reimbursements may exceed 0.72%, 0.82%, 0.97%, and
0.72% for Institutional Shares, Advisor Shares, Investor Shares, and
Class Z Shares, respectively, due to certain excluded expenses.
|
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
76 |
|
|
$ |
271 |
|
|
$ |
483 |
|
|
$ |
1,093 |
|
Advisor
Shares |
|
$ |
86 |
|
|
$ |
302 |
|
|
$ |
537 |
|
|
$ |
1,210 |
|
Investor
Shares |
|
$ |
101 |
|
|
$ |
350 |
|
|
$ |
618 |
|
|
$ |
1,383 |
|
Class Z
Shares |
|
$ |
76 |
|
|
$ |
271 |
|
|
$ |
483 |
|
|
$ |
1,093 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 122.58% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its investment objective by applying a bottom‑up,
long-term global value investing philosophy across a broad range of asset
classes. In a bottom‑up approach, companies and securities are researched and
chosen individually. While the Fund may hold investments in non‑income producing
securities, under normal circumstances, at least 80% of its net assets (plus the
amount of any borrowings for investment purposes) will be comprised of income
producing securities.
The
Fund normally will invest in a range of income-producing equity securities of
U.S. and non‑U.S. companies, including common stocks that offer attractive
dividend yields. The Fund’s equity securities include investments in common and
preferred stocks, as well as rights and warrants to subscribe to common stock or
other equity securities. The Fund may invest in initial public offerings
(“IPOs”) and real estate investment trusts (“REITs”). The Fund obtains exposure
to equity securities either directly or indirectly such as through participatory
notes and depositary receipts.
The
Fund also normally will invest in a range of fixed income instruments from
markets in the United States and multiple countries around the world such as
high-yield instruments (commonly referred to as ‘‘junk bonds’’), investment
grade instruments, sovereign debt, loans and loan participations. The Fund
maintains flexibility to have significant exposure to high-yield instruments in
response to current market conditions. The Fund may invest in securities of any
maturity or investment rating, as well as unrated securities, and will normally
invest in hybrid securities that embody elements of both equity and fixed income
securities such as preferred shares and convertible
bonds.
23
Pursuant
to a value investing philosophy, the Fund seeks to invest in securities the
portfolio managers believe provide a discount (or “margin of safety”) between a
security’s price and what the portfolio managers believe to be the true value of
the underlying business (which is sometimes referred to as “intrinsic value”).
The portfolio managers examine economic, financial, and other qualitative and
quantitative factors to evaluate a security’s value. In order to estimate the
intrinsic value of a business, the portfolio managers will assess the overall
quality of the business, including the competitive advantages that it enjoys,
such as economies of scale, customer captivity, and access to scarce resources.
This margin of safety approach is common to both equity and debt investments, as
the Fund requires a similar buffer for buying common stock or for “lending” to
an issuer through the purchase of its debt securities. The outcome of this
analysis is then compared to the security’s current value to determine if it is
over- or underpriced. The portfolio managers believe that investing when such a
margin of safety is present can help reduce the likelihood of permanent loss of
capital, as opposed to temporary losses due to shifting investor sentiment or
other normal asset price
volatility.
Additionally,
as part of the investment process, the portfolio managers consider financially
material environmental, social and governance (“ESG”) factors to evaluate and
monitor the securities in the Fund’s investment universe. The portfolio managers
combine third-party data (sources may include Sustainalytics, ISS and/or MSCI)
and internal ESG assessments in constructing the Fund’s portfolio. The portfolio
managers believe there are long-term benefits in investing in companies with
strong records for managing ESG risks, advancing sustainable development goals
and applying good corporate
governance.
The
Fund will seek to invest in companies that the portfolio managers believe have
high quality management teams, strong balance sheets, and defensible businesses
models; however, the valuation of the specific investment under consideration is
the most important criterion. As a result, the Fund may invest in securities of
issuers which do not encompass all or, in some cases, any of the above
additional qualities beyond attractive valuation, if the portfolio managers
believe the security is significantly undervalued and an exceptional margin of
safety exists.
As
a multi-asset portfolio, the Fund invests in the various asset classes described
herein and may shift its investments from one asset class to another. The
portfolio managers’ decision to allocate incremental capital to a security in
one asset class versus another is typically based on a bottom‑up as opposed to a
top‑down assessment of asset class returns or macroeconomic predictions, relying
on both quantitative and qualitative assessments, to determine which
investments, in their opinion, provide the best risk-reward profile and/or
render the portfolio more resilient. The portfolio managers believe that
maintaining this flexible approach is critical to avoiding pockets of overvalued
securities. The portfolio managers also seek to preserve flexibility across
geographic areas and company size. As a result, the Fund may invest in
securities of companies of any market capitalization or domicile. The portfolio
managers anticipate that, under normal circumstances, the Fund will invest in a
portfolio of between 30% and 70% common equity securities, with the balance of
its assets invested in fixed income securities, hedging assets, and cash or cash
equivalents. However, the portfolio managers maintain the ability to adjust the
Fund’s allocations as needed to adapt the portfolio to various income, market,
and valuation environments. In pursuing the Fund’s investment objective, under
normal circumstances, at least 40% of the Fund’s investments will be in issuers
located outside of the United States. If market conditions are deemed
unfavorable the Fund reserves the right to invest as little as 30% of its assets
in non‑U.S. issuers.
The
Fund anticipates that it may enter into derivatives transactions and various
other hedging assets that the portfolio managers believe will reduce the overall
volatility of the Fund, protecting capital, in certain market environments. The
Fund may also use hedging and derivative instruments to reduce certain risk
exposures present in the Fund’s holdings. The Fund may also engage in short
sales or take short positions for hedging or other investment
purposes.
As
part of its investment strategy, the Fund may also invest in exchange-traded and
over‑the‑counter derivative instruments, including interest rate, credit, index,
and currency futures; currency, interest rate,
total
24
rate
of return, and credit default swaps; currency, bond, and swap options;
deliverable and non‑deliverable currency forward contracts; bonds for forward
settlement; options, including buying and selling puts and calls; and
equity-linked notes.
The
Fund may invest in contingent securities structured as contingent convertible
securities also known as “CoCos.” A contingent convertible security is a hybrid
debt security either convertible into equity at a predetermined share price or
written down in value based on the specific terms of the individual security if
a pre‑specified trigger event occurs (the “Trigger Event”), such as a decline in
the issuer’s capital below a specified threshold or increase in the issuer’s
risk-weighted assets. The Fund anticipates that it may invest up to 20% of its
assets in CoCos.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they appear.
The Fund should only be purchased by investors seeking current income and
long-term growth of capital who can withstand the share price volatility of
equity and fixed income investing with a focus on securities of any market
capitalization.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
Asset Allocation
Risk. The risk that if the Fund’s strategy for allocating assets
among different asset classes does not work as intended, the Fund may not
achieve its objective or may underperform other funds with similar investment
strategies.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries, or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
ESG Factor Risk.
Considering ESG factors when evaluating an investment may result
in the selection or exclusion of certain investments based on the Adviser’s view
of these factors and carries the risk that the Fund may underperform funds that
do not take ESG factors into account. In evaluating an issuer, the Adviser may
be dependent upon information and data obtained through voluntary reporting by
issuers or third-party research that may be incomplete, inaccurate or
unavailable, which could impact the portfolio managers’ assessment of related
risks and opportunities.
Fixed Income
Risk. Fixed income securities will increase or decrease in value
based on changes in interest rates. If rates increase, the value of the Fund’s
fixed income securities generally declines. On the other hand, if rates fall,
the value of the fixed income securities generally increases. Your investment
will decline in value if the value of the Fund’s investments
decreases.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may
underperform
25
other
comparable funds because of portfolio management decisions related to, among
other things, the selection of investments, portfolio construction, risk
assessments, and/or the outlook on market trends and
opportunities.
IPO
Risk. The Fund may purchase securities in IPOs. These securities
are subject to many of the same risks of investing in companies with smaller
market capitalizations. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods. In
addition, the prices of securities sold in IPOs may be highly
volatile.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market
countries.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
Credit
Risk. An issuer of debt securities may fail to make interest
payments or repay principal when due, in whole or in part. Changes in an
issuer’s financial strength or in a security’s credit rating may affect a
security’s value.
High Yield (“Junk
Bond”) Investments Risk. Below investment grade fixed income
securities, also known as “junk bonds,” are not investment grade and are
generally considered speculative because they present a greater risk of loss
than higher quality debt securities. These lower-rated or defaulted debt
securities may fluctuate more in price, and are less liquid than higher-rated
securities because issuers of such lower-rated debt securities are not as strong
financially, and are more likely to encounter financial difficulties and be more
vulnerable to adverse changes in the
economy.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies the Fund
invests in may be more vulnerable to adverse business or economic events than
larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Commodities Related
Investment Risk. Exposure to the commodities markets may subject
the Fund to greater volatility than investments in traditional securities. The
value of commodity-linked derivative instruments, commodity-based exchange
traded trusts, and commodity-based exchange traded funds and notes may be
affected by changes in overall market movements, commodity index volatility,
changes in interest rates, or
26
factors
affecting a particular industry or commodity, such as drought, floods, weather,
livestock disease, embargoes, tariffs, and international economic, political and
regulatory developments.
Convertible
Securities Risk. Convertible securities are hybrid securities that
have characteristics of both fixed income securities and equity securities and
are subject to risks associated with both fixed income and equity securities.
Certain “triggering events” may cause the Fund to lose the principal amount
invested in a contingent convertible security and coupon payments on contingent
convertible securities may be discretionary and cancelled by the issuer. Due to
these factors, the value of contingent convertible securities is unpredictable,
and holders of contingent convertible securities may suffer a loss of capital
when comparable equity holders do
not.
Derivatives
Risk. The Fund’s use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include
(i) the risk that the counterparty to a derivative transaction may not
fulfill its contractual obligations; (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or
index.
Equity-Linked
Instruments Risk. There is a risk that, in addition to market risk
and other risks of the referenced equity security, the Fund may experience a
return that is different from that of the referenced equity security.
Equity-linked instruments also subject the Fund to counterparty risk, including
the risk that the issuing entity may not be able to honor its financial
commitment, which could result in a loss of all or part of the Fund’s
investment.
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
the value of commodity-linked ETFs may be affected by changes in overall market
movements, commodity index volatility, change in interest rates, or factors
affecting a particular industry or commodity, such as drought, floods, weather,
livestock disease, embargoes, tariffs, and international economic, political,
and regulatory developments. The prices of commodity-related ETFs may fluctuate
quickly and dramatically and may not correlate to price movements in other asset
classes, such as stocks, bonds, and
cash.
Hedging
Risk. Hedging is a strategy in which the Fund uses a derivative or
other security to offset certain risks associated with other Fund holdings or to
render the portfolio more resilient to market fluctuations. There can be no
assurance that the Fund’s hedging strategy will reduce risk or that hedging
transactions will be either available or cost effective. The Fund is not
required to use hedging and may choose not to do
so.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
REIT and Real
Estate-Related Investment Risk. Adverse changes in the real estate
markets may affect the value of REIT
investments.
Loan-Related
Investments Risk. In addition to risks generally associated with
debt investments (e.g., interest rate risk and default risk), loan-related
investments such as loan participations and assignments are subject to other
risks. Although a loan obligation may be fully collateralized at the time of
acquisition, the collateral may decline in value, be or become illiquid or less
liquid, or lose all or substantially all of its value subsequent to
investment.
Sovereign Debt Risk.
Sovereign debt instruments are subject to the risk that a
governmental entity may delay, refuse, or be unable to pay interest or repay
principal on its sovereign debt. This risk is heightened for emerging and
frontier market issuers, for government entities in countries experiencing
economic downturns, or both.
27
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a
custom-blended index. Performance reflects contractual fee
waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best
quarter: |
|
|
04/01/2020 – 06/30/2020 – 10.80 |
% |
Worst quarter: |
|
|
01/01/2020 – 03/31/2020 – (15.76 |
%) |
* |
The
Fund’s fiscal year end is September 30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 8.19%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(12.34 |
%) |
|
|
3.01 |
% |
|
|
3.00 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(13.10 |
%) |
|
|
1.75 |
% |
|
|
1.74 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(7.03 |
%) |
|
|
1.97 |
% |
|
|
1.96 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
60%
MSCI World High Dividend Yield/ 20% Bloomberg Barclays US Aggregate Bond
Index/ 20% ICE BofAML BB‑B Global High Yield Constrained (reflects no
deductions for fees or expenses)* |
|
|
(7.99 |
%) |
|
|
3.16 |
% |
|
|
3.31 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Advisor
Shares – Before Taxes |
|
|
(12.44 |
%) |
|
|
2.91 |
% |
|
|
2.89 |
% |
Investor
Shares – Before Taxes |
|
|
(12.55 |
%) |
|
|
2.76 |
% |
|
|
2.75 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
28
^ |
The Institutional Shares and the Advisor
Shares of the Predecessor Fund commenced operations on November 29,
2017.
Investor Shares commenced operation on June 28,
2019. Historical performance for Investor Shares prior to
its inception is based on the performance of the Institutional Shares. The
performance of Investor Shares has been adjusted to reflect differences in
expenses. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
|
|
| |
Giorgio
Caputo |
|
Adam
Gittes |
|
Robert
Hordon, CFA |
Senior Fund Manager |
|
Senior Fund Manager |
|
Senior Fund Manager |
Length of Service: |
|
Length of Service: |
|
Length of Service: |
Since November 29, 2017* |
|
Since November 23, 2020* |
|
Since November 29,
2017* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
29
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
30
FUND SUMMARY
JOHCM
Global Select Fund
Investment
Objective
The
investment objective of the JOHCM Global Select Fund (the “Fund”) is to seek
long-term capital appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.10 |
% |
|
|
0.10 |
% |
Total
Annual Fund Operating Expenses |
|
|
0.99 |
% |
|
|
1.09 |
% |
|
|
1.24 |
% |
|
|
0.99 |
% |
Fee
Waivers and Reimbursements1 |
|
|
(0.01 |
)% |
|
|
(0.01 |
)% |
|
|
(0.01 |
)% |
|
|
(0.01 |
)% |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.98 |
% |
|
|
1.08 |
% |
|
|
1.23 |
% |
|
|
0.98 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.98%,
1.08%, 1.23%, and 0.98% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
31
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 each year your
investment has a 5% return and Fund operating expenses remain the same. Although
your actual costs and returns might be different, your approximate costs of
investing $10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
100 |
|
|
$ |
314 |
|
|
$ |
546 |
|
|
$ |
1,212 |
|
Advisor
Shares |
|
$ |
110 |
|
|
$ |
346 |
|
|
$ |
600 |
|
|
$ |
1,328 |
|
Investor
Shares |
|
$ |
125 |
|
|
$ |
392 |
|
|
$ |
680 |
|
|
$ |
1,499 |
|
Class Z
Shares |
|
$ |
100 |
|
|
$ |
314 |
|
|
$ |
546 |
|
|
$ |
1,212 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 54.44% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its investment objective by investing primarily in
common stocks and other equity securities of U.S. and non‑U.S. companies,
including in preferred stock, rights, and warrants. The Fund normally invests at
least 40% of its assets in companies located in countries other than the U.S.,
provided that the Fund reserves the flexibility to invest as little as 30% of
its assets in companies located outside the U.S. when market conditions are
unfavorable. Notwithstanding the previous sentence, the Fund may invest a
percentage lower than 40% in such non‑U.S. securities if the weighting of
non‑U.S. securities in the Fund’s performance benchmark (currently, the MSCI
ACWI Index) drops below 45%, in which case the minimum level investments in
non‑U.S. securities must remain within 5% of the benchmark’s weighting (e.g. if
the weighting of non‑U.S. securities in the Fund’s performance benchmark is 38%,
the minimum level for investing in non‑U.S. securities for the Fund would be
33%). Typically, the Fund invests in a number of different countries, including
emerging markets. The Fund may invest in companies of any size, including small-
and mid capitalization companies, in order to achieve its objective.
The
portfolio managers seek to identify and make investments based on a
multi-dimensional investment process, considering a number of factors, including
growth, valuation, size, momentum, and beta. Beta measures the volatility of a
stock relative to the overall market. The Fund utilizes a core investment style
with a growth tilt (growth at a reasonable price, or “GARP”) over all
capitalization ranges, which means that the Fund generally invests in larger,
more established companies, but would expect to invest a somewhat greater
portion of its assets in smaller, growth companies than would a typical large
cap mutual fund. The GARP investment strategy is a blend of growth and value
investing and seeks to find companies that have strong earnings growth at a good
price. The Fund seeks those stocks, sectors, and countries with positive
earnings surprises, sustainably high or increasing return on equity, and
attractive valuations. The investment process utilizes a combination of bottom
up investing and top down asset allocation that typically results in a portfolio
of 30 to 60 holdings. Bottom up investing utilizes techniques such as
fundamental analysis to assess growth and value potential of individual issuers.
In conducting fundamental analysis of companies that are being considered for
purchase by the Fund, the portfolio managers will evaluate, among other things,
the financial condition and management of a company, its industry, stability of
the country in which the company is located, and the interrelationship of these
variables over time.
32
Additionally,
as a standard part of the multi-dimensional investment process, the portfolio
managers consider financially material environmental, social and governance
(“ESG”) factors, including potential impacts on the long-term risk and return
profile of a company. Such factors, alongside other relevant factors, may be
taken into account in the Fund’s securities selection process. Top down asset
allocation utilizes evaluations of, among other things, economic factors
including country risk, sector trends within individual countries and regions,
and currency impact.
Investments
are predominantly in common stock, however the Fund also expects to gain some of
its equity exposure indirectly, such as through purchasing depositary receipts,
exchange-traded funds (“ETFs”) and/or participatory notes. Participatory notes
(commonly known as “P‑notes”) are instruments that provide exposure to,
primarily, equity securities of issuers listed on a non‑U.S. exchange and are
typically used when a direct investment in the underlying security is either
unpermitted, restricted or uneconomical due to country-specific regulations or
other restrictions.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they appear.
The Fund should only be purchased by investors seeking long-term growth of
capital who can withstand the share price volatility of equity investing with a
focus on global stocks.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries, or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market countries.
ESG Factor
Risk. Considering ESG factors when evaluating an investment may
result in the selection or exclusion of certain investments based on the
Adviser’s view of these factors and carries the risk that the Fund may
underperform funds that do not take ESG factors into account. In evaluating an
issuer, the Adviser may be dependent upon information and data obtained through
voluntary reporting by issuers or third-party research that may be incomplete,
inaccurate or unavailable, which could impact the portfolio managers’ assessment
of related risks and opportunities.
33
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities
held.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
Growth Investing
Risk. The prices of growth stocks may be based largely on
expectations of future earnings, and their prices can decline rapidly and
significantly in reaction to negative news. Growth stocks may underperform
stocks in other broad style categories (and the stock market as a whole) over a
short or long period of time and may shift in and out of favor with investors
generally, sometimes rapidly, depending on changes in market, economic, and
other factors.
GARP Investment
Strategy Risk. GARP investing involves buying stocks that the
portfolio managers believe have reasonable price/earnings ratios in relation to
the relevant company’s current or expected future earnings growth rate. To the
extent the Fund uses a GARP investing strategy, the Fund’s performance may be
adversely affected when stocks preferred by a GARP investing strategy
underperform or are not favored by investors in prevailing market and economic
conditions.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee
34
waivers
were not in place, performance would be reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best
quarter: |
|
|
04/01/2020 – 06/30/2020 – 25.06 |
% |
Worst quarter: |
|
|
04/01/2022 – 06/30/2022 – (18.97 |
%) |
* |
The
Fund’s fiscal year end is September 30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 7.26%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(32.83 |
%) |
|
|
5.02 |
% |
|
|
7.70 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(34.18 |
%) |
|
|
2.64 |
% |
|
|
6.43 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(18.42 |
%) |
|
|
4.10 |
% |
|
|
6.38 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
MSCI
ACWI Index (reflects no deductions for fees or expenses)* |
|
|
(18.37 |
%) |
|
|
5.23 |
% |
|
|
7.55 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Advisor
Shares – Before Taxes |
|
|
(32.91 |
%) |
|
|
4.91 |
% |
|
|
7.61 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
^ |
The Institutional Shares and Advisor
Shares of the Predecessor Fund commenced operations on March 22,
2013.
Investor Shares had not yet commenced operations as of the periods ended
December 31, 2022. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
35
Portfolio Managers
|
| |
Christopher
J.D. Lees, CFA
Senior
Fund Manager
Length
of Service: Since 2009* |
|
Nudgem
Richyal, CFA
Senior
Fund Manager
Length of Service: Since 2009* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
36
FUND SUMMARY
JOHCM
International Opportunities Fund
Investment
Objective
The
investment objective of the JOHCM International Opportunities Fund (the “Fund”)
is to achieve long-term total return by investing in a focused portfolio of
international equity securities.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses1 |
|
|
2.29 |
% |
|
|
2.29 |
% |
|
|
2.29 |
% |
|
|
2.29 |
% |
Total
Annual Fund Operating Expenses |
|
|
3.04 |
% |
|
|
3.14 |
% |
|
|
3.29 |
% |
|
|
3.04 |
% |
Fee
Waivers and Reimbursements2 |
|
|
(2.16 |
%) |
|
|
(2.16 |
%) |
|
|
(2.16 |
%) |
|
|
(2.16 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.88 |
% |
|
|
0.98 |
% |
|
|
1.13 |
% |
|
|
0.88 |
% |
1 |
Restated to reflect current
expenses. |
2 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.88%,
0.98%, 1.13%, and 0.88% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
37
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
90 |
|
|
$ |
735 |
|
|
$ |
1,406 |
|
|
$ |
3,203 |
|
Advisor
Shares |
|
$ |
100 |
|
|
$ |
765 |
|
|
$ |
1,456 |
|
|
$ |
3,298 |
|
Investor
Shares |
|
$ |
115 |
|
|
$ |
810 |
|
|
$ |
1,530 |
|
|
$ |
3,438 |
|
Class Z
Shares |
|
$ |
90 |
|
|
$ |
735 |
|
|
$ |
1,406 |
|
|
$ |
3,203 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 68.19% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund invests, under normal market conditions, primarily in equity securities of
companies located outside the United States, including those located in emerging
market countries. The Fund may invest in non‑U.S. companies of any size,
including small- and mid‑capitalization companies, to achieve its objective.
Equity securities include common and preferred stocks, and include rights and
warrants to subscribe to common stock or other equity securities. The Fund may
achieve its equity exposure either directly or indirectly, such as through
participatory notes, though it does not use such indirect instruments as a means
of achieving leverage. The Fund may invest a significant portion of its assets
in investments located in one country or a small number of countries. These
countries may change from time to time.
The
Fund operates as a “diversified” investment company, and will typically own
between 25‑50 holdings. The portfolio managers aim to achieve above-average
risk-adjusted equity returns, over the medium term of three to five years. The
portfolio managers believe this is best achieved by investing in a
benchmark-agnostic portfolio of attractively valued high quality companies. The
portfolio managers seek to assess intrinsic value of such companies based on
long term competitive advantages and cash flow expectations. They prioritize
companies that they believe can generate cash profits reliably over many years
and have opportunities to pay dividends and/or reinvest some of those profits at
high rates of return.
The
portfolio managers believe that a key risk to any investor is permanent
impairment of capital from owning overvalued assets. Therefore, the Fund
maintains a valuation discipline intended to ensure that assets are only bought
when they are attractively valued, in absolute terms, with reference to their
estimated intrinsic value. The portfolio managers employ a scenario-based
approach to assessing intrinsic value, evaluating best- and worst-case outcomes
for potential and current investments and their related cash flows. Consistent
with the Fund’s absolute valuation discipline, the portfolio managers may
determine to delay reinvestment of sale proceeds or other available cash
immediately, instead holding positions in cash and cash equivalents, including
money market funds, potentially in an amount up to 20% of the net assets of the
Fund, while examining and awaiting available investment
opportunities.
38
Additionally,
as part of the research and security selection processes, the portfolio managers
consider financially material environmental, social and governance (“ESG”)
factors, including potential impacts on the long-term risk and return profile of
a company. In doing so, the portfolio managers incorporate proprietary ESG
analysis into their investment decisions and have access to third-party
analytics sources, which may include Sustainalytics and
MSCI.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they appear.
The Fund should only be purchased by investors seeking long-term growth of
capital who can withstand the share price volatility of equity investing with a
focus on global stocks.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market countries.
ESG Factor
Risk. Considering ESG factors when evaluating an investment may
result in the selection or exclusion of certain investments based on the
Adviser’s view of these factors and carries the risk that the Fund may
underperform funds that do not take ESG factors into account. In evaluating an
issuer, the Adviser may be dependent upon information and data obtained through
voluntary reporting by issuers or third-party research that may be incomplete,
inaccurate or unavailable, which could impact the portfolio managers’ assessment
of related risks and opportunities.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries, or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
39
Geographic Focus
Risk. The risk that events negatively affecting the fiscal
stability of a particular country or region in which the Fund focuses its
investments will cause the value of the Fund’s shares to decrease, perhaps
significantly. To the extent the Fund focuses its assets in a particular country
or region, the Fund is more vulnerable to financial, economic or other political
developments in that country or region as compared to a fund that does not focus
on holdings in a particular country or region. As a result, the Fund may be more
volatile than a fund which is broadly diversified
geographically.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets, and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Equity-Linked
Instruments Risk. There is a risk that, in addition to market risk
and other risks of the referenced equity security, the Fund may experience a
return that is different from that of the referenced equity security.
Equity-linked instruments also subject the Fund to counterparty risk, including
the risk that the issuing entity may not be able to honor its financial
commitment, which could result in a loss of all or part of the Fund’s
investment.
Participatory Notes
Risk. P‑notes, which are designed to replicate the performance of
certain issuers and markets where direct investment is either impossible or
difficult due to local restrictions, represent interest in securities listed on
certain non‑U.S. exchanges, and thus present similar risks to investing directly
in such securities. P‑notes also expose investors to counterparty risk, which is
risk that the entity issuing the note may not be able to honor its financial
commitments. The liquidity of a P‑note reflects the liquidity in the underlying
security. At times, it may be more illiquid than trading the underlying security
as broker selection is restricted to the underwriter of the
P‑note.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax
returns depend on an investor’s tax situation and may differ from those shown.
After‑tax returns shown are not relevant to investors who hold their Fund shares
through tax‑deferred arrangements,
such
40
as 401(k) plans or individual
retirement accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best
quarter: |
|
|
10/01/2022 – 12/31/2022 – 22.26 |
% |
Worst
quarter: |
|
|
01/01/2020 – 03/31/2020 – (17.90 |
%) |
* |
The
Fund’s fiscal year end is September 30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 22.26%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(0.59 |
%) |
|
|
3.69 |
% |
|
|
5.01 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(0.69 |
%) |
|
|
2.58 |
% |
|
|
3.69 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
0.39 |
% |
|
|
2.84 |
% |
|
|
3.72 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
MSCI
EAFE Index (reflects no deductions for fees or expenses)* |
|
|
(14.45 |
%) |
|
|
1.54 |
% |
|
|
4.74 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
^ |
The Institutional Shares of the
Predecessor Fund commenced operations on September 29,
2016. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
| |
Robert
Lancastle, CFA
Senior
Fund Manager
Length
of Service: Since 2016* |
|
Ben
Leyland, CFA
Senior
Fund Manager
Length
of Service: Since 2016* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
41
|
Buying and
Selling Fund Shares |
|
Minimum Initial
Investment |
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
|
There is no minimum for additional investments.
If you hold shares through a financial intermediary, the financial
intermediary may impose its own, different, investment
minimums. |
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
42
FUND SUMMARY
JOHCM
International Select Fund
(The
Fund is offered on a limited basis only. Refer to “How to Purchase Shares –
Information Regarding Purchases of the JOHCM International Select Fund” on page
119 for more information.)
Investment
Objective
The
investment objective of the JOHCM International Select Fund (the “Fund”) is to
seek long-term capital appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
Annual
Fund Operating Expenses |
|
|
|
| |
|
|
| |
|
| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
|
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
Distribution (Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
0.09 |
% |
|
|
0.07 |
% |
|
|
0.07 |
% |
Total
Annual Fund Operating Expenses1 |
|
|
0.98 |
% |
|
|
1.21 |
% |
|
|
0.96 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.98%,
1.21%, and 0.96% for Institutional Shares, Investor Shares, and
Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
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
43
indicated
and then redeem all of your shares at the end of those periods. The Example also
assumes that each year your investment has a 5% return and Fund operating
expenses remain the same. Although your actual costs and returns might be
different, your approximate costs of investing $10,000 in the Fund would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
100 |
|
|
$ |
312 |
|
|
$ |
542 |
|
|
$ |
1,201 |
|
Investor
Shares |
|
$ |
123 |
|
|
$ |
384 |
|
|
$ |
665 |
|
|
$ |
1,466 |
|
Class Z
Shares |
|
$ |
98 |
|
|
$ |
306 |
|
|
$ |
531 |
|
|
$ |
1,178 |
|
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 recently completed fiscal year, the portfolio turnover rate of
the Fund was 58.91% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its investment objective by investing primarily in
common stocks and other equity securities of companies located outside the
United States. The Fund’s equity securities include common and preferred stock,
rights and warrants. Typically, the Fund invests in a number of different
countries, including emerging markets. The Fund may invest in companies of any
size, including small- and mid capitalization companies, in order to achieve its
objective.
The
portfolio managers seek to identify and make investments based on a
multi-dimensional investment process, considering a number of factors, including
growth, valuation, size, momentum, and beta. Beta measures the volatility of a
stock relative to the overall market. The Fund utilizes a core investment style
with a growth tilt (growth at a reasonable price, or “GARP”) over all
capitalization ranges, which means that the Fund generally invests in larger,
more established companies, but would expect to invest a somewhat greater
portion of its assets in smaller, growth companies than would a typical large
cap mutual fund. The GARP investment strategy is a blend of growth and value
investing and seeks to find companies that have strong earnings growth at a good
price. The Fund seeks those stocks, sectors, and countries with positive
earnings surprises, sustainably high or increasing return on equity, and
attractive valuations. The investment process utilizes a combination of bottom
up investing and top down asset allocation that typically results in a portfolio
of 30 to 60 holdings. Bottom up investing utilizes techniques such as
fundamental analysis to assess growth and value potential of individual issuers.
In conducting fundamental analysis of companies that are being considered for
purchase by the Fund, the portfolio managers will evaluate, among other things,
the financial condition and management of a company, its industry, stability of
the country in which the company is located, and the interrelationship of these
variables over time.
Additionally,
as a standard part of the multi-dimensional investment process, the portfolio
managers consider financially material environmental, social and governance
(“ESG”) factors, including potential impacts on the long-term risk and return
profile of a company. Such factors, alongside other relevant factors, may be
taken into account in the Fund’s securities selection process. Top down asset
allocation utilizes evaluations of, among other things, economic factors
including country risk, sector trends within individual countries and regions,
and currency impact.
Investments
are predominantly in common stock, however the Fund also expects to gain some of
its equity exposure indirectly, such as through purchasing depositary receipts,
exchange-traded funds (“ETFs”) and/or participatory notes. Participatory notes
(commonly known as “P‑notes”) are instruments that provide
exposure
44
to,
primarily, equity securities of issuers listed on a non‑U.S. exchange and are
typically used when a direct investment in the underlying security is either
unpermitted, restricted or uneconomical due to country-specific regulations or
other restrictions.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they appear.
The Fund should only be purchased by investors seeking long-term growth of
capital who can withstand the share price volatility of equity investing with a
focus on international stocks.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries, or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market countries.
ESG Factor
Risk. Considering ESG factors when evaluating an investment may
result in the selection or exclusion of certain investments based on the
Adviser’s view of these factors and carries the risk that the Fund may
underperform funds that do not take ESG factors into account. In evaluating an
issuer, the Adviser may be dependent upon information and data obtained through
voluntary reporting by issuers or third-party research that may be incomplete,
inaccurate or unavailable, which could impact the portfolio managers’ assessment
of related risks and opportunities.
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities held.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated.
45
Any
given investment strategy may fail to produce the intended results, and a Fund’s
portfolio may underperform other comparable funds because of portfolio
management decisions related to, among other things, the selection of
investments, portfolio construction, risk assessments, and/or the outlook on
market trends and
opportunities.
Growth Investing
Risk. The prices of growth stocks may be based largely on
expectations of future earnings, and their prices can decline rapidly and
significantly in reaction to negative news. Growth stocks may underperform
stocks in other broad style categories (and the stock market as a whole) over a
short or long period of time and may shift in and out of favor with investors
generally, sometimes rapidly, depending on changes in market, economic, and
other factors.
GARP Investment
Strategy Risk. GARP investing involves buying stocks that the
portfolio managers believe have reasonable price/earnings ratios in relation to
the relevant company’s current or expected future earnings growth rate. To the
extent the Fund uses a GARP investing strategy, the Fund’s performance may be
adversely affected when stocks preferred by a GARP investing strategy
underperform or are not favored by investors in prevailing market and economic
conditions.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on July 19, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
46
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
|
|
| |
Best
quarter: |
|
|
04/01/2020 – 06/30/2020 – 23.44 |
% |
Worst quarter: |
|
|
04/01/2022 – 06/30/2022 – (20.53 |
%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 14.62%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years^ |
|
|
Since Inception |
|
Institutional
Shares – Before Taxes |
|
|
(32.38 |
%) |
|
|
0.90 |
% |
|
|
6.57 |
% |
|
|
7.31 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(32.46 |
%) |
|
|
0.26 |
% |
|
|
6.10 |
% |
|
|
6.94 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(18.79 |
%) |
|
|
0.99 |
% |
|
|
5.49 |
% |
|
|
6.21 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI
EAFE Index (reflects no deductions for fees or expenses)* |
|
|
(14.45 |
%) |
|
|
1.54 |
% |
|
|
4.67 |
% |
|
|
5.36 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Shares – Before Taxes |
|
|
(32.55 |
%) |
|
|
0.66 |
% |
|
|
6.31 |
% |
|
|
7.06 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
^ |
While Institutional Shares of the
Predecessor Fund commenced operations on July 29,
2009,
Institutional Shares began investing consistent with its investment
objective on July 30, 2009. Investor Shares commenced operations on
March 31,
2010. Historical performance for Investor Shares prior to
its inception is based on the performance of Institutional Shares. The
performance of Investor Shares has been adjusted to reflect differences in
expenses. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
| |
Christopher
J.D. Lees, CFA
Senior
Fund Manager
Length
of Service: Since 2009* |
|
Nudgem
Richyal, CFA
Senior
Fund Manager
Length
of Service: Since 2009* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on July 19, 2021.
|
47
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
48
FUND SUMMARY
Regnan
Global Equity Impact Solutions
Investment
Objective
The
investment objective of Regnan Global Equity Impact Solutions (the “Fund”) is to
seek to achieve long-term capital appreciation by investing in companies that
contribute solutions to addressing the world’s major social and environmental
challenges.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
3.28 |
% |
|
|
3.28 |
% |
|
|
3.28 |
% |
|
|
3.28 |
% |
Total
Annual Fund Operating Expenses |
|
|
4.03 |
% |
|
|
4.13 |
% |
|
|
4.28 |
% |
|
|
4.03 |
% |
Fee
Waivers and Reimbursements1 |
|
|
(3.14 |
%) |
|
|
(3.14 |
%) |
|
|
(3.14 |
%) |
|
|
(3.14 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.89 |
% |
|
|
0.99 |
% |
|
|
1.14 |
% |
|
|
0.89 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.89%,
0.99%, 1.14%, and 0.89% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
49
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 Years |
|
|
10 Years |
|
Institutional
Shares |
|
$ |
91 |
|
|
$ |
938 |
|
|
$ |
1,802 |
|
|
$ |
4,036 |
|
Advisor
Shares |
|
$ |
101 |
|
|
$ |
968 |
|
|
$ |
1,849 |
|
|
$ |
4,122 |
|
Investor
Shares |
|
$ |
116 |
|
|
$ |
1,012 |
|
|
$ |
1,920 |
|
|
$ |
4,249 |
|
Class Z
Shares |
|
$ |
91 |
|
|
$ |
938 |
|
|
$ |
1,802 |
|
|
$ |
4,036 |
|
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 recently completed fiscal year, the Fund’s portfolio turnover
rate was 49.28% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its investment objective by investing primarily in a
high-conviction global equity portfolio of companies the portfolio managers
believe have the potential to contribute solutions to the world’s major social
and environmental challenges. The Fund invests, under normal circumstances, at
least 80% of its net assets (plus the amount of any borrowings for investment
purposes) in equity securities of companies that the portfolio managers believe
satisfy their criteria for positive social or environmental impact. The Adviser
measures this impact by applying the Regnan Taxonomy, as described below, in
conjunction with a proprietary impact assessment, by the portfolio managers.
This impact assessment is based upon qualitative and quantitative assessment,
including the measurement of the activities that currently constitute, or that
the portfolio managers expect over the long term will constitute, a significant
portion (i.e., at least 30%) of a company’s business (using metrics that may
include, without limitation, any of the following: revenues, earnings, capital
expenditures, research and development investment, or book value). The Fund
gains exposure to equity securities either directly or indirectly, through
equity-linked instruments such as participatory notes or index exchange-traded
funds (“ETFs”), and may invest in preferred stocks.
Under
normal market conditions, the Fund will invest at least 40% of its assets in
companies located in countries other than the U.S., including developing,
frontier market or emerging market countries. Notwithstanding, the Fund may
invest a percentage lower than 40% in such non‑U.S. securities if the weighting
of non‑U.S. securities in the Fund’s performance benchmark (currently the MSCI
ACWI Investable Market Index) drops below 45%, in which case the Fund’s minimum
level for investments in non‑U.S. securities must remain within 5% of the
benchmark’s weighting. Under normal circumstances, the Fund expects to invest in
a range of countries, typically at least 10 different countries. While the Fund
may invest in companies of any size, the portfolio managers investment approach
will typically result in a bias toward investment in small and
mid‑capitalization companies, including initial public offerings (“IPOs”). The
Fund’s high-conviction investment approach may result in the Fund having
significant exposure to one or a handful of economic sectors, however the Fund
will not concentrate its investments in a particular
industry.
50
The
Fund’s investment strategy is built on the belief that companies that undertake
to solve the challenges increasingly faced by the environment and society are
well-positioned for growth in the future, particularly where the need for a
solution to a particular challenge remains largely unmet. The portfolio managers
believe that these underserved environmental and societal needs will result in
demand for a product or service that is scarcely available, so companies that
are able to fulfill these needs should therefore be rewarded with revenue growth
over time, as the size of the market into which they sell their core products or
services grows. The portfolio managers believe that this is particularly true if
a company’s solution uses a degree of technological ingenuity or a
differentiated approach. The portfolio managers seek to invest in companies that
sell products or services that are at the early stages of their adoption, as the
economic value of such products and services tends, in the portfolio managers’
view, to be underestimated by the market. The stage at which the portfolio
managers choose to invest may vary by industry or by product, although in each
case, the portfolio managers generally intend to invest before a company’s full
value is recognized by the broader
market.
For
purposes of establishing the Fund’s investment universe, the portfolio managers
make use of a proprietary research framework, referred to as the Regnan
Taxonomy, in an effort to gain exposure to truly mission-driven companies that
are able to drive additional positive impacts through the sale of an innovative
solution to a particular environmental or social problem. In identifying
investment opportunities, the Regnan Taxonomy seeks to: (i) understand and
identify the underlying environmental and social problems which need to be
addressed; (ii) identify the products and services that contribute to
finding solutions to these problems; and (iii) identify suitable companies
that are selling these products and services. In identifying the underlying
environmental and social problems to be addressed, the Regnan Taxonomy draws on
the targets that underlie the 17 United Nations Sustainable Development Goals
(the “UN SDGs”). The UN SDGs may change over time, and the Regnan Taxonomy may
also incorporate other goals linked to other sustainability frameworks as
determined by the Adviser. The Regnan Taxonomy uses proprietary research to
determine which companies derive a significant portion of their revenue from
producing the products and services that contribute to finding solutions to
these problems.
Once
the investment universe is established, the portfolio managers undertake
qualitative analyses of potential candidates, including a fundamental business
analysis and an extensive impact assessment that seeks to evaluate companies’
potential to drive a positive impact in the future. Following the impact
assessment, the portfolio managers then undertake a comprehensive value analysis
and a risk assessment. The value analysis looks at the value that each holding
is expected to generate and whether the value is distributed equitably to all
stakeholders. The risk assessment seeks to identify the key risks that could
potentially derail the company, what kinds and levels of risks are acceptable,
how the risks can be monitored, and whether the company could be encouraged to
address the risks through engagement with the
Fund.
The
intended outcome of the investment process is a portfolio that will typically
consist of between 25 and 50 companies. The portfolio managers select companies
without regard to the Fund’s performance benchmark and expects to depart
significantly from the holdings and weightings in that benchmark. The portfolio
managers add issuers to the Fund’s portfolio typically with the intention of
holding the securities for longer periods (typically at least 5 years), which is
expected to result in a relatively low portfolio turnover rate that aligns with
the Fund’s long-term investment outlook. Although the Fund did not invest
significantly in derivatives instruments as of the most recent fiscal year end,
it may do so at any time.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the
Fund are not deposits of a bank and are not
51
insured or guaranteed by the
Federal Deposit Insurance Corporation (“FDIC”) or any other government
agency. The principal risks of investing in the Fund (in
alphabetical order after the first five risks)
are:
Impact Investing
Risk. The Fund intends to invest its assets in companies that meet
its impact investing criteria pursuant to the Regnan Taxonomy. This may affect
the Fund’s exposure to certain companies or industries and the Fund will forego
certain investment opportunities. The Fund’s results may be lower than other
funds that do not seek to invest in companies based on expected environmental or
societal impact outcomes. The portfolio managers seek to identify companies that
they believe may have a positive environmental or societal impact outcome, but
may not be successful in assessing and identifying companies that have or will
have a positive environmental or societal impact outcomes. Successful
application of the Fund’s impact investing strategy will depend on its portfolio
managers’ ability to identify and analyze a company’s impact, and there can be
no assurance that the strategy or techniques employed will be successful.
Further, investors may differ in their views of what constitutes positive or
negative environmental or societal impact outcomes. As a result, the Fund may
invest in companies that do not reflect the beliefs and values of any particular
investor.
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Focused Investment
Risk. Focusing investments in a particular market, sector or value
chain (which may include issuers in a number of different industries) increases
the risk of loss because the stocks of many or all of the companies in such
market, sector or value chain may decline in value due to economic, market,
technological, political or regulatory developments adversely affecting the
market or value chain.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets and
financial resources, may sell products or services that are at the early stages
of their adoption, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
Derivatives
Risk. The Fund’s use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include
(i) the risk that the counterparty to a derivative transaction may not
fulfill its contractual obligations; (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or
index.
52
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market
countries.
Equity-Linked
Instruments Risk. There is a risk that, in addition to market risk
and other risks of the referenced equity security, the Fund may experience a
return that is different from that of the referenced equity security.
Equity-linked instruments also subject the Fund to counterparty risk, including
the risk that the issuing entity may not be able to honor its financial
commitment, which could result in a loss of all or part of the Fund’s
investment.
Growth Investing
Risk. The prices of growth stocks may be based largely on
expectations of future earnings, and their prices can decline rapidly and
significantly in reaction to negative news. Growth stocks may underperform
stocks in other broad style categories (and the stock market as a whole) over a
short or long period of time and may shift in and out of favor with investors
generally, sometimes rapidly, depending on changes in market, economic, and
other factors.
Hedging
Risk. Hedging is a strategy in which the Fund uses a derivative or
other security to offset certain risks associated with other Fund holdings or to
render the portfolio more resilient to market fluctuations. There can be no
assurance that the Fund’s hedging strategy will reduce risk or that hedging
transactions will be either available or cost effective. The Fund is not
required to use hedging and may choose not to do
so.
IPO
Risk. The Fund may purchase securities in IPOs. These securities
are subject to many of the same risks of investing in companies with smaller
market capitalizations. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods. In
addition, the prices of securities sold in IPOs may be highly
volatile.
Limited History of
Operations. The Fund is a newly organized, diversified, open‑end
management investment company with a limited operating history. As a result,
prospective investors have a limited track record or history on which to base
their investment decision.
Liquidity
Risk. The Fund may make investments that are illiquid or that may
become less liquid in response to market developments or adverse investor
perceptions. Illiquid investments may be more difficult to
value.
Long-Term Investment
Strategy Risk. The Fund pursues a long-term investment approach,
typically seeking returns over a period of several years. This investment style
may cause the Fund to lose money or underperform compared to its benchmark index
or other mutual funds over extended periods of time, and the Fund may not
perform as expected in the long term. An investment in the Fund may be more
suitable for long-term investors who can bear the risk of short- or medium-term
fluctuations in the value of the Fund’s portfolio.
Management
Risk. The Adviser’s judgments about the attractiveness, value and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
Participatory Notes
Risk. P‑notes, which are designed to replicate the performance of
certain issuers and markets where direct investment is either impossible or
difficult due to local restrictions, represent interest in
securities
53
listed
on certain non‑U.S. exchanges, and thus present similar risks to investing
directly in such securities. P‑notes also expose investors to counterparty risk,
which is risk that the entity issuing the note may not be able to honor its
financial commitments. The liquidity of a P‑note reflects the liquidity in the
underlying security. At times, it may be more illiquid than trading the
underlying security as broker selection is restricted to the underwriter of the
P‑note.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including any changes to applicable tax laws and regulations,
could impair the ability of the Fund to achieve its investment objective and
could increase the operating expenses of the
Fund.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
Performance
Information
The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund by showing how the Fund’s performance has varied from year to year,
and by showing how the Fund’s average annual returns compare with those of a
broad measure of market performance. Performance reflects
contractual fee waivers in effect. If fee waivers were not in place, performance
would be reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
| |
Best
quarter: |
|
10/01/2022 – 12/31/2022 – 12.86% |
Worst
quarter: |
|
04/01/2022 – 06/30/2022 – (17.60%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 12.86%. |
54
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(25.04 |
%) |
|
|
(22.51 |
%) |
Institutional
Shares – After Taxes on Distributions |
|
|
(24.99 |
%) |
|
|
(22.47 |
%) |
| |
|
|
|
|
|
|
|
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(14.75 |
%) |
|
|
(16.91 |
%) |
| |
|
|
|
|
|
|
|
MSCI
ACWI Investable Market Index (reflects no deductions for fees or
expenses)* |
|
|
(18.40 |
%) |
|
|
(11.67 |
%) |
| |
|
|
|
|
|
|
|
^ |
The Institutional Shares of the Fund
commenced operations on August 23,
2021. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Portfolio Managers
|
| |
Mohsin
Ahmad, CFA
Senior
Fund Manager
Length
of Service: Since 2021 (inception) |
|
Tim
Crockford
Senior
Fund Manager
Length
of Service: Since 2021 (inception) |
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No
minimum |
|
No
minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
55
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
56
FUND SUMMARY
TSW
Emerging Markets Fund
Investment
Objective
The
investment objective of the TSW Emerging Markets Fund (the “Fund”) is to
maximize long-term capital appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
1.42 |
% |
|
|
1.42 |
% |
|
|
1.42 |
% |
|
|
1.42 |
% |
Total
Annual Fund Operating Expenses |
|
|
2.22 |
% |
|
|
2.32 |
% |
|
|
2.47 |
% |
|
|
2.22 |
% |
Fee
Waivers and Reimbursements1 |
|
|
(1.23 |
%) |
|
|
(1.23 |
%) |
|
|
(1.23 |
%) |
|
|
(1.23 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.99 |
% |
|
|
1.09 |
% |
|
|
1.24 |
% |
|
|
0.99 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.99%,
1.09%, 1.24%, and 0.99% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
57
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
101 |
|
|
$ |
576 |
|
|
$ |
1,077 |
|
|
$ |
2,458 |
|
Advisor
Shares |
|
$ |
111 |
|
|
$ |
606 |
|
|
$ |
1,128 |
|
|
$ |
2,561 |
|
Investor
Shares |
|
$ |
126 |
|
|
$ |
652 |
|
|
$ |
1,205 |
|
|
$ |
2,713 |
|
Class Z
Shares |
|
$ |
101 |
|
|
$ |
576 |
|
|
$ |
1,077 |
|
|
$ |
2,458 |
|
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
total annual Fund operating expenses or in the example, affect the Fund’s
performance. During the period from Fund inception through September 30,
2022, the Fund’s portfolio turnover rate was 11.47% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in equity securities of
companies that are located in emerging market countries, including frontier
markets. The Fund’s investments in equity securities can include common and
preferred stocks, as well as rights and warrants to subscribe to common stock or
other equity securities. The Fund obtains its exposure to equity securities
either directly or indirectly, including through Depositary Receipts or
participatory notes. Emerging market countries are those countries included in
the MSCI Emerging Markets Index and MSCI Frontier Markets Index and other
countries with similar emerging or frontier market characteristics, (for
example, relatively low gross national product per capita compared to the
world’s major economies).
The
Fund utilizes a bottom‑up, business-focused approach based on study of
individual companies and their competitive dynamics of the industries in which
they participate. The portfolio manager strives to identify companies whose
shares are underpriced relative to their intrinsic value. The portfolio is
managed with reference to the MSCI Emerging Markets Index as to country
allocation, but the Fund is not benchmark constrained. The portfolio manager
intends, under normal circumstances, to have approximately 40‑80 equity
securities in the Fund’s portfolio.
Pursuant
to a value investing philosophy, the Fund seeks to invest in securities that the
portfolio manager believes provide a discount or “margin of safety” between a
security’s price and what the portfolio manager believes to be the true value of
the underlying business (which is sometimes referred to as “intrinsic value”).
In order to first narrow the Fund’s investment universe, the portfolio manager
uses quantitative tools linked to a variety of relative value assessments
(including cash flow, earnings and share price). Next, the portfolio manager
combines fundamental research and qualitative analysis to make individual
security selections. The portfolio manager seeks to invest in the best
risk-reward candidates within the investment universe, defined as companies that
he believes have both attractive fundamentals (for example, a company’s
revenues, earnings,
58
or
management) and are undervalued. The portfolio manager also analyzes
country-specific factors such as geopolitical risk and its potential impact on
expected returns.
The
Fund may invest in unaffiliated investment companies, including exchange-traded
funds, and may also invest a portion of its assets in real estate investment
trusts (“REITs”). The Fund typically does not engage in active hedging of
currency but retains flexibility to do so depending on market
performance.
The
Fund may invest a significant portion of its assets in investments located in
one country or a small number of countries. The Fund’s benchmark index currently
includes substantial exposure to China. These countries may change from time to
time.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
The Fund should only be purchased by investors seeking long-term growth of
capital who can withstand the share price volatility of equity investing with a
focus on emerging market stocks. Below are the principal risks of investing in
the Fund. All of the risks listed below are material to the Fund, regardless of
the order in which they appear.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Emerging Markets
Risk. In addition to the risks of investing in non‑U.S.
investments generally, emerging markets investments are subject to greater risks
arising from political or economic instability, nationalization or confiscatory
taxation, currency exchange restrictions, sanctions by other countries (such as
the United States) and an issuer’s unwillingness or inability to make principal
or interest payments on its obligations. Emerging markets companies may be
smaller and have shorter operating histories than companies in developed
markets. To the extent a Fund invests in frontier countries, these risks will be
magnified. Frontier countries generally have smaller economies or less developed
capital markets than traditional emerging market countries.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do
so.
Currency
Risk. Investments in non‑U.S. countries are also subject to
currency risk. As the Fund’s investments in non‑U.S. securities are generally
denominated in non‑U.S. currencies, changes in the value of those currencies
compared to the U.S. dollar may affect the value of the Fund’s investments. Some
of the currencies in emerging markets have experienced devaluations relative to
the U.S. dollar, and major adjustments have been made periodically in certain
such currencies. Certain developing countries face serious exchange
constraints.
59
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities
held.
China
Risk. To the extent a Fund invests in securities of Chinese
issuers, it may be subject to certain risks and considerations not typically
associated with investing in securities of U.S. issuers, including, among
others, more frequent trading suspensions and government interventions
(including by nationalization of assets), currency exchange rate fluctuations or
blockages, limits on the use of brokers and on non‑U.S. ownership, variable
interest entities risks, different financial reporting standards, higher
dependence on exports and international trade, potential for increased trade
tariffs, embargoes and other trade limitations, and custody
risks.
REIT and Real
Estate-Related Investment Risk. Adverse changes in the real estate
markets may affect the value of REIT investments.
Management
Risk. The Adviser’s judgments about the attractiveness, value, and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Geographic Focus
Risk. The risk that events negatively affecting the fiscal
stability of a particular country or region in which the Fund focuses its
investments will cause the value of the Fund’s shares to decrease, perhaps
significantly. To the extent the Fund focuses its assets in a particular country
or region, the Fund is more vulnerable to financial, economic, or other
political developments in that country or region as compared to a fund that does
not focus on holdings in a particular country or region. As a result, the Fund
may be more volatile than a fund which is broadly diversified
geographically.
Investment Company
Risk. lf a Fund invests in shares of another investment company,
shareholders will indirectly bear fees and expenses charged by the underlying
investment companies in which the Fund invests in addition to the Fund’s direct
fees and expenses. The Fund also will incur brokerage costs when it purchases
ETFs and closed‑end funds. Furthermore, investments in other funds could affect
the timing, amount, and character of distributions to shareholders and therefore
may increase the amount of taxes payable by investors in the
Fund.
Small‑Cap and Mid‑Cap
Company Risk. The small- and mid‑capitalization companies in which
the Fund invests in may be more vulnerable to adverse business or economic
events than larger, more established companies. In particular, these small- and
mid‑capitalization companies may have limited product lines, markets, and
financial resources, and may depend upon relatively small management groups.
Therefore, small- and mid‑capitalization stocks may be more volatile than those
of larger companies.
Participatory Notes
Risk. P‑notes, which are designed to replicate the performance of
certain issuers and markets where direct investment is either impossible or
difficult due to local restrictions, represent interest in
securities
60
listed
on certain non‑U.S. exchanges, and thus present similar risks to investing
directly in such securities. P‑notes also expose investors to counterparty risk,
which is risk that the entity issuing the note may not be able to honor its
financial commitments. The liquidity of a P‑note reflects the liquidity in the
underlying security. At times, it may be more illiquid than trading the
underlying security as broker selection is restricted to the underwriter of the
P‑note.
Limited History of
Operations. The Fund is a newly organized, diversified, open‑end
management investment company with a limited operating history. As a result,
prospective investors have a limited track record or history on which to base
their investment decision.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including changes to applicable tax laws and regulations, could
impair the ability of the Fund to achieve its investment objective and could
increase the operating expenses of the
Fund.
Liquidity
Risk. The Fund may make investments that are illiquid or that may
become less liquid in response to market developments or adverse investor
perceptions. Illiquid investments may be more difficult to
value.
Performance
Information
The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund by showing how the Fund’s performance has varied from year to year,
and by showing how the Fund’s average annual returns compare with those of a
broad measure of market performance. Performance reflects
contractual fee waivers in effect. If fee waivers were not in place, performance
would be reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
| |
Best quarter: |
|
10/01/2022 – 12/31/2022 – 17.19% |
Worst quarter: |
|
04/01/2022 – 06/30/2022 – (13.40%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 17.19%. |
61
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(16.79 |
%) |
|
|
(14.67 |
%) |
Institutional
Shares – After Taxes on Distributions |
|
|
(16.93 |
%) |
|
|
(14.82 |
%) |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(9.54 |
%) |
|
|
(11.00 |
%) |
| |
|
|
|
|
|
|
|
MSCI
Emerging Markets Index (reflects no deductions for fees or
expenses)* |
|
|
(20.09 |
%) |
|
|
(17.69 |
%) |
| |
|
|
|
|
|
|
|
^ |
The Institutional Shares of the Fund
commenced operations on December 21,
2021. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Subadviser
The
Fund’s subadviser is Thompson, Siegel & Walmsley LLC (“TSW” or the
“Subadviser”).
Portfolio Manager
|
Elliott
W. Jones, CFA
Portfolio
Manager
Length
of Service: Since 2021 (inception) |
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No minimum |
|
No minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
62
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
63
FUND SUMMARY
TSW
High Yield Bond Fund
Investment
Objective
The primary investment
objective of the TSW High Yield Bond Fund (the “Fund”) is to seek high current
income with a secondary focus on
capital appreciation.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.50 |
% |
|
|
0.50 |
% |
|
|
0.50 |
% |
|
|
0.50 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses |
|
|
1.40 |
% |
|
|
1.40 |
% |
|
|
1.40 |
% |
|
|
1.40 |
% |
Total
Annual Fund Operating Expenses |
|
|
1.90 |
% |
|
|
2.00 |
% |
|
|
2.15 |
% |
|
|
1.90 |
% |
Fee
Waivers and Reimbursements1 |
|
|
(1.25 |
%) |
|
|
(1.25 |
%) |
|
|
(1.25 |
%) |
|
|
(1.25 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.65 |
% |
|
|
0.75 |
% |
|
|
0.90 |
% |
|
|
0.65 |
% |
1 |
JOHCM
(USA) Inc (the “Adviser”) has contractually agreed to waive fees and
reimburse expenses to the extent that Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.65%,
0.75%, 0.90%, and 0.65% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be terminated by the Board of
Trustees at any time and will terminate automatically upon termination of
the Investment Advisory
Agreement. |
64
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
66 |
|
|
$ |
475 |
|
|
$ |
910 |
|
|
$ |
2,120 |
|
Advisor
Shares |
|
$ |
77 |
|
|
$ |
506 |
|
|
$ |
962 |
|
|
$ |
2,227 |
|
Investor
Shares |
|
$ |
92 |
|
|
$ |
552 |
|
|
$ |
1,039 |
|
|
$ |
2,384 |
|
Class Z
Shares |
|
$ |
66 |
|
|
$ |
475 |
|
|
$ |
910 |
|
|
$ |
2,120 |
|
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
total annual Fund operating expenses or in the example, affect the Fund’s
performance. During the period from Fund inception through September 30,
2022, the Fund’s portfolio turnover rate was 31.64% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in high yield fixed income
securities, also known as “junk bonds” (higher risk, lower rated fixed income
securities rated BB or below by at least one nationally recognized statistical
rating organization or determined to be of a similar quality by TSW). Under
normal circumstances, the Fund will not invest more than 20% of its net assets
in debt instruments that, at the time of purchase, are rated CCC or below by at
least one nationally recognized statistical rating organization or determined to
be of a similar quality by TSW.
The
Fund’s fixed income securities include primarily corporate debt. The Fund, from
time to time, will make opportunistic investments in other fixed income
securities such as convertible bonds, preferred securities, loans (senior
floating rate loans as well as other secured and unsecured loans) and loan
participations. The Fund retains flexibility to seek temporary, indirect
exposure (e.g., through pooled investment vehicles) to fixed income securities,
such as when managing inflows into the Fund. The Fund expects to invest
primarily in securities denominated in U.S. dollars and may invest in companies
of any size, including small- and mid‑capitalization companies. The Fund’s
portfolio is expected to have a weighted average duration of between three and
seven years under normal conditions.
The
portfolio manager follows a disciplined, bottom‑up research process that focuses
on analyzing individual issuers. This process aims to identify securities
showing stable or improving credit metrics that offer strong relative value in
the context of the high yield market. The portfolio manager evaluates
quantitative as well as qualitative factors in his fundamental analysis. While
the investment process does not impose a top‑down allocation to countries or
sectors, the portfolio manager attempts to reduce risk through diversification
and credit analysis as well as by considering the sector allocations of the
Fund’s benchmark.
The
Fund may invest in securities that are issued through private offerings without
registration with the Securities and Exchange Commission under the Securities
Act. Accordingly, the Fund expects to invest a
65
significant
portion of its assets in securities that are only offered and sold to “qualified
institutional buyers”, pursuant to Rule 144A under the Securities Act, as such
securities are prevalent in the high yield bond
market.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
Below are the principal risks of investing in the Fund. All of the risks listed
below are material to the Fund, regardless of the order in which they
appear.
Credit
Risk. An issuer of debt securities may fail to make interest
payments or repay principal when due, in whole or in part. Changes in an
issuer’s financial strength or in a security’s credit rating may affect a
security’s value.
Fixed Income
Risk. Fixed income securities will increase or decrease in value
based on changes in interest rates. If rates increase, the value of the Fund’s
fixed income securities generally declines. On the other hand, if rates fall,
the value of the fixed income securities generally increases. Your investment
will decline in value if the value of the Fund’s investments
decreases.
Interest Rate
Risk. When interest rates increase, fixed income securities or
instruments held by the Fund will generally decline in value. When interest
rates fall, the value of fixed income securities generally increase. Long-term
fixed income securities or instruments will normally have more price volatility
because of this risk than short term fixed income securities or instruments. The
risks associated with changing interest rates may have unpredictable effects on
the markets and the Fund’s investments. Fluctuations in interest rates may also
affect the liquidity of fixed income securities and instruments held by the
Fund. Your investment will decline in value if the value of the Fund’s
investments decreases. Recently, there have been inflationary price movements,
which have caused the fixed income securities markets to experience heightened
levels of interest rate volatility and liquidity risk. The risks associated with
rising interest rates may be particularly acute in the current market
environment because the Federal Reserve Board recently raised rates and may
continue to do so.
Focused Investment
Risk. Focusing investments in a particular market, sector or value
chain (which may include issuers in a number of different industries) increases
the risk of loss because the stocks of many or all of the companies in such
market, sector or value chain may decline in value due to economic, market,
technological, political or regulatory developments adversely affecting the
market or value chain.
High Yield (“Junk
Bond”) Investments Risk. Below investment grade fixed income
securities, also known as “junk bonds,” are not investment grade and are
generally considered speculative because they present a greater risk of loss
than higher quality debt securities. These lower-rated or defaulted debt
securities may fluctuate more in price, and are less liquid than higher-rated
securities because issuers of such lower-rated debt securities are not as strong
financially, and are more likely to encounter financial difficulties and be more
vulnerable to adverse changes in the
economy.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
66
Loan-Related
Investments Risk. In addition to risks generally associated with
debt investments (e.g., interest rate risk and default risk), loan-related
investments such as loan participations and assignments are subject to other
risks. Although a loan obligation may be fully collateralized at the time of
acquisition, the collateral may decline in value, be or become illiquid or less
liquid, or lose all or substantially all of its value subsequent to
investment.
Liquidity
Risk. The Fund may make investments that are illiquid or that may
become less liquid in response to market developments or adverse investor
perceptions. Illiquid investments may be more difficult to
value.
Limited History of
Operations. The Fund is a newly organized, diversified, open‑end
management investment company with a limited operating history. As a result,
prospective investors have a limited track record or history on which to base
their investment decision.
Management
Risk. The Adviser’s judgments about the attractiveness, value and
potential appreciation of, or social and environmental factors related to, a
particular asset class or individual security in which the Fund invests may
prove to be incorrect, and there is no guarantee that individual securities will
perform as anticipated. Any given investment strategy may fail to produce the
intended results, and a Fund’s portfolio may underperform other comparable funds
because of portfolio management decisions related to, among other things, the
selection of investments, portfolio construction, risk assessments, and/or the
outlook on market trends and
opportunities.
ETF
Risk. Shareholders of the Fund will indirectly be subject to the
fees and expenses of the individual ETFs in which the Fund invests. In addition,
an ETF may not replicate exactly the performance of the benchmark index it seeks
to track for a number of reasons, including transaction costs incurred by the
ETF, the temporary unavailability of certain index securities in the secondary
market or discrepancies between the ETF and the index with respect to the
weighting of securities or the number of securities
held.
Investment Company
Risk. If the Fund invests in shares of another investment company,
shareholders will indirectly bear fees and expenses charged by the underlying
investment companies in which the Fund invests in addition to the Fund’s direct
fees and expenses. The Fund also will incur brokerage costs when it purchases
investment company securities, including ETFs and closed‑end funds. Furthermore,
investments in other funds could affect the timing, amount, and character of
distributions to shareholders and therefore may increase the amount of taxes
payable by investors in the Fund.
Preferred Stock
Risk. The value of preferred stocks will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
value of preferred stock. Preferred stocks are also subject to credit risk,
which is the possibility that an issuer of preferred stock will fail to make its
dividend payments.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including any changes to applicable tax laws and regulations,
could impair the ability of the Fund to achieve its investment objective and
could increase the operating expenses of the
Fund.
Performance
Information
The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund by showing how the Fund’s performance has varied from year to year,
and by showing how the Fund’s average annual returns compare with those of a
broad measure of market performance. Performance reflects
contractual fee waivers in effect. If fee waivers were not in place, performance
would be reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
67
Annual
Total Returns – Institutional Shares for year ended
December 31*
|
| |
Best
quarter: |
|
10/01/2022 – 12/31/2022 – 4.11% |
Worst
quarter: |
|
04/01/2022 – 06/30/2022 – (9.87%) |
* |
The Fund’s fiscal year end is September
30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 4.11%. |
Average
Annual Total Returns – for the Periods Ended December 31,
2022
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Inception^ |
|
Institutional
Shares – Before Taxes |
|
|
(10.14 |
%) |
|
|
(7.82 |
%) |
Institutional
Shares – After Taxes on Distributions |
|
|
(12.06 |
%) |
|
|
(9.76 |
%) |
| |
|
|
|
|
|
|
|
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
(5.98 |
%) |
|
|
(6.71 |
%) |
| |
|
|
|
|
|
|
|
ICE
BofA U.S. High Yield Constrained Index (reflects no deductions for fees or
expenses)* |
|
|
(11.16 |
%) |
|
|
(8.89 |
%) |
| |
|
|
|
|
|
|
|
^ |
The Institutional Shares of the Fund
commenced operations on October 26,
2021. |
* |
Index returns shown are net of
withholding taxes. |
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Subadviser
The
Fund’s subadviser is Thompson, Siegel & Walmsley LLC (“TSW” or the
“Subadviser”).
Portfolio Manager
|
William
M. Bellamy, CFA
Portfolio
Manager
Length
of Service: Since 2021 (inception) |
68
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No
minimum |
|
No
minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
69
FUND SUMMARY
TSW
Large Cap Value Fund
Investment
Objective
The
TSW Large Cap Value Fund (the “Fund”) seeks maximum long-term total return,
consistent with reasonable risk to principal.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
Advisor Shares |
|
|
Investor Shares |
|
|
Class Z Shares |
|
Shareholder Fees (Fees paid directly from
your investment) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
None |
|
|
|
None |
|
|
|
None |
|
|
|
None |
|
Maximum
Deferred Sales Charge (Load) Imposed on Purchases (as a percentage of net
asset value) |
|
|
None |
|
|
|
None |
|
|
|
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) |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Management
Fee |
|
|
0.58 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
|
|
0.58 |
% |
Distribution
(Rule 12b‑1) Fees |
|
|
None |
|
|
|
0.10 |
% |
|
|
0.25 |
% |
|
|
None |
|
Other
Expenses1 |
|
|
0.27 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
Acquired
Fund Fees and Expenses2 |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
Total
Annual Fund Operating Expenses |
|
|
0.87 |
% |
|
|
0.97 |
% |
|
|
1.12 |
% |
|
|
0.87 |
% |
Fee
Waivers and Reimbursements3 |
|
|
(0.12 |
%) |
|
|
(0.12 |
%) |
|
|
(0.12 |
%) |
|
|
(0.12 |
%) |
Total
Annual Fund Operating Expenses After Fee Waivers and
Reimbursements |
|
|
0.75 |
% |
|
|
0.85 |
% |
|
|
1.00 |
% |
|
|
0.75 |
% |
1 |
Restated to reflect current
expenses. |
2 |
Expenses associated with
investments in underlying investment companies are excluded from the
contractual expense limitation. |
3 |
JOHCM (USA) Inc (the
“Adviser”) has contractually agreed to waive fees and reimburse expenses
to the extent that Total Annual Fund Operating Expenses (excluding
brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) exceed 0.73%,
0.83%, 0.98% and 0.73% for Institutional Shares, Advisor Shares, Investor
Shares, and Class Z Shares, respectively, until January 28,
2024. If it becomes unnecessary for the Adviser to waive
fees or make reimbursements, the Adviser may recapture any of its prior
waivers or reimbursements for a period not to exceed three years from the
date on which the waiver or reimbursement was made to the extent that such
a recapture does not cause the Total Annual Fund Operating Expenses
(excluding brokerage costs, interest, taxes, dividends, litigation and
indemnification expenses, expenses associated with investments in
underlying investment companies, and extraordinary expenses) to exceed the
current expense limitation or the applicable expense limitation that was
in effect at the time of the waiver or reimbursement. The agreement to
waive fees and reimburse expenses may be |
70
|
terminated by the Board
of Trustees at any time and will terminate automatically upon termination
of the Investment Advisory Agreement. Total Annual Fund Operating Expenses
After Fee Waivers and Reimbursements may exceed 0.73%, 0.83%, 0.98%, and
0.73% for Institutional Shares, Advisor Shares, Investor Shares, and
Class Z Shares, respectively, due to certain excluded expenses.
|
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 each year your
investment has a 5% return and Fund operating expenses remain the same. The
contractual expense limitation for the Fund is reflected only in the 1 year
example and for the first year of the 3, 5 and 10 year examples. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
3 years |
|
|
5 years |
|
|
10 years |
|
Institutional
Shares |
|
$ |
77 |
|
|
$ |
266 |
|
|
$ |
470 |
|
|
$ |
1,061 |
|
Advisor
Shares |
|
$ |
87 |
|
|
$ |
297 |
|
|
$ |
525 |
|
|
$ |
1,179 |
|
Investor
Shares |
|
$ |
102 |
|
|
$ |
344 |
|
|
$ |
605 |
|
|
$ |
1,352 |
|
Class Z
Shares |
|
$ |
77 |
|
|
$ |
266 |
|
|
$ |
470 |
|
|
$ |
1,061 |
|
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
total annual Fund operating expenses or in the example, affect the Fund’s
performance. Portfolio turnover rates excludes securities received or delivered
from in‑kind fund share transactions. High levels of portfolio turnover may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses above, can adversely affect the Fund’s
investment performance. During its most recent fiscal year, the Fund’s portfolio
turnover rate was 46.37% of the average value of its portfolio.
Principal
Investment Strategies
The
Fund invests, under normal circumstances, at least 80% of its net assets (plus
the amount of any borrowings for investment purposes) in equity securities of
companies with large market capitalizations. The Fund will invest primarily in a
diversified portfolio of common stocks. Although the Fund will primarily draw
its holdings from larger, more seasoned or established companies, it may also
invest in companies of varying size as measured by assets, sales or market
capitalization. The Fund may invest up to 20% of its total assets in American
Depositary Receipts (“ADRs”).
The
Fund utilizes a bottom‑up, business-focused approach based on study of
individual companies and the competitive dynamics of their respective
industries. Pursuant to a value investing philosophy, the Fund seeks to invest
in securities the portfolio managers believe provide a discount (or “margin of
safety”) between a security’s price and what the portfolio managers believe to
be the true value of the underlying business (which is sometimes referred to as
“intrinsic value”). The portfolio managers intend, under normal circumstances,
to have approximately 30‑70 equity securities in the Fund’s portfolio.
In
seeking stocks whose share are underpriced relative to their intrinsic value,
the portfolio managers first narrow the investment universe using quantitative
tools linked to a variety of relative value assessments (including cash flow,
earnings and share price). The portfolio managers then combine fundamental
research and
71
qualitative
analysis to make individual security selections. The portfolio managers seek to
invest in the best risk-reward candidates within the investment universe,
companies that they believe remain undervalued despite having attractive
fundamentals. The portfolio managers also assess a company’s future cash flows,
catalysts that may reduce the gap between share price and intrinsic value within
the next several years, and other potential impacts on expected
returns.
The
Fund may invest in real estate investment trusts (“REITs”). Although the Fund
did not invest significantly in derivatives instruments as of the most recent
fiscal year end, it may do so at any
time.
Principal
Investment Risks
All
investments carry a certain amount of risk, and the Fund cannot guarantee that
it will achieve its investment objective. The value of the Fund’s investments
will fluctuate with market conditions, and the value of your investment in the
Fund also will vary. You could lose money on your investment in the Fund, or
the Fund could perform worse than other investments.
Investments in the Fund are not
deposits of a bank and are not insured or guaranteed by the Federal Deposit
Insurance Corporation (“FDIC”) or any other government agency.
The principal risks of investing in the Fund (in alphabetical order after the
first five risks) are:
Equity Securities
Risk. The risk that events negatively affecting issuers,
industries or financial markets in which the Fund invests will impact the value
of the stocks held by the Fund and thus, the value of the Fund’s shares over
short or extended periods.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do so.
Sector
Risk. The Fund may focus its investments in securities of a
particular sector. Economic, legislative, or regulatory developments may occur
that significantly affect the sector. This may cause the Fund’s net asset value
to fluctuate more than that of a fund that does not focus in a particular
sector.
Focused Investment
Risk. Focusing investments in a particular market, sector or value
chain (which may include issuers in a number of different industries) increases
the risk of loss because the stocks of many or all of the companies in such
market, sector or value chain may decline in value due to economic, market,
technological, political or regulatory developments adversely affecting the
market or value chain.
Non‑U.S. Securities
Risk. Investing in non‑U.S. securities poses additional market
risks since political and economic events unique in a country or region will
affect those markets and their issuers and may not affect the U.S. economy or
U.S. issuers. In addition, issuers of non‑U.S. securities often are not subject
to as much regulation as U.S. issuers, and the reporting, accounting, custody,
and auditing standards to which those issuers are subject often are not as
rigorous as U.S. standards. Investments in non‑U.S. securities may also be
subject to greater environmental, credit and information risks. The Fund’s
investments in non‑U.S. securities also are subject to non‑U.S. currency
fluctuations and other non‑U.S. currency-related risks. Non‑U.S. securities may
be subject to higher volatility than U.S. securities, varying degrees of
regulation and limited liquidity.
Derivatives
Risk. The Fund’s use of derivative instruments involves risks
different from, or possibly greater than, the risks associated with investing
directly in securities and other traditional investments. These risks include
(i) the risk that the counterparty to a derivative transaction may not
fulfill its contractual obligations; (ii) risk of mispricing or improper
valuation; and (iii) the risk that changes in the value of the derivative
may not correlate perfectly with the underlying asset, rate or
index.
Long-Term Investment
Strategy Risk. The Fund pursues a long-term investment approach,
typically seeking returns over a period of several years. This investment style
may cause the Fund to lose money or underperform
72
compared
to its benchmark index or other mutual funds over extended periods of time, and
the Fund may not perform as expected in the long term. An investment in the Fund
may be more suitable for long-term investors who can bear the risk of short- or
medium-term fluctuations in the value of the Fund’s
portfolio.
Management
Risk. The Adviser or Subadviser’s judgments
about the attractiveness, value and potential appreciation of, or social and
environmental factors related to, a particular asset class or individual
security in which the Fund invests may prove to be incorrect, and there is no
guarantee that individual securities will perform as anticipated. Any given
investment strategy may fail to produce the intended results, and a Fund’s
portfolio may underperform other comparable funds because of portfolio
management decisions related to, among other things, the selection of
investments, portfolio construction, risk assessments, and/or the outlook on
market trends and
opportunities.
Regulatory
Risk. Changes in the laws or regulations of the United States or
other countries, including any changes to applicable tax laws and regulations,
could impair the ability of the Fund to achieve its investment objective and
could increase the operating expenses of the
Fund.
REIT and Real
Estate-Related Investment Risk. Adverse changes in the real estate
markets may affect the value of REIT
investments.
Performance
Information
The
Fund commenced operations upon the reorganization of the Predecessor Fund into
the Fund on December 6, 2021. With the reorganization, the Fund assumed the
financial and performance history of the Predecessor Fund. The bar chart
and performance table below provide an indication of the risks of an investment
in the Fund (and the Predecessor Fund for periods prior to the reorganization)
by showing how the Fund’s performance has varied from year to year, and by
showing how the Fund’s average annual returns compare with those of a broad
measure of market performance. Performance reflects contractual
fee waivers in effect. If fee waivers were not in place, performance would be
reduced. After‑tax returns are shown
for Institutional Shares only and will vary from the after‑tax returns for other
share classes. After‑tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after‑tax returns
depend on an investor’s tax situation and may differ from those shown. After‑tax
returns shown are not relevant to investors who hold their Fund shares through
tax‑deferred arrangements, such as 401(k) plans or individual retirement
accounts (“IRAs”). Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available by
calling 866‑260‑9549 (toll free) or
312‑557‑5913.
Annual
Total Returns – Institutional Shares for year ended December 31*
|
| |
Best
quarter: |
|
04/01/2020 – 06/30/2020 – 16.42% |
Worst quarter: |
|
01/01/2020 – 03/31/2020 – (23.26%) |
* |
The
Fund’s fiscal year end is September 30. The Fund’s most recent quarterly
return (since the end of the last fiscal year) through
December 31,
2022 was 12.12%.
|
73
Average
Annual Total Returns for the Periods Ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
|
Since Inception |
|
Institutional
Shares – Before Taxes |
|
|
0.91 |
% |
|
|
10.06 |
% |
|
|
10.94 |
% |
|
|
7.84 |
% |
Institutional
Shares – After Taxes on Distributions |
|
|
(1.75 |
%) |
|
|
7.48 |
% |
|
|
8.53 |
% |
|
|
5.92 |
% |
Institutional
Shares – After Taxes on Distributions and Sale of Fund Shares |
|
|
2.46 |
% |
|
|
7.49 |
% |
|
|
8.37 |
% |
|
|
5.87 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Russell
1000 Value Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(7.54 |
%) |
|
|
6.67 |
% |
|
|
10.29 |
% |
|
|
9.56 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Management
Investment Adviser
The
Fund’s investment adviser is JOHCM (USA) Inc (the “Adviser”).
Subadviser
The
Fund’s subadviser is Thompson, Siegel & Walmsley LLC (“TSW” or the
“Subadviser”).
Portfolio Managers
|
| |
Bryan
F. Durand, CFA
Co‑Portfolio
Manager, Research Analyst
Length
of Service: Since 2019* |
|
Brett
P. Hawkins, CFA
Lead
Portfolio Manager, Chief Investment Officer
Length of Service:
Since 2015* |
* |
Each
Portfolio Manager served as portfolio manager of the Fund’s predecessor,
which reorganized into the Trust on December 6,
2021. |
Buying
and Selling Fund Shares
Minimum Initial Investment
|
|
|
|
|
| |
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
$1,000,000 |
|
No
minimum |
|
No
minimum |
|
$10,000,000 |
There is no minimum for additional investments. If
you hold shares through a financial intermediary, the financial intermediary may
impose its own, different, investment minimums.
To Buy or Sell Shares:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
You
can buy or sell shares of the Fund on any day the New York Stock Exchange
(“NYSE”) is open through your broker or financial intermediary, or by mail or
telephone. You can pay for shares by wire. The Adviser and JOHCM Funds
Distributors, LLC, the Fund’s distributor, reserve the right to waive any
minimum in their sole discretion, and to reject any purchase order for any
reason.
74
Dividends,
Capital Gains and Taxes
The
Fund intends to make distributions that are generally taxable as ordinary income
or capital gains, except when your investment is in an IRA, 401(k), or other
tax‑advantaged investment plan. However, you may be subject to tax when you
withdraw monies from a tax‑advantaged plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase 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 web site for more
information.
75
ADDITIONAL
INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES AND RISKS OF THE FUNDS
Principal
Investments and Strategies of Each Fund
JOHCM
Credit Income Fund
Investment Objective:
The investment objective of the Fund is to preserve capital and
deliver returns through a combination of income and modest capital
appreciation.
Principal Investment
Strategies: The Fund invests, under normal circumstances, at least
80% of its net assets (plus the amount of any borrowings for investment
purposes) in fixed income securities. The fixed income investments give exposure
to a wide range of maturities and can include investment grade corporate debt,
high yield securities (higher risk, lower rated fixed income securities rated
below BBB‑ by S&P or below Baa3 by Moody’s, also known as “junk bonds”),
convertible bonds (including contingent convertible bonds), floating-rate debt,
collateralized debt, municipal debt, non‑U.S. debt (including in emerging
markets), commercial paper, loans and loan participations. The Fund may also
gain exposure to up to 10% of equity securities, including through depositary
receipts, issued by companies of any size. The Fund expects to invest in
preferred stock, which it considers similar to fixed income securities
(including for purposes of the 80% test above). The Fund intends to invest in
non‑U.S. debt (including in emerging markets). The Fund may also seek to obtain
exposure to fixed income investments through investments in affiliated or
unaffiliated investment companies, including exchange-traded funds (“ETFs”) and
closed‑end funds.
The
portfolio managers seek to build a portfolio that reflects their investment
views across the fixed income markets that is consistent with the Fund’s
objective of preserving capital and delivering returns through a combination of
income and modest capital appreciation. The portfolio managers seek to identify
resilient income streams by evaluating credit investments on factors such
as:
Business
Model. A key component of assessing the value of a business is
determining the extent to which it enjoys competitive advantages and is subject
to any key sources of risk. The portfolio managers’ persistence framework serves
as a bottom up risk management tool that seeks to uncover the key factors that
could lead to an impairment of the value of the issuer. The portfolio managers
are more comfortable investing in and lending to businesses that they believe to
be more persistent or durable. Given that credit asset class offers asymmetric
returns (i.e. limited upside against a risk that the issuer defaults on
repayment of principal entirely), avoiding pitfalls that could lead to capital
impairment is critical in generating returns. The Fund’s investments in any one
sector may exceed 25% of its net assets. Assessing a business’s durability
involves a variety of qualitative assessments often made from primary research.
These can include interviews with the issuer’s management team, customers,
suppliers, competitors, and former employees as well as discussions with third
party sources such as broker dealer and independent research analysts who also
conduct research on the issuer and its industry and other investors both within
the Adviser’s ecosystem of portfolio management teams or through the Adviser’s
buy‑side industry networks.
Financial
Analysis. A detailed review of the issuer’s financial position is
also critical, with a focus the cash flow generation ability of the issuer and
certain key drivers, such as the stability of the business’s revenues as well as
the flexibility of its cost structure. The Fund will generally only invest in
businesses with strong free cash flow and the ability to deliver organically
(i.e. to reduce debt outstanding through internally generated cash flows).
Metrics that are more common in equity analysis, such as return on invested
capital and a review of the alignment of management incentives can give the team
greater insight into the value of the business.
Corporate and Legal
Structure. Finally, the corporate and legal structure are
reviewed, as it is imperative to understand whether there are other claims to
which the security under consideration is subordinate. The Fund typically
invests across a wide range of maturities. As market conditions
76
change,
the volatility and attractiveness of sectors, securities, and strategies can
change as well. To optimize the Fund’s risk/return, the portfolio managers may
dynamically adjust the mix of different asset class exposures.
The
Fund retains the flexibility to enter into derivatives transactions and various
other hedging assets that the portfolio managers believe will reduce the overall
volatility of the Fund, protecting capital, in certain market environments. Such
hedging assets may include, but are not limited to: ETFs and commodity-linked
investment vehicles that primarily invest in gold and precious metals;
inflation-linked investments; currency hedging instruments such as currency
forward contracts and currency futures; futures contracts, including
interest-rate futures, which are exchange-traded contracts in which the
specified underlying security is either an interest-bearing fixed income
security or an inter-bank deposit, Treasury futures, and “e‑mini” futures
contracts representing a fraction of the value of a corresponding standard
futures contract; and options on futures contracts. The Fund may also use
hedging and derivative instruments to reduce certain risk exposures present in
the Fund’s holdings. The Fund may also engage in short sales or take short
positions for hedging or other investment purposes.
The
Fund is permitted to invest in contingent securities structured as contingent
convertible securities also known as “CoCos.” A contingent convertible security
is a hybrid debt security either convertible into equity at a predetermined
share price or written down in value based on the specific terms of the
individual security if a pre‑specified trigger event occurs (the “Trigger
Event”), such as a decline in the issuer’s capital below a specified threshold
or increase in the issuer’s risk-weighted assets. Unlike traditional convertible
securities, the conversion of a contingent convertible security from debt to
equity is “contingent” and will occur only in the case of a Trigger Event. The
Fund anticipates that it may invest up to 20% of its assets in CoCos.
When
the portfolio managers believe that asset prices are attractive (for example,
during widespread market selloffs), the portfolio managers may use leverage in
an amount up to 15% of the Fund’s total assets in order to increase market
exposure and pursue additional investments in such assets. The portfolio
managers may consider selling a security if the portfolio managers believe that
company fundamentals are deteriorating or if the portfolio managers identify a
security that they believe offers a better investment opportunity.
Additionally,
as part of the research process, the portfolio managers consider financially
material environmental, social and governance (“ESG”) factors, including
potential impacts on the long-term risk and return profile of a company. Such
factors, alongside other relevant factors, may be taken into account in the
Fund’s securities selection process.
JOHCM Emerging Markets Discovery Fund
(formerly, JOHCM Emerging Markets Small Mid Cap Equity Fund)
Investment Objective:
The investment objective of the JOHCM Emerging Markets Discovery
Fund (the “Fund”) is to seek long-term capital appreciation.
Principal Investment
Strategies: The Fund invests, under normal circumstances, at least
80% of its net assets (plus the amount of any borrowings for investment
purposes) in equity securities issued by companies located in emerging markets,
including frontier markets. Equity securities include common and preferred
stocks, and include rights and warrants to subscribe to common stock or other
equity securities. The Fund may achieve its equity exposure either directly or
indirectly, such as through depositary receipts, exchange-traded funds (“ETFs”)
and participatory notes (commonly known as “P‑notes”). Emerging market countries
are those countries included in the MSCI Emerging Markets Index and MSCI
Frontier Markets Index, countries with low to middle-income economies according
to the International Bank for Reconstruction and Development (more commonly
referred to as the World Bank), and other countries with similar emerging market
characteristics.
The
portfolio managers use a disciplined fundamental bottom up research approach,
namely by focusing on analyzing individual companies rather than by beginning
with a “top down” allocation across
77
particular
countries, regions, markets or sectors. As part of this approach, the portfolio
managers aim to identify emerging market companies that they believe are
inefficiently priced and that typically demonstrate one or more of the following
positive characteristics: (1) niche players without significant competition
and which are operating at high margins; (2) fast growing, flexible and
responsive to changes; (3) able to achieve incremental gains in market
share; and (4) success is strongly influenced by management. As part of the
selection process for its “discovery” strategy, the portfolio managers typically
look for companies that are: (a) in emerging industries with pioneering
business models, or (b) have innovative technologies that have the
potential to disrupt the status quo, or (c) are offering products or
services that are not yet widely available or adopted in the local market, with
the potential for long-term growth. The portfolio managers also seek to identify
growth potential in companies that they believe are recovering (or will soon
begin to recover) from significant market or business setbacks and therefore
have the potential to outpace broader financial markets on a relative
basis.
While
the portfolio managers build the Fund’s portfolio primarily from a bottom-up
growth philosophy and individual stock selection process they also consider
top-down macroeconomic information, particularly in determining sector and
country weightings in the portfolio. The portfolio managers consider the country
and sector allocation of the Fund’s performance benchmark (the MSCI Emerging
Markets Small Cap Index) but may depart from the benchmark’s allocations at any
time. Emerging markets are typically more volatile than developed markets;
frontier markets are generally smaller, less liquid, and less developed than
emerging markets. The portfolio managers believe that consideration of top‑down,
macroeconomic factors will reduce the overall volatility of the Fund in certain
market environments (thereby protecting capital) and reduce overall risk
exposure. In selecting companies for investment, the portfolio managers also
consider the investment risks associated with the liquidity of the company’s
stock, taking into account the depth of the trading market for the company’s
shares, and how reliable the company’s reporting (particularly its financial
reporting) appears to be while also seeking to take advantage of market
inefficiencies as to individual companies and industries.
Under
normal circumstances, the Fund will typically hold securities of 70 to 120
companies and will invest at least 80% of its assets in small and medium
capitalization companies, which the Fund currently considers to be companies
with market capitalizations below U.S. $8 billion. For purposes of its 80%
policy as to small and medium capitalization companies, if the Fund continues to
hold securities of companies whose market capitalization, subsequent to
purchase, grows to exceed U.S. $8 billion, it may continue to treat them as
small or medium capitalization companies. The portfolio managers may consider
selling a security if the portfolio managers believe that company fundamentals
are deteriorating, there is increased geopolitical or economic risk in that
company’s local market, or if the portfolio managers identify a security that
they believe offers a better investment opportunity regardless of market
capitalization.
The
Fund may invest a significant portion of its assets in issuers located in one
country or a small number of countries. These countries may change from time to
time. While the Fund does not pursue active or frequent trading as a principal
strategy, it has in the past and could in the future experience elevated levels
of portfolio turnover when implementing its strategy in certain economic and
market conditions.
The
Fund expects to invest a portion of its assets in securities of developed
markets companies that derive, or are expected to derive, a significant portion
of their revenues from their operations in emerging or frontier markets. The
Fund may also participate in initial public offerings (“IPO”s).
Investments
are predominantly in common stock, however, the Fund may also purchase
depositary receipts (including ADRs, EDRs, and Global Depositary Receipts
(“GDRs”)), convertible and non‑convertible preferred stock, and participatory
notes. P‑notes are instruments that provide exposure to, primarily, equity
securities of issuers listed on a non‑U.S. exchange and are typically used when
a direct investment in the underlying security is either unpermitted, restricted
or uneconomical due to country-specific regulations or other restrictions.
The
Fund also may purchase futures contracts and other derivative contracts,
including index derivatives for equities and currencies. Although the Fund did
not invest significantly in derivatives instruments
78
as
of the most recent fiscal year end, it may do so at any time. The Fund also may
invest in physical currencies and spot and forward currency contracts. The Fund
typically does not seek to hedge its exposure to non‑U.S. dollar
currencies.
JOHCM
Emerging Markets Opportunities Fund
Investment Objective:
The investment objective of the JOHCM Emerging Markets
Opportunities Fund (the “Fund”) is to seek long-term capital appreciation.
Principal Investment
Strategies: The Fund seeks to achieve its investment objective by
investing, under normal circumstances, at least 80% of its net assets (plus the
amount of any borrowings for investment purposes) in equity securities of
companies located in emerging market countries. Emerging market countries are
those countries included in the MSCI Emerging Markets Index and MSCI Frontier
Markets Index, countries with low to middle-income economies according to the
International Bank for Reconstruction and Development (more commonly referred to
as the World Bank) and other countries with similar emerging market
characteristics. The Fund may invest in companies of any size, including small-
and mid‑capitalization companies. The Fund may also invest up to 5% of its
assets in frontier markets, which are generally smaller, less liquid, and less
developed than emerging markets.
The
equity securities in the Fund’s portfolio can include direct and indirect
investments in common and preferred stocks, as well as rights and warrants to
subscribe to equity securities. The Fund obtains indirect exposure to equity
securities through instruments such as depositary receipts and participatory
notes. Depositary receipts, such as American Depositary Receipts (“ADRs”) and
Global Depositary Receipts (“GDRs”) are receipts issued by a bank or trust
company evidencing ownership of underlying securities issued by a foreign
issuer. Depositary receipts are alternatives to directly purchasing the
underlying foreign securities in their national markets and currencies. While
the Fund invests in publicly traded depositary receipts, in some cases the
securities underlying the receipts are unquoted on stock exchanges.
The
Fund utilizes a core investment style with a modest growth tilt (growth at a
reasonable price, or “GARP”) over all capitalization ranges to invest in equity
securities of companies located in emerging markets. The GARP investment
strategy is a blend of growth and value investing, which seeks to find companies
that have strong earnings growth at a good price. The Fund combines top‑down and
bottom‑up research to assess potential investments in the Fund. A top‑down
country view represents an assessment of the investment prospects in a country
(in this case, a particular emerging market country) based on macroeconomic,
geopolitical and other factors affecting the country as a whole. The portfolio
managers seek to invest in companies that possess attractive fundamentals (for
example, a company’s revenues, earnings, or management) and that fit with the
portfolio managers’ top‑down country views within the emerging markets. The
portfolio is managed with reference to its performance benchmark, the MSCI
Emerging Markets Index, as to country and sector allocation but may depart from
the benchmark’s allocations at any time. The Fund will typically own between 40
and 60 companies. The portfolio managers may consider selling a security
(i) to manage overall portfolio risk, (ii) if they perceive an actual
or potential deterioration in the company’s underlying business or (iii) if
they identify a more attractive investment opportunity.
The
Fund may invest a significant portion of its assets in investments located in
one country or a small number of countries. These countries may change from time
to time. The Fund’s performance benchmark index currently includes substantial
exposure to China.
The
Fund may also participate in initial public offerings (IPOs).
JOHCM
Global Income Builder Fund
Investment Objective:
The investment objective of the Fund is to seek a level of current
income that is consistent with the preservation and long-term growth of capital
in inflation-adjusted terms.
79
Principal Investment
Strategies: The Fund seeks to achieve its investment objective by
applying a bottom‑up, long-term global value investing philosophy across a broad
range of asset classes. In a bottom‑up approach, companies and securities are
researched and chosen individually. While the Fund may hold investments in
non‑income producing securities, under normal circumstances, at least 80% of its
net assets (plus the amount of any borrowings for investment purposes) will be
comprised of income producing securities.
The
Fund normally will invest in a range of income-producing equity securities of
U.S. and non‑U.S. companies, including common stocks that offer attractive
dividend yields. The Fund’s equity securities include investments in common and
preferred stocks, as well as rights and warrants to subscribe to common stock or
other equity securities. The Fund may invest in initial public offerings
(“IPOs”) and real estate investment trusts (“REITs”). The Fund obtains exposure
to equity securities either directly or indirectly such as through participatory
notes and depositary receipts.
The
Fund also normally will invest in a range of fixed income instruments from
markets in the United States and multiple countries around the world such as
high-yield instruments (commonly referred to as “junk bonds”), investment grade
instruments, sovereign debt, loans and loan participations. The Fund maintains
flexibility to have significant exposure to high-yield instruments in response
to current market conditions. The Fund may invest in securities of any maturity
or investment rating, as well as unrated securities, and will normally invest in
hybrid securities that embody elements of both equity and fixed income
securities such as preferred shares and convertible bonds.
Pursuant
to a value investing philosophy, the Fund seeks to invest in securities the
portfolio managers believe provide a discount (or “margin of safety”) between a
security’s price and what the portfolio managers believe to be the true value of
the underlying business (which is sometimes referred to as “intrinsic value”).
The portfolio managers examine economic, financial, and other qualitative and
quantitative factors to evaluate a security’s value. In order to estimate the
intrinsic value of a business, the portfolio managers will assess the overall
quality of the business, including the competitive advantages that it enjoys,
such as economies of scale, customer captivity, and access to scarce resources.
This margin of safety approach is common to both equity and debt investments, as
the Fund requires a similar buffer for buying common stock or for “lending” to
an issuer through the purchase of its debt securities. The portfolio managers
will also consider a variety of other factors, such as the strength of the
issuer’s balance sheet and the quality of its management team. In the case of
debt investments, the portfolio managers take into consideration the “seniority”
of the instrument relative to other claims on the issuer’s assets and business.
The outcome of this analysis is then compared to the security’s current value to
determine if it is over- or underpriced. To this end the Fund’s investments and
strategy may at times be viewed as contrarian. The portfolio managers believe
that investing when such a margin of safety is present can help reduce the
likelihood of permanent loss of capital, as opposed to temporary losses due to
shifting investor sentiment or other normal asset price volatility. The Fund may
consider selling a security as it reaches the portfolio managers’ estimate of
the company’s value, if the portfolio managers believe that the company’s
underlying business is deteriorating, or if the portfolio managers identify a
security that they believe offers a better investment opportunity.
Additionally,
as part of the investment process, the portfolio managers consider financially
material environmental, social and governance (“ESG”) factors to evaluate and
monitor the securities in the Fund’s investment universe. The portfolio managers
combine third-party data (sources may include Sustainalytics, ISS and/or MSCI)
and internal ESG assessments in constructing the Fund’s portfolio. The portfolio
managers believe there are long-term benefits in investing in companies with
strong records for managing ESG risks, advancing sustainable development goals
and applying good corporate governance.
The
Fund will seek to invest in companies that the portfolio managers believe have
high quality management teams, strong balance sheets, and defensible businesses
models; however, the valuation of the specific investment under consideration is
the most important criterion. As a result, the Fund may invest in securities of
issuers which do not encompass all or, in some cases, any of the above
additional qualities beyond
80
attractive
valuation, if the portfolio managers believe the security is significantly
undervalued and an exceptional margin of safety exists. In general, the lower
the quality of the issuer’s business, the higher the margin of safety that is
required.
As
a multi-asset portfolio, the Fund invests in the various asset classes described
herein and may shift its investments from one asset class to another. The
portfolio managers’ decision to allocate incremental capital to a security in
one asset class versus another is typically based on a bottom‑up as opposed to a
top‑down assessment of asset class returns or macroeconomic predictions, relying
on both quantitative and qualitative assessments, to determine which
investments, in their opinion, provide the best risk-reward profile and/or
render the portfolio more resilient. The portfolio managers believe that
maintaining this flexible approach is critical to avoiding pockets of overvalued
securities. The portfolio managers also seek to preserve flexibility across
geographic areas and company size. As a result, the Fund may invest in
securities of companies of any market capitalization or domicile. The portfolio
managers anticipate that, under normal circumstances, the Fund will invest in a
portfolio of between 30% and 70% common equity securities, with the balance of
its assets invested in fixed income securities, hedging assets (as defined
below), and cash or cash equivalents. However, the portfolio managers maintain
the ability to adjust the Fund’s allocations as needed to adapt the portfolio to
various income, market, and valuation environments. In pursuing the Fund’s
investment objective, under normal circumstances, at least 40% of the Fund’s
investments will be in issuers located outside of the United States. If market
conditions are deemed unfavorable the Fund reserves the right to invest as
little as 30% of its assets in non‑U.S. issuers.
The
Fund anticipates that it may enter into derivatives transactions and various
other hedging assets that the portfolio managers believe will reduce the overall
volatility of the Fund, protecting capital, in certain market environments. Such
hedging assets may include, but are not limited to: exchange-traded funds and
commodity-linked investment vehicles that primarily invest in gold and precious
metals; inflation-linked investments; currency hedging instruments such as
currency forward contracts and currency futures; futures contracts, including
interest-rate futures, which are exchange-traded contracts in which the
specified underlying security is either an interest-bearing fixed income
security or an inter-bank deposit, Treasury futures, and “e‑mini” futures
contracts representing a fraction of the value of a corresponding standard
futures contract; and options on futures contracts. The Fund may also use
hedging and derivative instruments to reduce certain risk exposures present in
the Fund’s holdings. The Fund may also engage in short sales or take short
positions for hedging or other investment purposes.
As
part of its investment strategy, the Fund may also invest in exchange-traded and
over‑the‑counter derivative instruments, including interest rate, credit, index,
and currency futures; currency, interest rate, total rate of return, and credit
default swaps; currency, bond, and swap options; deliverable and non‑deliverable
currency forward contracts; bonds for forward settlement; options, including
buying and selling puts and calls; and equity-linked notes.
The
Fund may invest in contingent securities structured as contingent convertible
securities also known as “CoCos.” A contingent convertible security is a hybrid
debt security either convertible into equity at a predetermined share price or
written down in value based on the specific terms of the individual security if
a pre‑specified trigger event occurs (the “Trigger Event”), such as a decline in
the issuer’s capital below a specified threshold or increase in the issuer’s
risk-weighted assets. Unlike traditional convertible securities, the conversion
of a contingent convertible security from debt to equity is “contingent” and
will occur only in the case of a Trigger Event. The Fund anticipates that it may
invest up to 20% of its assets in CoCos.
JOHCM
Global Select Fund
Investment Objective:
The investment objective of the JOHCM Global Select Fund (the
“Fund”) is to seek long-term capital appreciation.
81
Principal Investment
Strategies: The Fund seeks to achieve its investment
objective by investing primarily in common stocks and other equity securities of
U.S. and non‑U.S. companies, including in preferred stock, rights, and warrants
The Fund normally invests at least 40% of its assets in companies located in
countries other than the U.S., provided that the Fund reserves the flexibility
to invest as little as 30% of its assets in companies located outside the U.S.
when market conditions are unfavorable. Notwithstanding the previous sentence,
the Fund may invest a percentage lower than 40% in such non‑U.S. securities if
the weighting of non‑U.S. securities in the Fund’s performance benchmark
(currently, the MSCI ACWI Index) drops below 45%, in which case the minimum
level investments in non‑U.S. securities must remain within 5% of the
benchmark’s weighting (e.g. if the weighting of non‑U.S. securities in the
Fund’s performance benchmark is 38%, the minimum level for investing in non‑U.S.
securities for the Fund would be 33%). Typically, the Fund invests in a number
of different countries, including emerging markets. The Fund may invest in
companies of any size, including small- and mid capitalization companies, in
order to achieve its objective.
The
portfolio managers seek to identify and make investments based on a
multi-dimensional investment process, considering a number of factors, including
growth, valuation, size, momentum, and beta. Beta measures the volatility of a
stock relative to the overall market. The Fund utilizes a core investment style
with a growth tilt (growth at a reasonable price, or “GARP”) over all
capitalization ranges, which means that the Fund generally invests in larger,
more established companies, but would expect to invest a somewhat greater
portion of its assets in smaller, growth companies than would a typical large
cap mutual fund. The GARP investment strategy is a blend of growth and value
investing and seeks to find companies that have strong earnings growth at a good
price. The Fund seeks those stocks, sectors, and countries with positive
earnings surprises, sustainably high or increasing return on equity, and
attractive valuations. The investment process utilizes a combination of bottom
up investing and top down asset allocation that typically results in a portfolio
of 30 to 60 holdings. Bottom up investing utilizes techniques such as
fundamental analysis to assess growth and value potential of individual issuers.
In conducting fundamental analysis of companies that are being considered for
purchase by the Fund, the portfolio managers will evaluate, among other things,
the financial condition and management of a company, its industry, stability of
the country in which the company is located, and the interrelationship of these
variables over time.. Additionally, as a standard part of the multi-dimensional
investment process, the portfolio managers consider financially material
environmental, social and governance (“ESG”) factors, including potential
impacts on the long-term risk and return profile of a company. Such factors,
alongside other relevant factors, may be taken into account in the Fund’s
securities selection process. Top down asset allocation utilizes evaluations of,
among other things, economic factors including country risk, sector trends
within individual countries and regions, and currency impact.
Investments
are predominantly in common stock, however the Fund also expects to gain some of
its equity exposure indirectly, such as through purchasing depositary receipts
(including American Depositary Receipts (“ADRs”) and Global Depositary Receipts
(“GDRs”)), exchange-traded funds (“ETFs”) and/or participatory notes.
Participatory notes (commonly known as “P‑notes”) are instruments that provide
exposure to, primarily, equity securities of issuers listed on a non‑U.S.
exchange and are typically used when a direct investment in the underlying
security is either unpermitted, restricted or uneconomical due to
country-specific regulations or other restrictions.
The
Fund may consider selling a security if the portfolio managers believe that
there is an actual or potential deterioration in the company’s underlying
business, its sector, or its country or if the portfolio managers identify a
security that they believe offers a better investment opportunity.
JOHCM
International Opportunities Fund
Investment Objective:
The investment objective of the JOHCM International Opportunities
Fund (the “Fund”) is to achieve long-term total return by investing in a focused
portfolio of international equity securities.
Principal Investment
Strategies: The Fund invests, under normal market conditions,
primarily in equity securities of companies located outside the United States,
including those located in emerging market
82
countries.
The Fund may invest in non‑U.S. companies of any size, including small- and
mid‑capitalization companies, to achieve its objective. Equity securities
include common and preferred stocks and include rights and warrants to subscribe
to common stock or other equity securities. The Fund may achieve its equity
exposure either directly or indirectly, such as through participatory notes,
though it does not use such indirect instruments as a means of achieving
leverage. The Fund may invest a significant portion of its assets in investments
located in one country or a small number of countries. These countries may
change from time to time.
The
Fund operates as a “diversified” investment company and will typically own
between 25‑50 holdings. The portfolio managers aim to achieve above-average
risk-adjusted equity returns, over the medium term of three to five years. The
portfolio managers believe this is best achieved by investing in a
benchmark-agnostic portfolio of attractively valued high quality companies. The
portfolio managers seek to assess intrinsic value of such companies based on
long term competitive advantages and cash flow expectations. They prioritize
companies that they believe can generate cash profits reliably over many years
and have opportunities to pay dividends and/or reinvest some of those profits at
high rates of return.
The
portfolio managers believe that a key risk to any investor is permanent
impairment of capital from owning overvalued assets. Therefore, the Fund
maintains a valuation discipline intended to ensure that assets are only bought
when they are attractively valued, in absolute terms, with reference to their
estimated intrinsic value. The portfolio managers employ a scenario-based
approach to assessing intrinsic value, evaluating best- and worst-case outcomes
for potential and current investments and their related cash flows. The
portfolio managers may also consider selling a security when they believe it is
overvalued, if it ceases to satisfy any other selection criteria, if there is a
change in the company’s risk/return profile, or if they identify a more
attractive investment opportunity Overvaluation may result from either strong
share price performance or a deterioration in the expected intrinsic value of
the underlying business. Consistent with the Fund’s absolute valuation
discipline, the portfolio managers may determine to delay reinvestment of sale
proceeds or other available cash immediately, instead holding positions in cash
and cash equivalents, including money market funds, potentially in an amount up
to 20% of the net assets of the Fund, while examining and awaiting available
investment opportunities.
Additionally,
as part of the research and security selection processes, the portfolio managers
consider financially material environmental, social and governance (“ESG”)
factors, including potential impacts on the long-term risk and return profile of
a company. In doing so, the portfolio managers incorporate proprietary ESG
analysis into their investment decisions and have access to third-party
analytics sources, which may include Sustainalytics and MSCI.
JOHCM
International Select Fund
Investment Objective:
The investment objective of the JOHCM International Select Fund
(the “Fund”) is to seek long-term capital appreciation.
Principal Investment
Strategies: The Fund seeks to achieve its investment
objective by investing primarily in common stocks and other equity securities of
companies located outside the United States. The Fund’s equity securities
include common and preferred stock, rights, and warrants. Typically, the Fund
invests in a number of different countries, including emerging markets. The Fund
may invest in companies of any size, including small- and mid capitalization
companies, in order to achieve its objective.
The
portfolio managers seek to identify and make investments based on a
multi-dimensional investment process, considering a number of factors, including
growth, valuation, size, momentum, and beta. Beta measures the volatility of a
stock relative to the overall market. The Fund utilizes a core investment style
with a growth tilt (growth at a reasonable price, or “GARP”) over all
capitalization ranges, which means that the Fund generally invests in larger,
more established companies, but would expect to invest a somewhat greater
portion of its assets in smaller, growth companies than would a typical large
cap mutual fund. The GARP investment strategy is a blend of growth and value
investing and seeks to find companies that have strong
83
earnings
growth at a good price. The Fund seeks those stocks, sectors, and countries with
positive earnings surprises, sustainably high or increasing return on equity,
and attractive valuations. The investment process utilizes a combination of
bottom up investing and top down asset allocation that typically results in a
portfolio of 30 to 60 holdings. Bottom up investing utilizes techniques such as
fundamental analysis to assess growth and value potential of individual issuers.
In conducting fundamental analysis of companies that are being considered for
purchase by the Fund, the portfolio managers will evaluate, among other things,
the financial condition and management of a company, its industry, stability of
the country in which the company is located, and the interrelationship of these
variables over time. Additionally, as a standard part of the multi-dimensional
investment process, the portfolio managers consider financially material
environmental, social and governance (“ESG”) factors, including potential
impacts on the long-term risk and return profile of a company. Such factors,
alongside other relevant factors, may be taken into account in the Fund’s
securities selection process. Top down asset allocation utilizes evaluations of,
among other things, economic factors including country risk, sector trends
within individual countries and regions, and currency impact.
Investments
are predominantly in common stock, however the Fund also expects to gain some of
its equity exposure indirectly, such as through purchasing depositary receipts
(including American Depositary Receipts (“ADRs”) and Global Depositary Receipts
(“GDRs”)), exchange-traded funds (“ETFs”) and/or participatory notes.
Participatory notes (commonly known as “P‑notes”) are instruments that provide
exposure to, primarily, equity securities of issuers listed on a non‑U.S.
exchange and are typically used when a direct investment in the underlying
security is either unpermitted, restricted or uneconomical due to
country-specific regulations or other restrictions.
The
Fund may consider selling a security if the portfolio managers believe that
there is an actual or potential deterioration in the company’s underlying
business, its sector, or its country or if the portfolio managers identify a
security that they believe offers a better investment opportunity.
Regnan
Global Equity Impact Solutions
Investment Objective:
The investment objective of the Fund is to seek to achieve
long-term capital appreciation by investing in companies that contribute
solutions to addressing the world’s major social and environmental
challenges.
Principal Investment
Strategies: The Fund seeks to achieve its investment objective by
investing primarily in a high-conviction global equity portfolio of companies
the portfolio managers believe have the potential to contribute solutions to the
world’s major social and environmental challenges. The Fund invests, under
normal circumstances, at least 80% of its net assets (plus the amount of any
borrowings for investment purposes) in equity securities of companies that the
portfolio managers believe satisfy their criteria for positive social or
environmental impact. The Adviser measures this impact by applying the Regnan
Taxonomy, as described below, in conjunction with a proprietary impact
assessment, by the portfolio managers. This impact assessment is based upon
qualitative and quantitative assessment, including the measurement of the
activities that currently constitute, or that the portfolio managers expect over
the long term will constitute, a significant portion (i.e., at least 30%) of a
company’s business (using metrics that may include, without limitation, any of
the following: revenues, earnings, capital expenditures, research and
development investment, or book value). The Fund gains exposure to equity
securities either directly or indirectly, through equity-linked instruments such
as participatory notes or index exchange-traded funds (“ETFs”), and may invest
in preferred stocks.
Under
normal market conditions, the Fund will invest at least 40% of its assets in
companies located in countries other than the U.S., including developing,
frontier market or emerging market countries. Notwithstanding, the Fund may
invest a percentage lower than 40% in such non‑U.S. securities if the weighting
of non‑U.S. securities in the Fund’s performance benchmark (currently the MSCI
ACWI Investable Market Index) drops below 45%, in which case the Fund’s minimum
level for investments in non‑U.S. securities must remain within 5% of the
benchmark’s weighting (e.g. if the weighting of non‑U.S. securities in the
Fund’s
84
performance
benchmark is 38%, the minimum level for investing in non‑U.S. securities for the
Fund would be 33%). Under normal circumstances, the Fund expects to invest in a
range of countries, typically at least 10 different countries. While the Fund
may invest in companies of any size, the portfolio managers investment approach
will typically result in a bias toward investment in small and
mid‑capitalization companies, including initial public offerings (“IPOs”). The
Fund’s high-conviction investment approach may result in the Fund having
significant exposure to one or a handful of economic sectors, however the Fund
will not concentrate its investments in a particular industry.
The
Fund’s investment strategy is built on the belief that companies that undertake
to solve the challenges increasingly faced by the environment and society are
well-positioned for growth in the future, particularly where the need for a
solution to a particular challenge remains largely unmet. The portfolio managers
believe that these underserved environmental and societal needs will result in
demand for a product or service that is scarcely available, so companies that
are able to fulfill these needs should therefore be rewarded with revenue growth
over time, as the size of the market into which they sell their core products or
services grows. The portfolio managers believe that this is particularly true if
a company’s solution uses a degree of technological ingenuity or a
differentiated approach. The portfolio managers seek to invest in companies that
sell products or services that are at the early stages of their adoption, as the
economic value of such products and services tends, in the portfolio managers’
view, to be underestimated by the market. Examples of such early-stage products
and services might include innovative technologies for addressing environmental
dangers, or online resources for supporting social change initiatives. The stage
at which the portfolio managers choose to invest may vary by industry or by
product, although in each case, the portfolio managers generally intend to
invest before a company’s full value is recognized by the broader market.
For
purposes of establishing the Fund’s investment universe, the portfolio managers
make use of a proprietary research framework, referred to as the Regnan
Taxonomy, in an effort to gain exposure to truly mission-driven companies that
are able to drive additional positive impacts through the sale of an innovative
solution to a particular environmental or social problem. In identifying
investment opportunities, the Regnan Taxonomy seeks to: (i) understand and
identify the underlying environmental and social problems which need to be
addressed; (ii) identify the products and services that contribute to
finding solutions to these problems; and (iii) identify suitable companies
that are selling these products and services. In identifying the underlying
environmental and social problems to be addressed, the Regnan Taxonomy draws on
the targets that underlie the 17 United Nations Sustainable Development Goals
(the “UN SDGs”). The 17 SDGs, which were primarily intended for the use of
policy-makers, are broad goals underpinned by 169 actionable targets. Some of
these targets, or actionable problems, can be matched to a corporate product or
service that helps to achieve this sustainability target. The Adviser undertakes
research to identify companies producing these products and services, and which
are investable via listed equity on recognized exchanges. The UN SDGs may change
over time, and the Regnan Taxonomy may also incorporate other goals linked to
other sustainability frameworks as determined by the Adviser. The Regnan
Taxonomy uses proprietary research to determine which companies derive a
significant portion of their revenue from producing the products and services
that contribute to finding solutions to these problems.
Once
the investment universe is established, the portfolio managers undertake a
qualitative analysis to understand the size, in revenue terms, of the total
addressable market for these products and services and where in the value chain
companies may have a chance to create lasting value. As part of this analysis,
the portfolio managers conduct research on the products and services, and the
technologies that underlie them to determine which may have a forecastable and
substantial potential for economic profit growth over a five to ten year time
horizon. The portfolio managers then perform impact assessments involving
fundamental analyses of companies within the investment universe to evaluate
their potential to drive a positive impact in the future. The Adviser, per the
Regnan Taxonomy, defines a positive impact as an impact that contributes to one
or more of the UN SDGs or other goals linked to sustainability frameworks that
the Adviser deems to be pertinent. The magnitude of a company’s impact is
assessed using the portfolio managers’ integrated analysis, which incorporates
consideration, where available, of pre‑selected key performance indicators that
the portfolio managers believe to
85
be
indicative of the company’s progress toward achieving the applicable
sustainability framework goals. These key performance indicators may not always
be available for a specific company or a specific sustainability goal and are
expected to change over time. The portfolio managers’ analysis of relevant key
performance indicators accounts for both quantitative and qualitative
information and is typically based to a significant degree on a company’s own
reporting but may also utilize a range of other data sources, including academic
research. These impact assessments typically include analysis of the following
attributes:
|
1. |
Nature
– an assessment of whether the product or service under review is directly
responsible for driving a positive impact. |
|
2. |
Intentionality
– an assessment as to how central the particular product or service is to
the company’s mission to drive a positive
impact. |
|
3. |
Additionality
– an assessment of the additional positive impact that is created by the
company’s product or service, and involves answering the question of
whether this positive impact would indeed have occurred, had the company’s
particular offering not existed. |
|
4. |
Balance
– an assessment of the material and potential negative impacts, whether
generated by the product or service itself, the company’s operations or by
a supplier or customer of the company, and how these negative
externalities balance out or offset the positive impact of the product or
service being sold by the company. |
|
5. |
Directionality
– an assessment of the trajectory of the company’s net
impact. |
Building
on its impact assessment, the portfolio managers then undertakes a comprehensive
value analysis and a risk assessment. The value analysis looks at the total
economic value that each holding is expected to generate and whether the value
is distributed equitably to all stakeholders associated with the particular
company. A company’s total value production is assessed by a number of factors,
including reference to a company’s financial reporting as well as quantitative
reporting by third party data providers. In assessing the equitable distribution
of value, the portfolio managers consider factors such as how a company has
historically allocated the cash it has generated, including choices about how
stakeholders are compensated, how staff are treated, the composition of the
company’s board, the company’s history of tax compliance or avoidance, the
company’s workplace safety record and the company’s investment in human capital,
among other factors generally intended to assist the portfolio managers in
forming a qualitative understanding of the company’s overall culture. By
focusing on the experience of a company’s ‘stakeholders’, the portfolio managers
look beyond the immediate economic effect of the company’s activities on its
current financial statements and shareholder equity. The portfolio managers
believe, however, that an equitable distribution of the value a firm generates
among all stakeholders is critical to long-term, sustainable growth and the
creation of economic value for shareholders over time.
The
risk assessment seeks to identify the key risks that could potentially derail
the company, what kinds and levels of risks are acceptable, how the risks can be
monitored, and whether the company could be encouraged to address the risks
through the portfolio managers engagement with the company. The portfolio
managers intend to conduct company engagement directly , on an ongoing basis.
The Fund will engage with a portfolio companies in an effort to help them reduce
negative operational impacts, while also working with them to increase positive
impact. The portfolio managers’ goal, through engagement with the Fund’s
portfolio companies, is to align impact with long-term capital growth.
The
intended outcome of the portfolio managers’ investment process is a portfolio
that typically consists of between 25 and 50 companies. The portfolio managers
select companies without regard to the Fund’s performance benchmark and expects
to depart significantly from the holdings and weightings in that benchmark. The
portfolio managers add issuers to the Fund’s portfolio typically with the
intention of holding the securities for longer periods (typically at least 5
years), which is expected to result in a relatively low portfolio turnover rate
that aligns with the Fund’s long-term investment outlook.
86
The
portfolio managers will consider selling an investment under one or more of the
following conditions: (1) a change or development invalidates the
investment case or implies the company would no longer pass the impact
assessment, (2) the portfolio managers identifies a company that it
believes offers a better impact solution or that it believes has a valuation
that offers better risk- reward, (3) the portfolio managers’ trust in the
company is damaged and/or the company is no longer willing to engage, or
(4) the company is no longer undervalued, in the portfolio managers’
view.
The
Fund may also enter into derivatives transactions and various other hedging
assets that the portfolio managers believe will reduce the overall volatility of
the Fund in certain market environments (thereby protecting capital) and reduce
risk exposures. Such hedging assets may include, but are not limited to:
exchange-traded funds and commodity-linked investment vehicles that primarily
invest in gold and precious metals; inflation-linked investments; currency
hedging instruments such as currency forward contracts and currency futures;
futures contracts, including interest-rate futures, which are exchange- traded
contracts in which the specified underlying security is either an
interest-bearing fixed income security or an inter- bank deposit, Treasury
futures, and “e‑mini” futures contracts representing a fraction of the value of
a corresponding standard futures contract; and options on futures contracts.
Although the Fund did not invest significantly in derivatives instruments as of
the most recent fiscal year end, it may do so at any time.
TSW
Emerging Markets Fund
Investment Objective:
The investment objective of the Fund is to maximize long-term
capital appreciation.
Principal Investment
Strategies: The Fund invests, under normal circumstances, at least
80% of its net assets (plus the amount of any borrowings for investment
purposes) in equity securities of companies that are located in emerging market
countries, including frontier markets. The Fund’s investments in equity
securities can include common and preferred stocks, as well as rights and
warrants to subscribe to common stock or other equity securities. The Fund
obtains its exposure to equity securities either directly or indirectly,
including through Depositary Receipts or participatory notes. Emerging market
countries are those countries included in the MSCI Emerging Markets Index and
MSCI Frontier Markets Index and other countries with similar emerging or
frontier market characteristics, (for example, relatively low gross national
product per capita compared to the world’s major economies).
The
Fund utilizes a bottom up, business-focused approach based on study of
individual companies and their competitive dynamics of the industries in which
they participate. The portfolio manager strives to identify companies whose
shares are underpriced relative to their intrinsic value. The portfolio is
managed with reference to the MSCI Emerging Markets Index as to country
allocation, but the Fund is not benchmark constrained. The portfolio manager
intends, under normal circumstances, to have approximately 40‑80 equity
securities in the Fund’s portfolio.
Pursuant
to a value investing philosophy, the Fund seeks to invest in securities that the
portfolio manager believes provide a discount or “margin of safety” between a
security’s price and what the portfolio manager believes to be the true value of
the underlying business (which is sometimes referred to as “intrinsic value”).
In order to first narrow the Fund’s investment universe, the portfolio manager
uses quantitative tools linked to a variety of relative value assessments
(including cash flow, earnings and share price). Next, the portfolio manager
combines fundamental research and qualitative analysis to make individual
security selections. The portfolio manager seeks to invest in the best
risk-reward candidates within the investment universe, defined as companies that
he believes have both attractive fundamentals (for example, a company’s
revenues, earnings, or management) and are undervalued. The portfolio manager
also analyzes country-specific factors such as geopolitical risk and its
potential impact on expected returns.
The
Fund may consider selling a security if the portfolio manager believes that
(a) it has reached or exceeded its intrinsic value, (b) if there is an
actual or potential deterioration in the company’s underlying
business
87
or
in the risk/reward profile of investing in the company, or (c) if there is
a material deterioration in the financial conditions affecting the country or
countries to which the company s exposed. The Fund may also consider selling if
the portfolio manager identifies a security that he believes offers a better
investment opportunity.
The
Fund may invest in unaffiliated investment companies, including exchange-traded
funds, and may also invest a portion of its assets in real estate investment
trusts (“REITs ”). The Fund typically does not engage in active hedging of
currency but retains flexibility to do so depending on market
performance.
The
Fund may invest a significant portion of its assets in investments located in
one country or a small number of countries. The Fund’s benchmark index currently
includes substantial exposure to China. These countries may change from time to
time.
TSW
High Yield Bond Fund
Investment Objective:
The primary investment objective of the Fund is to seek high
current income with a secondary focus on capital appreciation.
Principal Investment
Strategies: The Fund invests, under normal circumstances, at least
80% of its net assets (plus the amount of any borrowings for investment
purposes) in high yield fixed income securities, also known as “junk bonds”
(higher risk, lower rated fixed income securities rated BB or below by at least
one nationally recognized statistical rating organization or determined to be of
a similar quality by TSW). Under normal circumstances, the Fund will not invest
more than 20% of its net assets in debt instruments that, at the time of
purchase, are rated CCC or below by at least one nationally recognized
statistical rating organization or determined to be of a similar quality by
TSW.
The
Fund’s fixed income securities include primarily corporate debt. The Fund, from
time to time, will make opportunistic investments in other fixed income
securities such as convertible bonds, preferred securities, loans (senior
floating rate loans as well as other secured and unsecured loans) and loan
participations. The Fund retains flexibility to seek temporary, indirect
exposure (e.g., through pooled investment vehicles) to fixed income securities,
such as when managing inflows into the Fund. The Fund expects to invest
primarily in securities denominated in U.S. dollars and may invest in companies
of any size, including small- and mid‑capitalization companies. The Fund’s
portfolio is expected to have a weighted average duration of between three and
seven years under normal conditions.
The
portfolio manager follows a disciplined, bottom‑up research process that focuses
on analyzing individual issuers. This process aims to identify securities
showing stable or improving credit metrics that offer strong relative value in
the context of the high yield market. The portfolio manager evaluates
quantitative as well as qualitative factors in his fundamental analysis.
Quantitative factors may include asset/interest coverage, leverage, financial
flexibility, and cash-flow. Qualitative factors may include industry
attractiveness, competitive positioning, and management’s transparency and
philosophy toward bondholders. While the investment process does not impose a
top‑down allocation to countries or sectors, the portfolio manager attempts to
reduce risk through diversification and credit analysis as well as by
considering the sector allocations of the Fund’s benchmark.
The
portfolio manager may consider selling a security to (i) manage overall
portfolio risk, (ii) achieve an attractive total return, (iii) respond
to a negative change in a company’s risk/return profile or (iv) take
advantage of more favorable risk-adjusted opportunities.
The
Fund may invest in securities that are issued through private offerings without
registration with the Securities and Exchange Commission under the Securities
Act. Accordingly, the Fund expects to invest a significant portion of its assets
in securities that are only offered and sold to “qualified institutional
buyers”, pursuant to Rule 144A under the Securities Act, as such securities are
prevalent in the high yield bond market.
88
TSW
Large Cap Value Fund
Investment Objective:
The Fund seeks maximum long-term total return, consistent with
reasonable risk to principal.
Principal Investment
Strategies: The Fund invests, under normal circumstances, at least
80% of its net assets (plus the amount of any borrowings for investment
purposes) in equity securities of companies with large market capitalizations.
The Fund considers a company’s market capitalization to be large if it equals or
exceeds that of the smallest company in the Russell 1000 Index (approximately
$306 million as of December 31, 2022). The Fund will invest primarily
in a diversified portfolio of common stocks. Although the Fund will primarily
draw its holdings from larger, more seasoned or established companies, it may
also invest in companies of varying size as measured by assets, sales or market
capitalization. The Fund may invest up to 20% of its total assets in American
Depositary Receipts (“ADRs”), which are certificates evidencing ownership of
shares of a non‑U.S. issuer that are issued by depositary banks and traded on
U.S. exchanges.
The
Fund utilizes a bottom‑up, business-focused approach based on study of
individual companies and the competitive dynamics of their respective
industries. Pursuant to a value investing philosophy, the Fund seeks to invest
in securities the portfolio managers believe provide a discount (or “margin of
safety”) between a security’s price and what the portfolio managers believe to
be the true value of the underlying business (which is sometimes referred to as
“intrinsic value”). The portfolio managers intend, under normal circumstances,
to have approximately 30‑70 equity securities in the Fund’s portfolio.
In
seeking stocks whose share are underpriced relative to their intrinsic value,
the portfolio managers first narrow the investment universe using quantitative
tools linked to a variety of relative value assessments (including cash flow,
earnings and share price). The portfolio managers then combine fundamental
research and qualitative analysis to make individual security selections. The
portfolio managers seek to invest in the best risk-reward candidates within the
investment universe, companies that they believe remain undervalued despite
having attractive fundamentals (based on one or more metrics, such as a
company’s revenues, earnings, or management). The portfolio managers also assess
a company’s future cash flows, catalysts that may reduce the gap between share
price and intrinsic value within the next several years, and other potential
impacts on expected returns.
The
portfolio managers may consider selling a security if (i) the company’s
earnings are significantly below market expectations or there is a significant
downward revision to the company’s estimated earnings, (ii) the portfolio
managers believe that the company’s catalyst(s) to close its price to value gap
are achieved or are no longer valid, (iii) there is a change in the
company’s risk/return profile, or (iv) the portfolio managers identify a
more attractive investment opportunity. Consistent with the Fund’s rigorous
investment selection process, the portfolio managers may determine to delay
reinvestment of sale proceeds or other available cash, instead holding positions
in cash and cash equivalents, including money market funds, potentially to a
material degree relative to the net assets of the Fund, while examining and
awaiting available investment opportunities.
The
Fund may invest in real estate investment trusts (“REITs”). Although the Fund
did not invest significantly in derivatives instruments as of the most recent
fiscal year end, it may do so at any time.
More
Information about Investment Strategies Related to the Funds
In
addition to the investments and strategies described in this prospectus, each
Fund also may invest to a lesser extent in other securities, use other
strategies, and engage in other investment practices that are not part of its
principal investment strategy. These investments and strategies, as well as
those described in this prospectus, are described in detail in the Funds’
Statement of Additional Information (“SAI”) (for information on how to obtain a
copy of the SAI see the back cover of this prospectus). Of course, there is no
guarantee that the Funds will achieve their investment goals.
89
The
investments and strategies described in this prospectus are those that the Funds
use under normal conditions. During unusual economic or market conditions, or in
the event of sizeable cash flows into or out of a Fund, each Fund may invest up
to 100% of its assets in money market instruments and other cash equivalents
that would not ordinarily be consistent with its investment objective or its
other investment policies. If a Fund invests in this manner, it may not achieve
its investment objective.
In
addition to its principal investment strategies, a Fund may use the investment
strategies described below. A Fund may also employ investment practices that
this prospectus does not describe, such as participating in repurchase
agreements, when-issued and forward commitment transactions, lending of
securities, borrowing and other techniques. For more information concerning
these and the Funds’ other investment practices and their risks, you should read
the SAI.
Temporary Defensive
Strategies. The Funds seek to remain fully invested in accordance
with their respective investment objectives. However, in an attempt to respond
to adverse market, economic, political, or other conditions, a Fund may take a
temporary defensive position that is inconsistent with its principal investment
strategies. These defensive positions may include investments in cash,
commercial paper, money market instruments, repurchase agreements, and U.S.
Government securities. Taking a temporary defensive position could prevent a
Fund from achieving its investment objective.
Name
Policy. Each Fund, except JOHCM Global Select Fund, JOHCM
International Select Fund and the JOHCM International Opportunities Fund, has a
policy to invest, under normal circumstances, at least 80% of the value of its
“assets” in certain types of investments suggested by its name (the “80%
Policy”). Each Fund’s 80% Policy is set forth in the SAI. Additional detail
regarding the implementation of the policy is included in the “Fund Summary”
section of this prospectus. A Fund must comply with its 80% Policy at the time
the Fund invests its assets. Accordingly, when a Fund no longer meets its 80%
Policy requirement as a result of circumstances beyond its control, such as
changes in the value of portfolio holdings, it would not have to sell its
holdings, but any new investments it makes would need to be consistent with its
80% Policy. Each Fund’s 80% investment policy is non‑fundamental and can be
changed by the Fund’s Board of Trustees without shareholder approval. A Fund
will provide shareholders with at least 60 days’ prior notice of any changes to
the Fund’s 80% policy.
Location of
Issuers. A number of the Funds’ policies are determined by
reference to whether an issuer is “located in” a particular country or group of
countries or whether the issuer is located outside the U.S. more generally.
Being “located in” a particular country reflects a judgment that an issuer is
economically tied to that country, and in determining where an issuer is located
for these purposes the Adviser will consider a number of factors, including but
not limited to:
|
• |
|
the
markets in which the issuer’s securities are principally
traded; |
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• |
|
where
the issuer’s headquarters, principal offices or operations are
located; |
|
• |
|
where
the issuer is organized; |
|
• |
|
the
percentage of the issuer’s revenues or profits derived from goods produced
or sold, investments made, or services performed in the relevant
country; |
|
• |
|
the
Adviser’s own internal analysis; and |
|
• |
|
information
provided by third party data analytics service
providers. |
No
single factor will necessarily be determinative nor must all factors be present
for the Adviser to determine where an issuer is located. The Adviser may weigh
these factors differently with respect to different geographic policies,
different countries or different series of the Trust. The categorization for
compliance testing purposes may differ from how different portfolio managers,
investment professionals, or third parties assign the location of individual
issuers.
90
Line of Credit and
Borrowings. The Trust, on behalf of certain of the Funds, has
entered into a $100 million revolving credit facility agreement (the
“Credit Agreement”) with Northern Trust for liquidity or for other temporary or
emergency purposes.
The
Credit Agreement permits the Funds to borrow up to an aggregate amount of
$100 million, $50 million of which is committed and $50 million
of which is uncommitted at any time outstanding, subject to asset coverage and
other limitations as specified in the Credit Agreement. Borrowing results in
interest expense and other fees and expenses that may impact the Funds’
expenses, including any net expense ratios. The costs of borrowing may reduce
the total returns for a Fund. The Credit Agreement also imposes an ongoing
commitment fee on undrawn committed amounts under the credit facility, which is
allocated to between the Funds, and, within each Fund, to each share class, on a
pro rata basis, based on such Fund’s (or such share classes, as appropriate)
average daily net asset value.
Emerging
Markets. A number of Funds invest in companies located in emerging
markets as part of their principal investment strategies. Unless otherwise
stated in a Fund’s principal investment strategy, the Funds define emerging
markets countries as those countries included in the MSCI Emerging Markets Index
and MSCI Frontier Markets Index, countries with low to middle-income economies
according to the International Bank for Reconstruction and Development (more
commonly referred to as the World Bank) and other countries with similar
emerging market characteristics.
Seed Capital Investments into the
Funds. From time to time,
the Adviser and/or its affiliates may invest “seed capital” in a Fund. These
investments are generally intended to enable the Fund or a share class of the
Fund to commence investment operations and/or achieve sufficient scale to
implement the Fund’s principal investment strategy. The Adviser and/or its
affiliates are under no obligation to maintain any particular level of seed
capital investments in a Fund, and they can redeem their investments at any time
and without prior notice. As with redemptions by other large shareholders,
redemptions of seed capital could have a significant negative impact on the
Fund, including on the liquidity of the Fund’s investment portfolio and the net
asset value (“NAV”) of the Fund shares. The form of a seed investor’s
contribution and any redemption activity by a seed investor can affect,
including adversely, the tax efficiency of the Fund.
When
the Adviser or an affiliate provides “seed capital” or other capital for a Fund,
it may do so with the intention of redeeming all or part of its interest in the
Fund at a future point in time or when it deems that sufficient additional
capital has been invested in that Fund. The timing of a redemption of seed
capital could benefit the seed investor and create a conflict for the Adviser if
the seed investor’s interests diverge from those of the Fund. For example, the
seed investor may choose to redeem its shares at a time when the Fund’s
portfolio is more liquid than at times when other investors may wish to redeem
all or part of their interests. In addition, a consequence of any redemption of
a significant amount, including redemption activity by a seed investor, is that
investors remaining in the Fund will bear a proportionately higher share of Fund
expenses following the redemption.
The
Adviser and/or its affiliates may vote proxies (and have voted proxies in the
past) for the shares they have received in exchange for seed capital. If seed
capital investments account for a significant portion of a Fund’s outstanding
shares, the Adviser and/or its affiliates may have the ability to determine the
outcome of any matter affecting and voted on by shareholders of the
Fund.
Summary
of Principal Risks
Any
investment in the Funds is subject to investment risks, including the possible
loss of the principal amount invested. Below are the principal risks of the
Funds in alphabetical order. The significance of any specific risk to an
investment in a Fund will vary over time, depending on the composition of the
Fund’s portfolio, market conditions, and other factors. Your investment in a
Fund may be subject (in varying degrees) to the following risks discussed below.
Each Fund may be more susceptible to some of the risks than others and not
91
all
risks will be applicable to all Funds. You should read all of the risk
information for your Fund presented below carefully, because any one or more of
these risks may result in losses to the Fund.
Asset Allocation
Risk. The risk that if a Fund’s strategy for allocating assets
among different asset classes does not work as intended, the Fund may not
achieve its objective or may underperform other funds with similar investment
strategies.
China
Risk. To the extent a Fund invests in securities of Chinese
issuers, it may be subject to certain risks and considerations not typically
associated with investing in securities of U.S. issuers, including, among
others, more frequent trading suspensions and government interventions
(including by nationalization of assets), currency exchange rate fluctuations or
blockages, limits on the use of brokers and on non‑U.S. ownership, variable
interest entities (“VIEs”) risks, different financial reporting standards,
higher dependence on exports and international trade, potential for increased
trade tariffs, embargoes and other trade limitations, and custody risks. U.S. or
non‑U.S. government sanctions or other government’s interventions could preclude
a Fund from making certain investments in China or result in a Fund selling
investments in China at disadvantageous times or prices. Significant portions of
the Chinese securities markets may become rapidly illiquid, as Chinese issuers
have the ability to suspend the trading of their equity securities, and have
shown a willingness to exercise that option in response to market volatility and
other events.
Additionally,
in China, U.S. ownership of Chinese companies in certain sectors (including by
U.S. persons and entities, inclusive of U.S. mutual funds) is prohibited. In
order to facilitate non‑U.S. investment, many Chinese companies have created
VIEs that allow non‑U.S. investors, through the use of contractual arrangements,
to both exert a degree of control and to obtain substantially all of the
economic benefits arising from a company without formal legal ownership.
Although VIEs are a longstanding industry practice and have been well known to
Chinese officials and regulators, they have not been formally recognized under
Chinese law. If the Chinese companies (or their officers, directors, or Chinese
equity holders) breached their contracts or if Chinese officials and/or
regulators withdraw their implicit acceptance of the VIE structure or if new
laws, rules or regulations relating to VIE structures are adopted U.S. investors
could suffer substantial, detrimental, and possibly permanent effects with
little or no recourse available. VIE structures do not offer the same level of
investor protections as direct ownership. Investors may experience losses if VIE
structures are altered or disputes emerge over control of the VIE. In December,
2021, the China Securities Regulatory Commission and China’s National
Development and Reform Commission published draft rules that, if declared
effective, will establish a new regulatory framework for VIEs. These proposed
rules acknowledge VIEs for the first time and propose the tightening of
regulations around VIEs, however not all details on how these new regulations
would work in practice are clear at this stage. It remains unclear whether any
new laws, rules, or regulations relating to VIE structures will be adopted or,
if adopted, what impact they would have on the interests of foreign
shareholders.
CLO
Risk. Collateralized loan obligations (“CLOs”) issue classes or
“tranches” that vary in risk and yield and may experience substantial losses due
to actual defaults, decrease of market value due to collateral defaults and
removal of subordinate tranches, market anticipation of defaults and investor
aversion to CLO securities as a class. The risks of investing in CLOs depend
largely on the tranche and the type of the underlying debts and loans in the
tranche. Investments in subordinate tranches may carry greater risk. CLOs also
carry risks including, but not limited to, interest rate risk and credit risk.
Because the underlying assets in CLOs are loans, in the event an underlying loan
is subject to liquidity risks such as the risk of extended settlement,
investments in the corresponding CLOs may be indirectly subject to the same
risks.
Convertible
Securities Risk. Convertible securities subject a Fund to the
risks associated with both fixed-income securities and equity securities. If a
convertible security’s investment value is greater than its conversion value,
its price will likely increase when interest rates fall and decrease when
interest rates rise. If the conversion value exceeds the investment value, the
price of the convertible security will tend to fluctuate directly with the price
of the underlying equity security. Certain “triggering events” may cause a Fund
to lose the principal amount invested in a contingent convertible security and
coupon payments on contingent convertible securities may be
92
discretionary
and cancelled by the issuer. Due to these factors, the value of contingent
convertible securities is unpredictable, and holders of contingent convertible
securities may suffer a loss of capital when comparable equity holders do
not.
Credit
Risk. Credit risk is the risk that an issuer, guarantor or
liquidity provider of a fixed-income security held by a Fund may be unable or
unwilling, or may be perceived (whether by market participants, ratings
agencies, pricing services or otherwise) as unable or unwilling, to make timely
principal and/or interest payments, or to otherwise honor its obligations. It
includes the risk that the security will be downgraded by a credit rating
agency; generally, lower credit quality issuers present higher credit risks. An
actual or perceived decline in creditworthiness of an issuer of a fixed-income
security held by a Fund may result in a decrease in the value of the security.
It is possible that the ability of an issuer to meet its obligations will
decline substantially during the period when a Fund owns securities of the
issuer or that the issuer will default on its obligations or that the
obligations of the issuer will be limited or restructured.
The
credit rating assigned to any particular investment does not necessarily reflect
the issuer’s current financial condition and does not reflect an assessment of
an investment’s volatility or liquidity. Securities rated in the lowest category
of investment grade are considered to have speculative characteristics. If a
security held by a Fund loses its rating or its rating is downgraded, a Fund may
nonetheless continue to hold the security in the discretion of the Adviser or
Subadviser. In the case of asset-backed or mortgage-related securities, changes
in the actual or perceived ability of the obligors on the underlying assets or
mortgages to make payments of interest and/or principal may affect the values of
those securities.
Currency Risk.
A significant portion of a Fund’s assets may be denominated in
non‑U.S. (non‑U.S.) currencies. There is the risk that the value of such assets
and/or the value of any distributions from such assets may decrease if the
currency in which such assets are priced or in which they make distributions
falls in relation to the value of the U.S. dollar. Some emerging markets
countries may have fixed or managed currencies that are not free-floating
against the U.S. dollar. A Fund is not required to hedge its non‑U.S. currency
risk, although it may do so through non‑U.S. currency exchange contracts and
other methods. Therefore, to the extent a Fund does not hedge its non‑U.S.
currency risk, or the hedges are ineffective, the value of a Fund’s assets and
income could be adversely affected by currency exchange rate movements.
Cybersecurity
Risk. The computer systems, networks, and devices used by a Fund
and their service providers to carry out routine business operations employ a
variety of protections designed to prevent damage or interruption from computer
viruses, network failures, computer and telecommunication failures, infiltration
by unauthorized persons, and security breaches. Despite the various protections
utilized by a Fund and its service providers, systems, networks, or devices
potentially can be breached. The Funds and their shareholders could be
negatively impacted as a result of a cybersecurity breach.
Cybersecurity
breaches can include unauthorized access to systems, networks, or devices;
infection from computer viruses or other malicious software code; and attacks
that shut down, disable, slow, or otherwise disrupt operations, business
processes, or website access or functionality. Cybersecurity breaches may cause
disruptions and impact the Funds’ business operations, potentially resulting in
financial losses; interference with a Fund’s ability to calculate its NAV;
impediments to trading; the inability of the Funds, the Adviser or Subadviser,
and other service providers to transact business; violations of applicable
privacy and other laws; regulatory fines, penalties, reputational damage,
reimbursement or other compensation costs, or additional compliance costs; as
well as the inadvertent release of confidential information.
Similar
adverse consequences could result from cybersecurity breaches affecting issuers
of securities in which the Funds invest; counterparties with which the Funds
engage in transactions; governmental and other regulatory authorities; exchange
and other financial market operators, banks, brokers, dealers, insurance
companies, and other financial institutions (including financial intermediaries
and service providers for the Funds’ shareholders); and other parties. In
addition, substantial costs may be incurred by these entities in order to
prevent any cybersecurity breaches in the future.
93
Derivatives
Risk. A derivative is an instrument with a value based on the
performance of an underlying financial asset, index, or other measure. The
types of derivatives that might be used by a Fund may include futures and
forward contracts, options, swaps, and other similar instruments. The use
of derivative contracts may involve risks different from, or greater than, the
risks associated with investing in more traditional investments, such as stocks
and bonds. These risks include: (i) the risk that the counterparty to a
derivative transaction may not fulfill its contractual obligations;
(ii) the risk of mispricing or improper valuation; and (iii) the risk
that changes in the value of the derivative may not correlate perfectly with the
underlying asset, rate, or index. Derivatives can be complex and may perform in
ways unanticipated by the Adviser or Subadviser. Derivatives may be
volatile, difficult to value, and a Fund may not be able to close out or sell a
derivative position at a particular time or at an anticipated price.
ETF Risk.
Shareholders of the Fund will indirectly be subject to the fees
and expenses of the individual ETFs in which the Fund invests. In addition, an
ETF may not replicate exactly the performance of the benchmark index it seeks to
track for a number of reasons, including transaction costs incurred by the ETF,
the temporary unavailability of certain index securities in the secondary market
or discrepancies between the ETF and the index with respect to the weighting of
securities or the number of securities held.
Equity Securities
Risk. Equity securities represent an ownership interest, or the
right to acquire an ownership interest, in an issuer. Equity securities include
both direct and indirect investments in such ownership interests, such as public
and privately issued equity securities and common and preferred stocks, warrants
and rights to subscribe to common stock or other equity securities, convertible
securities, and derivative instruments that are expected or intended to track
the price movement of equity indices. Different types of equity securities
(including different types of instruments that provide direct or indirect
exposure to ownership interests in issuers) provide different voting and
dividend rights and priority in the event of a bankruptcy and/or insolvency of
the issuer. In general, investments in equity securities and equity derivatives
are subject to market risks that may cause their prices to fluctuate over time.
The value of securities convertible into equity securities, such as warrants or
convertible debt, is also affected by prevailing interest rates, the credit
quality of the issuer and any call provision. Fluctuations in the value of
equity securities in which a mutual fund invests will cause a Fund’s net asset
value to fluctuate. Historically, the equity markets have moved in cycles, and
the value of a Fund’s equity securities may fluctuate drastically from
day‑to‑day. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments. The prices of
securities issued by such companies may suffer a decline in response. An
investment in a portfolio of equity securities may be more suitable for
long-term investors who can bear the risk of these share price
fluctuations.
Depositary
Receipts. Depositary
receipts may be sponsored or unsponsored. Although the two types of depositary
receipt facilities are similar, there are differences regarding a holder’s
rights and obligations and the practices of market participants. Holders of
unsponsored depositary receipts generally bear all the costs of the facility.
The depositary usually charges fees upon the deposit and withdrawal of the
underlying securities, the conversion of dividends into U.S. dollars or other
currency, the disposition of non‑cash distributions, and the performance of
other services. The depositary of an unsponsored facility frequently is under no
obligation to distribute shareholder communications received from the underlying
issuer or to pass through voting rights with respect to the underlying
securities to depositary receipt holders. With sponsored facilities, the
underlying issuer typically bears some of the costs of the depositary receipts
(such as dividend payment fees of the depositary), although most sponsored
depositary receipt holders may bear costs such as deposit and withdrawal fees.
Depositaries of most sponsored depositary receipts agree to distribute notices
of shareholder meetings, voting instructions, and other shareholder
communications and financial information to the depositary receipt holders at
the underlying issuer’s request. Some Funds may also invest in certain
depositary receipts without voting rights, for example, Thai non‑voting
depositary receipts (“NVDRs”). NVDRs are similar to other depositary receipts
except that they do not allow the holder to participate in company decision
making through voting. See Investment Strategies and Risks – Depositary Receipts
in the Funds’ Statement of Additional Information (“SAI”) for additional
information.
94
Emerging Markets
Risk. Investing in
emerging market securities magnifies the risks inherent in non‑U.S. investments.
In addition to the risks of investing in non‑U.S. investments generally,
emerging markets investments are subject to greater risks arising from political
or economic instability, nationalization or confiscatory taxation, currency
exchange restrictions, sanctions by other countries (such as the United States)
and an issuer’s unwillingness or inability to make principal or interest
payments on its obligations. Emerging markets companies may be smaller and have
shorter operating histories than companies in developed markets. To the extent a
Fund invests in frontier countries, these risks will be magnified. Frontier
countries generally have smaller economies or less developed capital markets
than traditional emerging market countries.
Some
countries with emerging securities markets have experienced substantial, and in
some periods extremely high, rates of inflation for many years. Inflation and
rapid fluctuations in inflation rates have had and may continue to have negative
effects on the economies and securities markets of certain countries. Moreover,
the economies of some countries may differ favorably or unfavorably from the
U.S. economy in such respects as rate of growth of gross domestic product, rate
of inflation, capital reinvestment, resource self-sufficiency, number and depth
of industries forming the economy’s base, condition and stability of financial
institutions, governmental controls, and investment restrictions that are
subject to political change and balance of payments position. Issuers of
non‑U.S. securities (particularly those tied economically to emerging countries)
often are not subject to as much regulation as U.S. issuers, and the reporting,
accounting, custody, and auditing standards to which those issuers are subject
often are not as rigorous as U.S. standards. Further, a Fund may face greater
difficulties or restrictions with respect to investments made in emerging
markets countries than in the United States. Satisfactory custodial services may
not be available in some emerging markets countries, which may result in a Fund
incurring additional costs and delays in the transportation and custody of such
securities. A sub‑set of emerging markets, frontier markets, are less developed
than other emerging markets and are the most speculative. They have the least
number of investors and may not have a stock market on which to trade. Most
frontier markets consist chiefly of stocks of financial, telecommunications, and
consumer companies that count on monthly payments from customers.
Investments in this sector are typically illiquid, nontransparent, and
subject to very low levels of regulation and high transaction fees. Frontier
market investments may be subject to substantial political and currency risk.
The risk of investing in frontier markets can be increased due to government
ownership or control of parts of private sector and of certain companies; trade
barriers, exchange controls, managed adjustments in relative currency values,
and other protectionist measures imposed or negotiated by frontier market
countries or their trading partners; and the relatively new and unsettled
securities laws in many frontier market countries. These risks can result in the
potential for extreme price volatility.
Equity-Linked
Instruments Risk. There is a risk that, in addition to market risk
and other risks of the referenced equity security, a Fund may experience a
return that is different from that of the referenced equity security.
Equity-linked instruments also subject a Fund to counterparty risk, including
the risk that the issuing entity may not be able to honor its financial
commitment, which could result in a loss of all or part of a Fund’s
investment.
ESG Factor
Risk. To the extent portfolio managers of a Fund incorporate
environmental, social and/or governance considerations (“ESG factors”) into
their investment process, the Fund will be subject to risks associated with the
relevant ESG factors. Environmental performance criteria rate a company’s
management of its environmental challenges, including its effort to reduce or
offset the impacts of its products and operations. Social criteria measure how
well a company manages its impact on the communities where it operates,
including its treatment of local populations, its handling of human rights
issues, its record regarding labor-management relations, anti-discrimination
policies and practices, employee safety and the quality and safety record of a
company’s products, its marketing practices and any involvement in regulatory or
anti-competitive controversies. Governance criteria address a company’s investor
relations and management practices, including company sustainability reporting,
board accountability and business ethics policies and practices.
In
general, use of ESG factors in the securities selection process will affect a
Fund’s exposure to certain issuers, industries, sectors, regions, and countries;
may lead to a smaller universe of investments than other funds that do
95
not
incorporate ESG factor analysis; and may negatively impact the relative
performance of the Fund over the short, medium or even long term depending on
how successfully those ESG factors are incorporated and whether such investments
are in or out of favor.
Successful
incorporation of ESG factors into a Fund’s overall investment strategy will
depend on its portfolio managers’ ability to identify and analyze financially
material ESG issues, and there can be no assurance that the strategy or
techniques employed will be successful.
Euro- and
Eurozone‑Related Risk. To the extent a Fund invests in investments
located in Europe, it may be subject to risks not typically associated with
investments in the United States. A majority of western European countries and a
number of eastern European countries are members of the European Union, an
intergovernmental union aimed at developing economic and political coordination
and cooperation among its member states. European countries that are members of
the Economic and Monetary Union of the European Union (“EMU”) are subject to
restrictions on inflation rates, interest rates, deficits, and debt levels. The
EMU sets out different stages and commitments for member states to follow in an
effort to achieve greater coordination of economic, fiscal, and monetary
policies. As a condition to adopting the euro, EMU member states must also
relinquish control of their monetary policies to the European Central Bank and
become subject to certain monetary and fiscal controls imposed by the EMU. These
controls remove EMU member states’ flexibility in implementing monetary policy
measures to address regional economic conditions, which may impair their ability
to respond to crises. A number of countries in the European Union have
experienced, and may continue to experience, severe economic and financial
difficulties. Additional European Union member countries may also fall subject
to such difficulties. These events could negatively affect the value and
liquidity of a Fund’s investments in euro-denominated securities and derivatives
contracts, as well as securities of issuers located in the European Union or
with significant exposure to European Union issuers or countries, to the extent
a Fund invests in such securities. If the euro is dissolved entirely, the legal
and contractual consequences for holders of euro-denominated obligations and
derivative contracts would be determined by laws in effect at such time. Such
investments may continue to be held, or purchased, to the extent consistent with
a Fund’s investment objective and permitted under applicable law. These
potential developments, or market perceptions concerning these and related
issues, could adversely affect the value of a Fund’s shares.
Continuing
uncertainty as to the status of the European Economic and Monetary Union (“EMU”)
and the potential for certain countries to withdraw from the institution has
created significant volatility in currency and financial markets generally. Any
partial or complete dissolution of the EU could have significant adverse effects
on currency and financial markets, and on the values of a Fund’s portfolio
investments. On January 31, 2020, the UK left the EU (commonly known as
“Brexit”). An agreement between the UK and the EU governing their future trade
relationship became effective January 1, 2021, but critical aspects of the
relationship remain unresolved and subject to further negotiation and agreement.
Brexit has resulted in volatility in European and global markets and could have
negative long-term impacts on financial markets in the UK and throughout Europe.
There is still considerable uncertainty relating to the potential consequences
of the exit, how the negotiations for new trade agreements will be conducted,
and whether the UK’s exit will increase the likelihood of other countries also
departing the EU. During this period of uncertainty, the negative impact on not
only the UK and European economies, but the broader global economy, could be
significant, potentially resulting in increased market volatility and
illiquidity, political, economic, and legal uncertainty, and lower economic
growth for companies that rely significantly on Europe for their business
activities and revenues. Any further exits from the EU, or the possibility of
such exits, or the abandonment of the Euro, may cause additional market
disruption globally and introduce new legal and regulatory uncertainties.
If
one or more EMU countries were to stop using the euro as its primary currency, a
Fund’s investments in such countries may be redenominated into a different or
newly adopted currency. As a result, the value of those investments could
decline significantly and unpredictably. In addition, securities or other
investments that are redenominated may be subject to liquidity risk and the risk
that a Fund may not be able to value investments accurately to a greater extent
than similar investments currently denominated in euros. To the extent a
currency
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used
for redenomination purposes is not specified in respect of certain EMU related
investments, or should the euro cease to be used entirely, the currency in which
such investments are denominated may be unclear, making such investments
particularly difficult to value or dispose of. A Fund may incur additional
expenses to the extent it is required to seek judicial or other clarification of
the denomination or value of such securities.
Fixed Income
Risk. Some Funds may invest in fixed income securities. These
securities will increase or decrease in value based on changes in interest
rates. If rates increase, the value of a Fund’s fixed income securities
generally declines. On the other hand, if rates fall, the value of the fixed
income securities generally increases. Your investment will decline in value if
the value of a Fund’s investments decreases. Fixed income securities with
greater interest rate sensitivity and longer maturities tend to produce higher
yields, but are subject to greater fluctuations in value. Usually, changes in
the value of fixed income securities will not affect cash income generated, but
may affect the value of your investment.
Focused Investment
Risk. Focusing investments in a particular market, sector or value
chain (which may include issuers in a number of different industries) increases
the risk of loss because the stocks of many or all of the companies in such
market, sector or value chain may decline in value due to economic, market,
technological, political or regulatory developments adversely affecting the
market or value chain.
Geographic Focus
Risk. From time to time a Fund’s investment may be focused in a
particular geographic region. The value of the investments of a Fund that
focuses its investments in a particular geographic location will be highly
sensitive to financial, economic, political, and other developments affecting
the fiscal stability of that location, and conditions that negatively impact
that location will have a greater impact on the Fund as compared with a fund
that does not have its holdings similarly focused. Events negatively affecting
such location are therefore likely to cause the value of a Fund’s shares to
decrease, perhaps significantly.
Growth Investing
Risk. The prices of growth stocks may be based largely on
expectations of future earnings, and can decline rapidly and significantly in
reaction to negative news about various factors, such as earnings, revenues, the
economy, political developments, or other news. Growth stocks may underperform
stocks in other broad style categories (and the stock market as a whole) over a
short or long period of time. Growth stocks may shift in and out of favor with
investors generally, sometimes rapidly, depending on changes in market,
economic, and other factors. As a result, at times when it holds investments in
growth stocks, a Fund may underperform other investment funds that favor
different investment styles. Because growth companies typically reinvest their
earnings, growth stocks typically do not pay dividends at levels associated with
other types of stocks, if at all.
GARP Investment
Strategy Risk. GARP investing involves buying stocks that
have a reasonable price/earnings ratio in relationship to the relevant company’s
earnings growth rate. To the extent a Fund uses a GARP investing strategy, the
Fund’s performance may be adversely affected when stocks preferred by a GARP
investing strategy underperform or are not favored by investors in prevailing
market and economic conditions. To the extent a Fund’s GARP investment strategy
incorporates value investing, the Fund will be subject to the risks associated
with value securities. See “Value Investing Risk” below.
Hedging Risk.
Some Funds may invest in hedging assets. Hedging is a strategy in
which a Fund uses a derivative or other security to offset certain risks
associated with other Fund holdings or to render the portfolio more resilient to
market fluctuations. There can be no assurance that a Fund’s hedging strategy
will reduce risk or that hedging transactions will be either available or cost
effective. A Fund is not required to use hedging and may choose not to do
so.
High Yield (“Junk
Bond”) Investments Risk. Some Funds may invest in high yield
securities, also known as “junk bonds,” which have a higher risk of issuer
default or may be in default. The securities are not investment grade and are
generally considered speculative because they present a greater risk of loss
than higher quality debt securities. In particular, lower-rated high yield
securities (CCC or below) are subject to a greater degree of credit risk than
higher-rated high yield bonds. These lower-rated or defaulted debt securities
may fluctuate more in price, and are less liquid than higher-rated securities
because issuers of such lower-rated debt securities are not as
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strong
financially, and are more likely to encounter financial difficulties and be more
vulnerable to adverse changes in the economy. In the event of an issuer’s
bankruptcy, claims of other creditors may have priority over the claims of high
yield bond holders, leaving few or no assets available to repay high yield bond
holders. A characteristic of the high yield bond is the issuance of securities
under Rule 144A, many with registration rights. Some Funds may invest in high
yield securities issue under Rule 144A, with or without registration
rights.
India
Risk. Government actions,
bureaucratic obstacles and inconsistent economic reform within the Indian
government have had a significant effect on the economy and could adversely
affect market conditions, economic growth and the profitability of private
enterprises. Global economic developments may inhibit the flow of non‑U.S.
capital on which India is dependent to sustain its growth. Large portions of
many Indian companies remain in the hands of individuals and corporate
governance standards of Indian companies may be weaker and less transparent,
which may increase the risk of loss and unequal treatment of investors. To the
extent a Fund invests in investments in India, it may be subject to risks
presented by investments in an emerging market country, including liquidity
risk, which may result in extreme volatility in the prices of Indian securities.
Religious, cultural and military disputes persist in India, and between India
and Pakistan (as well as between sectarian groups within each country). In
addition, the Indian economy could be adversely impacted by natural disasters
and acts of terrorism. Both India and Pakistan have tested nuclear arms, and the
threat of deployment of such weapons could hinder development of the Indian
economy, and escalating tensions could impact the broader region.
Interest Rate
Risk. When interest rates increase, fixed income securities or
instruments held by a Fund will generally decline in value. When interest rates
fall, the value of fixed income securities generally increase. Long-term fixed
income securities or instruments will normally have more price volatility
because of this risk than short term fixed income securities or instruments. The
risks associated with changing interest rates may have unpredictable effects on
the markets and a Fund’s investments. Fluctuations in interest rates may also
affect the liquidity of fixed income securities and instruments held by a Fund.
Your investment will decline in value if the value of the Fund’s investments
decreases. Recently, there have been inflationary price movements, which have
caused the fixed income securities markets to experience heightened levels of
interest rate volatility and liquidity risk. The risks associated with rising
interest rates may be particularly acute in the current market environment
because the Federal Reserve Board recently raised rates and may continue to do
so.
Investment Company
Risk. If a Fund invests in shares of another investment company,
shareholders will indirectly bear fees and expenses charged by the underlying
investment companies in which a Fund invests in addition to the Fund’s direct
fees and expenses. A Fund also will incur brokerage costs when it purchases ETFs
and closed‑end funds. Furthermore, investments in other funds could affect the
timing, amount, and character of distributions to shareholders and therefore may
increase the amount of taxes payable by investors in a Fund.
IPO
Risk. A Fund may purchase securities in IPOs. These securities are
subject to many of the same risks of investing in companies with smaller market
capitalizations. Securities issued in IPOs have no trading history, and
information about the companies may be available for very limited periods. In
addition, the prices of securities sold in IPOs may be highly volatile.
Japan
Risk. The Japanese economy
may be subject to economic, political and social instability, which could have a
negative impact on Japanese securities, and may impact a Fund’s performance to
the extent it invests in such securities. In the past, Japan’s economic growth
rate has remained relatively low, and it may remain low in the future. At times,
the Japanese economy has been adversely impacted by government intervention and
protectionism, changes in its labor market, and an unstable financial services
sector. International trade, government support of the financial services sector
and other troubled sectors, government policy, natural disasters and/or
geopolitical developments could significantly affect the Japanese economy. A
significant portion of Japan’s trade is conducted with developing nations and
can be affected by conditions in these nations or by currency fluctuations.
Japan is an island state with few natural resources and limited land area and is
reliant on imports for its commodity needs. Any fluctuations or shortages in the
commodity markets could have a negative impact on the Japanese economy.
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Key Person
Risk. Key person risk is the risk that results when a Fund’s
investment program is highly dependent on the investment skill and dedication of
a small number of “key” persons at the Adviser or Subadviser, which can result
in decreased investment results if these “key” persons become unable to apply
their full attention to the management of a Fund’s investments for health or
other reasons.
LIBOR
Risk. LIBOR is a benchmark interest rate at which major global
banks lend to one another in the international interbank market for short-term
loans, and has been used extensively in the United States and globally as a
“reference rate” for certain financial instruments in which a Fund may invest,
including corporate and municipal bonds, bank loans, asset-backed and
mortgage-related securities, interest rate swaps and other derivatives.
Additionally, a Fund may borrow money at rates that are based on LIBOR. In 2017,
the United Kingdom Financial Conduct Authority (“FCA”), the agency that oversees
LIBOR, announced its intention to cease compelling banks to provide the
quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the
administrator of LIBOR, ceased publication of most LIBOR settings on a
representative basis at the end of 2021 and is expected to cease publication of
a majority of U.S. dollar LIBOR settings on a representative basis after
June 30, 2023. In addition, global regulators have announced that, with
limited exceptions, no new LIBOR-based contracts should be entered into after
2021. Actions by regulators have resulted in the establishment of alternative
reference rates to LIBOR in most major currencies. In March 2022, the U.S.
federal government enacted legislation to establish a process for replacing
LIBOR in certain existing contracts that do not already provide for the use of a
clearly defined or practicable replacement benchmark rate as described in the
legislation. Generally speaking, for contracts that do not contain a fallback
provision as described in the legislation, a benchmark replacement recommended
by the Federal Reserve Board will effectively automatically replace the USD
LIBOR benchmark in the contract after June 30, 2023. The recommended
benchmark replacement will be based on the Secured Overnight Financing Rate
(SOFR) published by the Federal Reserve Bank of New York, including certain
spread adjustments and benchmark replacement conforming changes. Various
financial industry groups have been planning for the transition away from LIBOR,
but there remains uncertainty regarding the impact of the transition from LIBOR
on the fund’s transactions and the financial markets generally. The transition
away from LIBOR may lead to increased volatility and illiquidity in markets that
rely on LIBOR and may adversely affect the fund’s performance. The transition
may also result in a reduction in the value of certain LIBOR-based investments
held by the fund or reduce the effectiveness of related transactions such as
hedges. Any such effects of the transition away from LIBOR, as well as other
unforeseen effects, could result in losses for the fund. Since the usefulness of
LIBOR as a benchmark could also deteriorate during the transition period,
effects could occur at any time.
Limited History of
Operations. Each of Regnan Global Equity Impact Solutions, TSW
Emerging Markets Fund, and TSW High Yield Bond Fund is a newly organized,
diversified, open‑end management investment company with a limited operating
history. As a result, prospective investors have a limited track record or
history on which to base their investment decision. The Adviser or its
affiliates may contribute “seed capital” in connection with the launch of a Fund
to commence operations prior to investment by third parties. Seed capital may
represent ownership of up to 100% of a Fund during its initial phase of
operation and, in limited circumstances, during subsequent periods. It is
anticipated that over time this percentage will decrease. Funds with higher
percentages of seed capital may exhibit different portfolio dynamics or
performance profiles than those with a lower percentage of seed capital.
Liquidity
Risk. The Funds may make investments that are illiquid or that may
become less liquid in response to market developments or adverse investor
perceptions. Illiquid investments may be more difficult to value. Liquidity risk
may be amplified in situations where foreign countries close their securities
markets for extended periods of time due to scheduled holidays, such as the
week-long closure of Chinese securities markets that occurs annually in
October.
Loan-Related
Investments Risk. In addition to risks generally associated with
debt investments (e.g., interest rate risk and default risk), loan-related
investments such as loan participations and assignments are subject to other
risks. Although a loan obligation may be fully collateralized at the time of
acquisition, the collateral may decline
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in
value, be or become illiquid or less liquid, or lose all or substantially all of
its value subsequent to investment. Bank loans are generally less liquid than
many other debt securities. Transactions in bank loans may settle on a delayed
basis (and in certain cases may take longer than seven days to settle), such
that a Fund may not receive the proceeds from the sale of a loan for a
substantial period of time after the sale. As a result, the proceeds related to
the sale of bank loans may not be available to make additional investments or to
meet a Fund’s redemption obligations until a substantial period after the sale
of the loans.
Long-Term Investment
Strategy Risk. Each of Regnan Global Equity Impact Solutions and
the TSW Large Cap Value Fund pursues a long-term investment approach, typically
seeking returns over a period of several years. This investment style may cause
those Funds to lose money or underperform compared to its benchmark index or
other mutual funds over extended periods of time, and the Funds may not perform
as expected in the long term. An investment in the Funds may be more suitable
for long-term investors who can bear the risk of short- or medium-term
fluctuations in the value of the Funds’ portfolio.
Management
Risk. The Adviser or Subadviser’s dependence, for certain of the
Funds, on a quantitative strategy, and the Adviser or Subadviser’s judgments
about the attractiveness, value, and potential appreciation of, or social and
environmental factors related to, a particular asset class or individual
security in which a Fund invests may prove to be incorrect, and there is no
guarantee that individual securities will perform as anticipated. Any given
investment strategy may fail to produce the intended results, and a Fund’s
portfolio may underperform other comparable funds because of portfolio
management decisions related to, among other things, the selection of
investments, portfolio construction, risk assessments, and/or the outlook on
market trends and opportunities.
Municipal Securities
Risk. Municipal securities are obligations, often bonds and notes,
issued by or on behalf of states, territories and possessions of the United
States and the District of Columbia and their political subdivisions, agencies,
authorities and instrumentalities, the interest on which is typically exempt
from federal income tax.
Municipal
bonds are generally considered riskier investments than Treasury securities. The
prices and yields on municipal securities are subject to change from time to
time and depend upon a variety of factors, including general money market
conditions, the financial condition of the issuer (or other entities whose
financial resources are supporting the municipal security), general conditions
in the market for tax‑exempt obligations, the size of a particular offering and
the maturity of the obligation and the rating(s) of the issue. The value of
municipal bonds that depend on a specific revenue source or general revenue
source to fund their payment obligations may fluctuate as a result of changes in
the cash flows generated by the revenue source(s) or changes in the priority of
the municipal obligation to receive the cash flows generated by the revenue
source(s). In addition, changes in federal tax laws or the activity of an issuer
may adversely affect the tax‑exempt status of municipal bonds.
Changes
in a municipality’s financial health may make it difficult for the municipality
to make interest and principal payments when due. A number of municipalities
have had significant financial problems recently, and these and other
municipalities could, potentially, continue to experience significant financial
problems resulting from lower tax revenues and/or decreased aid from state and
local governments in the event of an economic downturn. This could decrease a
Fund’s income or hurt the ability to preserve capital and liquidity. Under some
circumstances, municipal securities might not pay interest unless the state
legislature or municipality authorizes money for that purpose. Some securities,
including municipal lease obligations, carry additional risks. For example, they
may be difficult to trade or interest payments may be tied only to a specific
stream of revenue. Since some municipal securities may be secured or guaranteed
by banks and other institutions, the risk to a Fund could increase if the
banking or financial sector suffers an economic downturn and/or if the credit
ratings of the institutions issuing the guarantee are downgraded or at risk of
being downgraded by a national rating organization. If such events were to
occur, the value of the security could decrease or the value could be lost
entirely, and it may be difficult or impossible for the Fund to sell the
security at the time and the price that normally prevails in the market.
Interest on municipal obligations, while generally exempt from federal income
tax, may not be exempt from federal alternative minimum tax.
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Natural
Disaster/Epidemic Risk. Natural or environmental
disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other
severe weather-related phenomena generally, and widespread disease, including
pandemics and epidemics, have been and may be highly disruptive to economies and
markets, adversely impacting individual companies, sectors, industries, markets,
currencies, interest and inflation rates, credit ratings, investor sentiment,
and other factors affecting the value of a Fund’s investments. Given the
increasing interdependence among global economies and markets, conditions in one
country, market, or region are increasingly likely to adversely affect markets,
issuers, and/or non‑U.S. exchange rates in other countries, for example, an
epidemic or pandemic can result in travel restrictions, closed international
borders, enhanced health screenings at ports of entry and elsewhere, disruption
of and delays in healthcare service preparation and delivery, prolonged
quarantines, cancellations, supply chain disruptions, and lower consumer demand,
as well as general concern and uncertainty. All of these disruptive effects were
present, for example, in the global pandemic linked to the outbreak of
respiratory disease caused by a novel coronavirus designated as COVID‑19 that
was first reported in China in December 2019. The effects of any disease
outbreak may be greater in countries with less developed disease prevention and
control programs and may also exacerbate other pre‑existing political, social,
economic, market and financial risks. A pandemic and its effects may be short
term or may last for an extended period of time, and in either case can result
in significant market volatility, exchange trading suspensions and closures,
declines in global financial markets, higher default rates, and a substantial
economic downturn or recession. Infectious illness outbreaks can adversely
affect the economies of many nations or the entire global economy, individual
issuers and capital markets in ways that cannot necessarily be foreseen. Any
such events could have a significant adverse impact on the value of a Fund’s
investments.
Non‑U.S. Securities
Risk. Non‑U.S. securities risk is the risk associated with
investments in issuers located in non‑U.S. countries. Investing in non‑U.S.
securities poses additional market risks since political and economic events
unique in a country or region will affect those markets and their issuers and
may not affect the U.S. economy or U.S. issuers. Securities markets outside the
U.S., while growing in volume, have for the most part substantially less volume
than U.S. markets, and many securities traded on these non‑U.S. markets are less
liquid and their prices are more volatile than securities of comparable U.S.
companies. In addition, settlement of trades in some non‑U.S. markets is much
slower and more subject to failure than in U.S. markets. Other risks associated
with investing in non‑U.S. securities include, among other things, imposition of
exchange control regulation by the U.S. or non‑U.S. governments, U.S. and
non‑U.S. withholding or other taxes, limitations on the removal of funds or
other assets, policies of governments with respect to possible nationalization
of their industries, and economic or political instability in non‑U.S. nations.
There may be less publicly available information about certain non‑U.S.
companies than would be the case for comparable companies in the U.S. and
certain non‑U.S. companies may not be subject to accounting, auditing, and
financial reporting standards and requirements comparable to or as uniform as
those of U.S. companies. The Public Company Accounting Oversight Board, which
regulates auditors of U.S. public companies, is unable to inspect audit work
papers in certain non‑U.S. countries. Investors in non‑U.S. countries often have
limited rights and few practical remedies to pursue shareholder claims,
including class actions or fraud claims, and the ability of the SEC, the U.S.
Department of Justice and other authorities to bring and enforce actions against
non‑U.S. issuers or non‑U.S. persons is limited. Many countries, including
developed nations and emerging markets, are faced with concerns about high
government debt levels, credit rating downgrades, the future of the euro as a
common currency, possible government debt restructuring and related issues, all
of which may cause the value of a Fund’s non‑U.S. investments to decline.
Nationalization, expropriation or confiscatory taxation, currency blockage,
the imposition of sanctions by other countries (such as the United States),
political changes or diplomatic developments may also cause the value of a
Fund’s non‑U.S. investments to decline. When imposed, non‑U.S. withholding or
other taxes reduce a Fund’s return on non‑U.S. securities. In the event of
nationalization, expropriation or other confiscation, a Fund could lose its
entire non‑U.S. investment. Investments in emerging markets may be subject to
these risks to a greater extent than those in more developed markets and
securities of developed market companies that conduct substantial business in
emerging markets may also be subject to greater risk. These risks also apply to
securities of non‑U.S. issuers traded in the United States or through depositary
receipt programs such as American Depositary Receipts. In certain cases,
depositary receipts may also be issued through programs in local markets, such
as Thai NVDRs. See Summary of Principal Risks – Depositary Receipts in this
Prospectus
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for
additional information. To the extent a Fund invests a significant portion of
its assets in a specific geographic region, the Fund may have more exposure
to regional political, economic, environmental, credit/counterparty and
information risks. In addition, non‑U.S. securities may be subject to
increased credit/counterparty risk because of the potential difficulties of
requiring non‑U.S. entities to honor their contractual
commitments.
Participatory Notes
Risk. Participatory notes are equity access products structured as
debt obligations issued by banks or broker-dealers that are designed to
replicate the performance of certain issuers and markets where direct investment
is either impossible or difficult due to local restrictions. The performance
results of participatory notes will not replicate exactly the performance of the
issuers or markets that the notes seek to replicate due to transaction costs and
other expenses. Investments in participatory notes involve the same risks
associated with a direct investment in the shares of the companies the notes
seek to replicate. In addition, participatory notes are subject to counterparty
risk, which is the risk that the broker-dealer or bank that issues the notes
will not fulfill its contractual obligation to complete the transaction with a
Fund. Some participatory notes may be considered illiquid and, therefore, will
be subject to a Fund’s percentage limitation for investments in illiquid
securities. The Funds may take long or short positions in participatory
notes.
Preferred Stock Risk.
A Fund may invest in preferred stock. The value of preferred
stocks will fluctuate with changes in interest rates. Typically, a rise in
interest rates causes a decline in the value of preferred stock. Preferred
stocks are also subject to credit risk, which is the possibility that an issuer
of preferred stock will fail to make its dividend payments.
Portfolio Turnover
Risk. A Fund may sell its portfolio securities, regardless of the
length of time that they have been held, if the Adviser or Subadviser determines
that it would be in the Fund’s best interest to do so. It may be appropriate to
buy or sell portfolio securities due to economic, market, or other factors that
are not within the Adviser or Subadviser’s control. These transactions will
increase a Fund’s “portfolio turnover.” A 100% portfolio turnover rate would
occur if all of the securities in a Fund were replaced during the annual
measurement period. High turnover rates generally result in higher brokerage
costs to a Fund, may result in higher amounts of taxable distributions to
shareholders each year and higher effective tax rates on those distribution
amounts, and may reduce the Fund’s returns.
Regulatory
Risk. Changes in the
laws or regulations of the United States or other countries, including changes
to applicable tax laws and regulations, could impair the ability of a Fund to
achieve its investment objective and could increase the operating expenses of
the Fund.
REIT
Risk. REITs are subject to certain other risks related to their
structure and focus. REITs generally are dependent upon management skills and
may not be diversified. REITs are also subject to heavy cash flow dependency,
defaults by borrowers and self-liquidation. In addition, REITs could possibly
fail to (i) qualify for favorable tax treatment under applicable tax law,
or (ii) maintain their exemptions from registration under the Investment
Company Act of 1940, as amended (the “1940 Act”). The above factors may also
adversely affect a borrower’s or a lessee’s ability to meet its obligations to
the REIT. In the event of a default by a borrower or lessee, the REIT may
experience delays in enforcing its rights as a mortgagee or lessor and may incur
substantial costs associated with protecting its investments.
Small‑Cap and Mid‑Cap
Company Risk. Small- and mid‑capitalization companies may be more
vulnerable to adverse business or economic events than larger, more established
companies. In particular, these small- and mid‑capitalization companies may have
limited product lines, markets, and financial resources, and may depend upon a
relatively small management group. These companies may experience higher growth
rates and higher interest rates than larger capitalization companies. Therefore,
small- and mid‑cap stocks may be more volatile than those of larger companies.
Small cap securities may be traded over the counter or listed on an exchange and
it may be harder to sell the smallest capitalization company stocks, which can
reduce their selling prices. Smaller capitalization companies may be
particularly affected by interest rate increases, as they may find it more
difficult to borrow money to continue or expand operations, or may have
difficulty in repaying any loans that have a floating interest rate.
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South Korea
Risk. To the extent a Fund invests in investments located in South
Korea, the Fund will be susceptible to adverse market, political, regulatory and
geographic events affecting South Korea. The South Korean economy is dependent
on the economies of other Asian countries, especially China and Southeast Asia,
and the United States as key trading partners. Furthermore, South Korea’s
economy may be significantly affected by currency fluctuations and increasing
competition from Asia’s other low‑cost emerging economies. Also, tensions with
North Korea could escalate and lead to further uncertainty in the political and
economic climate of South Korea.
Taiwan
Risk. The economy of Taiwan is heavily dependent on exports.
Currency fluctuations, increasing competition from Asia’s other emerge
economies, and conditions that weaken demand for Taiwan’s export products
worldwide could have a negative impact on the Taiwanese economy as a whole, and
may impact a Fund’s performance to the extent the Fund invests in such
securities. Additionally, a disruption in Taiwan’s exports could also result in
broader negative economic impacts with respect to those industries and countries
that rely upon them. Concerns over Taiwan’s history of political contention and
its current relationship with China may also have a significant impact on the
economy of Taiwan.
United Kingdom
Investments Risk. The United Kingdom has one of the largest
economies in Europe and is heavily dependent on trade with the European Union,
and to a lesser extent the United States and China. As a result, the British
economy may be impacted by changes to the economic condition of the United
States, China and other European countries. The British economy relies heavily
on the export of financial services to the United States and other European
countries and, therefore, a prolonged slowdown in the financial services sector
may have a negative impact on the British economy, as well as on a Fund, to the
extent the Fund invests in investments located in the United Kingdom.
Furthermore, the United Kingdom voted via referendum to leave the European Union
(“Brexit”). After years of negotiations, a trade agreement between the United
Kingdom and the European Union became effective on January 1, 2021, but
critical aspects of the relationship remain unresolved and subject to further
negotiation and agreement. The impact of Brexit on the economies of the United
Kingdom and its trading partners is still uncertain.
Value Investing
Risk. Value securities are securities of companies that may have
experienced adverse business, industry, or other developments or may be subject
to special risks that have caused the securities to be out of favor and, in
turn, potentially undervalued. It may take longer than expected for the value of
such securities to rise to the anticipated value, or the value may never do so.
In addition, value securities, at times, may not perform as well as growth
securities or the stock market in general, and may be out of favor with
investors for varying periods of time.
Portfolio
Holdings Disclosure
A
description of the Funds’ policies and procedures with respect to the disclosure
of the portfolio holdings is available in the SAI.
PRIOR RELATED PERFORMANCE
The
following tables set forth historical performance information for a separate
account (“Comparable Account”) that has a substantially similar investment
objective, policy and strategy as the TSW High Yield Bond Fund and is managed by
Thompson, Siegel & Walmsley LLC, a Delaware limited liability company
(“TSW” or the “Subadviser”).
The
Comparable Account data is provided to illustrate the past performance of a
substantially similar account as measured against a specified market index and
does not represent the performance of the Fund. The Comparable Account is
separate and distinct from the Fund; the performance of the Comparable Account
is not intended as a substitute for a Fund’s performance and should not be
considered a prediction of the future performance of the Fund or of TSW.
103
The
Comparable Account’s performance data shown below was calculated in accordance
with recognized industry standards, consistently applied to all time periods.
All returns presented were calculated on a total return basis, and assume the
reinvestment of dividends, capital gains and other earnings. All returns are net
of trading costs, without provision for U.S. federal or state income taxes. “Net
of Fees” figures also reflect the deduction of all fees applicable to the
account in the composite including a bundled fee (which includes all effective
charges for management fees, custody and other administrative fees) and
performance fees. “Gross of Fees” figures show performance without taking into
account the deductions of any fees.
Securities
transactions are accounted for on trade date and accrual accounting is utilized.
Cash and equivalents are included in performance returns. Monthly returns of the
Comparable Account reflect the value as of the last trading day of the month.
Monthly returns are linked together in order to calculate annual returns.
Performance information shown below was calculated differently than the
methodology mandated by the SEC for registered investment companies.
The
Comparable Account may not be subject to the diversification requirements,
specific tax restrictions and investment limitations imposed on the Fund by the
Investment Company Act of 1940 or Subchapter M of the Internal Revenue Code.
Consequently, the performance results for the Comparable Account would have been
less favorable had the underlying account been subject to the same expenses as
the Fund and may have been less favorable had it been regulated as an investment
company under the federal securities laws. The expenses used in the Comparable
Account are lower than those used in the Fund.
The
returns set forth below may not be representative of the results that may be
achieved by the Fund in the future, in part because the past results are not
necessarily indicative of future results. In addition, the results presented
below may not necessarily equate with the return experienced by any particular
investor as a result of the timing of investments and redemptions, market
conditions and other factors. The effect of taxes on any investor will depend on
such person’s tax status, and the results have not been reduced to reflect any
income tax that may have been payable.
The
tables below shows the annual total returns for the Comparable Account, and a
broad-based securities market index for periods ended December 31.
TSW’s
Prior Performance of a Similar Account Relating to TSW High Yield Bond
Fund
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
Since Inception |
|
Comparable
Account (Net of Fees) |
|
|
(8.3 |
%) |
|
|
2.4 |
% |
|
|
4.6 |
% |
Comparable
Account (Gross of Fees) |
|
|
(8.0 |
%) |
|
|
2.8 |
% |
|
|
5.0 |
% |
ICE
Bank of America Merrill Lynch US High Yield BB‑B (Constrained 2%) |
|
|
(10.6 |
%) |
|
|
2.3 |
% |
|
|
5.0 |
% |
MANAGEMENT OF THE FUNDS
Investment
Adviser
JOHCM
(USA) Inc (“JOHCM USA” or the “Adviser”) serves as the investment adviser to the
Funds. Its principal place of business is 53 State Street, 13th Floor
Boston, MA, 02109. JOHCM USA is an indirect wholly owned subsidiary of Perpetual
Limited. Perpetual Limited is a diversified financial services company that has
been serving Australians since 1886. The Adviser is an investment adviser
registered with the SEC in the U.S. under the Investment Advisers Act of 1940,
as amended. As adviser to the Funds, subject to the Board of Trustees’
supervision, JOHCM USA continuously reviews, supervises, and administers each
Fund’s investment program. JOHCM USA also ensures compliance with each Fund’s
investment policies and guidelines. For its services, the Adviser is entitled to
a management fee, as set forth below, which is calculated daily and paid monthly
based on the average daily net assets of each Fund. As of September 30,
2022, JOHCM USA had approximately $12.3 billion in assets under
management.
104
Under
the Funds’ Investment Advisory Agreement, the Adviser is paid an annual
management fee from each Fund as follows:
|
| |
Fund |
|
Management Fee (as percentage of average
daily net assets) |
JOHCM
Credit Income Fund |
|
0.55% |
JOHCM
Emerging Markets Discovery Fund* |
|
1.30% |
JOHCM
Emerging Markets Opportunities Fund |
|
0.90% |
JOHCM
Global Income Builder Fund |
|
0.67% |
JOHCM
Global Select Fund |
|
0.89% |
JOHCM
International Opportunities Fund |
|
0.75% |
JOHCM
International Select Fund |
|
0.89% / 0.87%** |
Regnan
Global Equity Impact Solutions |
|
0.75% |
TSW
Emerging Markets Fund |
|
0.80% |
TSW
High Yield Bond Fund |
|
0.50% |
TSW
Large Cap Value Fund |
|
0.58% |
* |
Formerly,
JOHCM Emerging Markets Small Mid Cap Equity
Fund. |
** |
0.89%
of average daily net assets up to $15 billion; 0.87% of average daily
net assets in excess of $15 billion. |
A
discussion regarding the basis for the Board of Trustees’ approval of the
Investment Advisory Agreement between the Adviser and the Trust on behalf of the
Funds, is included in the Fund shareholder report for the period during which
the Board of Trustees approved the contract, except that, in the case of a new
Fund, a discussion of the basis of the Board of Trustees’ approval of the Fund’s
initial Investment Advisory Agreement is included in the Fund’s initial
shareholder report.
Participating
Affiliate Arrangements
JOHCM
USA has entered into a personnel-sharing arrangement with its United
Kingdom-based affiliate, J O Hambro Capital Management Limited, and with
its Singapore-based affiliate, JOHCM (Singapore) Pte. Limited (“JOH Singapore”).
Pursuant to this arrangement, certain employees of J O Hambro Capital Management
Limited and JOH Singapore, as “participating affiliates,” serve as “associated
persons” of JOHCM USA and, in this capacity, are subject to the oversight of
JOHCM USA and its Chief Compliance Officer. These associated persons will, on
behalf of JOHCM USA, provide discretionary investment management services
(including acting as portfolio managers), research and related services to the
Funds in accordance with the investment objectives, policies and limitations set
forth in the Prospectus and SAI. The personnel-sharing arrangement is based on
no‑action letters of the staff of the U.S. Securities and Exchange Commission
(the “SEC”) that permit SEC‑registered investment advisers to rely on and use
the resources of advisory affiliates, subject to certain conditions. While J O
Hambro Capital Management Limited is currently registered as an investment
adviser with the SEC, while acting as a participating affiliate of JOHCM USA,
its associated persons will be subject to the policies and procedures of JOHCM
USA. J O Hambro Capital Management Limited may in the future deregister as
an investment adviser in the US, but such deregistration would not affect the
participating affiliate arrangement through which it provides services to the
Funds. JOH Singapore is not registered as an investment adviser with the
SEC.
In
addition, trading personnel will be shared across the affiliates referenced
above, and execution of trades may be done by personnel employed by these
affiliated entities, in each case subject to the participating affiliate
arrangements described above. JOHCM USA expects to execute a substantial portion
of each JOHCM Fund’s trading orders through personnel and systems housed at J O
Hambro Capital Management Limited in the United Kingdom. The Adviser expects to
utilize this arrangement for JOHCM Funds which are otherwise managed by
portfolio management teams based in the United States.
105
Subadviser
The
Subadviser is located at 6641 W. Broad Street, Suite 600, Richmond, Virginia
23230, and serves as the subadviser for TSW Emerging Markets Fund, TSW High
Yield Bond Fund, and TSW Large Cap Value Fund. The Subadviser manages and
supervises the investment of TSW Emerging Markets Fund, TSW High Yield Bond
Fund, and TSW Large Cap Value Fund assets on a discretionary basis, subject to
oversight by the Board. The Subadviser has provided investment management
services to corporations, pensions and profit-sharing plans, 401(k) and thrift
plans, trusts, estates and other institutions and individuals since 1970. The
Subadviser is an indirect wholly owned subsidiary of Perpetual Limited. As of
September 30, 2022, the Subadviser had approximately $17.5 billion in
assets under management. As compensation for its services, the Adviser pays to
the Subadviser a monthly base fee for its services, subject to any applicable
reduction as described further in the Subadvisory Agreement and the
SAI.
Predecessor
Fund Recapture Arrangements
Under
the current Expense Limitation Agreement with the Trust and the Adviser, which
references previous investment advisory agreements between certain series of
Advisers Investment Trust, to which the Funds now serve as accounting successors
(each, a “Predecessor Fund,” and collectively, the “Predecessor Funds”), and J O
Hambro Capital Management Limited, an affiliate of the Adviser that served as
the investment adviser to each Predecessor Fund, J O Hambro Capital Management
Limited agreed to waive investment management fees and reimburse certain
Predecessor Funds for other expenses of the Predecessor Fund (including, but not
limited to, organizational and offering costs), to the extent necessary to limit
the total operating expenses of the Predecessor Funds (exclusive of brokerage
costs, interest, taxes, dividends, litigation and indemnification expenses,
expenses associated with the investments in underlying investment companies and
extraordinary expenses (as determined under generally accepted principles)). To
the extent that J O Hambro Capital Management Limited waived the investment
advisory fees and/or reimbursed the Predecessor Funds for such other ordinary
expenses, the Adviser may seek reimbursement of a portion or all such amounts
from the respective Funds into which those Predecessor Funds have merged at any
time within three fiscal years after the fiscal year in which such amounts were
waived or reimbursed. Any such recoupment may not cause any Fund’s ordinary
operating expenses to exceed the expense limitation that was in place with
respect to the relevant Predecessor Fund when the fees were waived or expenses
reimbursed. The Adviser will generally seek recoupment only in accordance with
the terms of any expense limitation that is in place with respect to the
relevant Fund at the time of recoupment.
As
of September 30, 2022, the following Funds are subject to recoupment by the
Adviser of fees previously waived or reimbursed by J O Hambro Capital Management
Limited and/or JOHCM (USA) Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fund
Name |
|
Amount Available for Recapture |
|
|
Amount
of Recapture expiring on September 30, 2025 |
|
|
Amount
of Recapture expiring on September 30, 2024 |
|
|
Amount
of Recapture expiring on September 30, 2023 |
|
JOHCM
Credit Income Fund |
|
$ |
181,585 |
|
|
$ |
98,309 |
|
|
$ |
72,620 |
|
|
$ |
10,656 |
|
JOHCM
Emerging Markets Discovery Fund* |
|
$ |
430,564 |
|
|
$ |
108,217 |
|
|
$ |
121,344 |
|
|
$ |
201,003 |
|
JOHCM
Global Income Builder Fund |
|
$ |
315,309 |
|
|
$ |
127,209 |
|
|
$ |
64,632 |
|
|
$ |
123,468 |
|
JOHCM
Global Select Fund |
|
$ |
26,536 |
|
|
$ |
26,536 |
|
|
|
N/A |
|
|
|
N/A |
|
JOHCM
International Opportunities Fund |
|
$ |
180,944 |
|
|
$ |
52,934 |
|
|
$ |
47,711 |
|
|
$ |
80,299 |
|
Regnan
Global Equity Impact Solutions** |
|
$ |
266,339 |
|
|
$ |
250,001 |
|
|
$ |
16,338 |
** |
|
|
N/A |
|
TSW
Emerging Markets Fund |
|
$ |
84,709 |
|
|
$ |
84,709 |
*** |
|
|
N/A |
|
|
|
N/A |
|
TSW
High Yield Bond Fund |
|
$ |
135,241 |
|
|
$ |
135,241 |
**** |
|
|
N/A |
|
|
|
N/A |
|
TSW
Large Cap Value Fund |
|
$ |
47,532 |
|
|
$ |
47,532 |
^ |
|
|
N/A |
|
|
|
N/A |
|
* |
Formerly,
JOHCM Emerging Markets Small Mid Cap Equity
Fund. |
** |
For
the period from August 23, 2021, commencement of operations, to
September 30, 2021. |
*** |
For
the period from December 21, 2021, commencement of operations, to
September 30, 2022. |
106
**** |
For
the period from October 26, 2021, commencement of operations, to
September 30, 2022. |
^ |
For
the period from December 6, 2021 to September 30,
2022. |
Portfolio
Management
The
Funds are managed using a team-based approach. Each of the Funds is managed
jointly and primarily by one or more investment professionals and may be
supported by analysts. The members of the Funds’ management teams, and the name
of the Fund for which each team member is responsible, are listed below.
Mohsin
Ahmad, CFA
Fund
Manager
Regnan Global Equity Impact Solutions
Mohsin
Ahmad joined JOHCM in April 2020. He previously was a senior analyst on the
Hermes Impact Opportunities Fund, having joined Hermes Investment Management in
2017. Prior to joining Hermes, he was an investment manager in Global Equities
at Pictet Asset Management. Mohsin was a generalist on the World Equities Fund
and covered energy and specialty chemicals sectors for the Global Major Players
Fund. During his time at Pictet, Mohsin worked in Geneva with thematic equity
funds including, Water, Clean Energy and Agriculture. Mohsin started his career
at Savills Commercial in London within Investment and European Valuations.
Mohsin holds a BA and MA in Land Economy from Cambridge University and is a CFA
charterholder.
William
M. Bellamy, CFA
Portfolio
Manager
TSW High Yield Bond Fund
William
M. Bellamy, CFA is the Director of Income Strategies and is responsible for
overseeing all fixed income management at the firm. He is the Portfolio Manager
for TSW’s Multi-Asset Income and Core Plus strategies.
William
began his career in the investment industry in 1987. Prior to joining TSW in
2002, he was a Portfolio Manager at Trusco Capital Management managing total
return oriented institutional accounts. Previously, William was a Vice President
of Institutional Fixed Income for First Union Capital Markets and Clayton
Brown & Associates, after beginning his career in Institutional Sales
and Trading at Merrill Lynch. He earned his undergraduate degree from Cornell
University and his MBA from The Fuqua School of Business at Duke University. He
holds the Chartered Financial Analyst® designation, is a member the
Richmond Society of Financial Analysts, and is registered as an Investment
Adviser Representative.
Emery
Brewer
Senior
Fund Manager
JOHCM Emerging Markets Discovery Fund
(formerly, JOHCM Emerging Markets Small Mid Cap Equity Fund)
Emery
Brewer is Senior Fund Manager of the J O Hambro Emerging Markets Small Cap
strategy and joined JOHCM in March 2010, following a brief retirement from 2008
to 2010. He has over 28 years of experience in Emerging Markets equity fund
management, gained while working at Driehaus Capital Management as well as at
JOHCM. In December 1997, Emery founded the Driehaus Capital Management Emerging
Markets Growth Fund which he managed for ten years until he left Driehaus in
December 2007. In 1998, he founded the Driehaus International Discovery Fund.
Prior to this, he was an analyst and manager for the Driehaus East Europe Fund.
Emery has a BSc in Economics from the University of Utah and a MBA from the
University of Rochester.
107
Giorgio
Caputo
Senior
Fund Manager
JOHCM Global Income Builder Fund
JOHCM Credit Income Fund
Giorgio
Caputo joined JOHCM USA in August 2017. Giorgio is a Senior Fund Manager and
Head of JOHCM’s Multi-Asset Value Team. Prior to joining JOHCM USA, he was most
recently a Portfolio Manager and Investment Analyst at First Eagle Investment
Management (“First Eagle”), where he co‑managed the First Eagle Global Income
Builder Fund. Prior to joining First Eagle in 2009, Giorgio was a Managing
Director and Industry Generalist Investment Analyst at JANA Partners LLC, a
value and event-driven hedge fund, and an Investment Banking Associate at Credit
Suisse First Boston. Before graduate school, he was a Quantitative Analyst and
the Interest Rate Trader for the Equity Derivatives Group at Lehman Brothers. He
has a BS in Operations Research, with minors in German Literature, Italian
Literature, and Applied and Computational Mathematics, from Princeton
University, as well as an MBA in Finance with Honours from Columbia Business
School. Giorgio speaks fluent German and Italian.
Ada
Chan
Fund
Manager
JOHCM Emerging Markets Opportunities Fund
Ada
Chan joined JOHCM in April 2011. Since May 2016, she has worked on the J O
Hambro Global Emerging Markets Opportunities team. Prior to joining JOHCM, Ada
spent three years at GMO LLC as an Investment Analyst. She previously worked at
Baring Asset Management as an Equity Research Analyst. Prior to 2000, she worked
as an International Management Trainee and Equity Research Intern at State
Street Corporation and Salomon Smith Barney, respectively. Ada holds an MSc in
Computer Information Systems and BA in Business Administration, both from Boston
University.
Tim
Crockford
Senior
Fund Manager
Regnan Global Equity Impact Solutions
Tim
Crockford joined JOHCM in June 2020. He previously managed the Hermes Impact
Opportunities Equity Fund from its launch in December 2017, having co‑founded
the Hermes Impact team in 2016. Tim joined Hermes Investment Management in 2009
as a research analyst for the European Equities team and became lead portfolio
manager of the ESG‑integrated Hermes Europe ex‑UK Equity Fund in 2015, which he
also managed until he left Hermes. Prior to joining Hermes, Tim was an analyst
at Sourcecap International, a European equity fund boutique, which Hermes
acquired in 2009. Before that, he was a primary research analyst at Execution
Limited (which seeded Sourcecap), where he worked on major projects in the
consumer, retail and financial services sectors. Tim was raised and educated in
Malta and graduated from the University of Malta in 2006 with a Bachelor of
Accountancy (Hons) degree, as well as a Bachelor of Commerce degree.
Bryan
F. Durand, CFA
Co‑Portfolio
Manager
TSW Large Cap Value Fund
Bryan
F. Durand, CFA, Co‑Portfolio Manager and Research Analyst, is in conjunction
with Mr. Hawkins, responsible for managing the Fund. Bryan initially joined
the Adviser in 2005 as an Equity Research Analyst and served in that role until
2008. He then served as a Senior Research Analyst at MFC Global Investment
Management from 2008-2010 and a Partner at Private Advisors, LLC from
2010-August 2017 before rejoining the Adviser in his current role in September
2017. Bryan graduated from the College of the Holy Cross and received his MBA
from Duke University, Fuqua School of Business.
108
Adam
Gittes
Senior
Fund Manager
JOHCM Global Income Builder Fund
JOHCM Credit Income Fund
Adam
is a Senior Fund Manager and Head of Credit for JOHCM’s Multi Asset Value team.
He was most recently employed as a Senior Investment Professional at Piney Lake
Capital, a hedge fund, where he focused on private credit and special situations
credit investing. Prior to Piney Lake, Adam was a Portfolio Manager at TOMS
Capital, a multi-billion dollar single family office, focusing on special
situation investments in both debt and equity markets. Before TOMS Capital, he
was a Vice President at BlackRock Kelso Capital. While there, he worked on the
formation of the firm’s liquid credit business. Prior to BlackRock Kelso
Capital, Adam was a senior analyst at RockView, a credit and event driven hedge
fund. While at RockView he researched and initiated investments across the
capital structure while focusing on fundamental value in unfollowed,
misunderstood, and complicated securities. Adam began his career in 2001 in the
Mergers and Acquisitions group at Credit Suisse First Boston.
Brett
P. Hawkins, CFA
TSW Large Cap Value Fund
Brett
P. Hawkins, CFA, Chief Investment Officer and Co‑Portfolio Manager, is primarily
responsible for managing the Fund. Brett also is a Co‑Portfolio Manager for
TSW’s Mid Cap Value strategy and a Portfolio Manager for TSW’s SMID Cap Value
strategy. He joined TSW in 2001 and has over 28 years of investment experience.
Prior to joining TSW, Brett was an Assistant Vice President of Equity Research
with First Union Securities and previously worked at Arthur Andersen LLP as an
Audit and Business Advisory Senior Associate. Brett graduated from the
University of Richmond and received his MBA from the University of Virginia,
Darden School.
Robert
Hordon, CFA
Senior
Fund Manager
JOHCM Global Income Builder Fund
Robert
Hordon joined JOHCM USA in October 2017. Robert is a Senior Fund Manager for
JOHCM’s Multi Asset team. Prior to joining JOHCM USA, he was most recently a
Portfolio Manager and Senior Analyst at First Eagle Investment Management, where
he co‑managed the First Eagle Global Income Builder Fund. He also was a Senior
Analyst in the First Eagle Global Value team which he joined in 2008. Robert has
a BA in Politics from Princeton University, with a Certificate in Political
Theory, and an MBA from Columbia Business School. He also holds the Chartered
Financial Analyst (CFA) designation.
Elliott
W. Jones, CFA
Portfolio
Manager
TSW Emerging Markets Fund
Elliott
W. Jones, CFA is the Portfolio Manager for the Emerging Markets team. Elliott
joined TSW as a research associate in 2012. He has been dedicated to non‑U.S.
strategies as a research analyst since 2015. Elliott is a graduate of University
of North Carolina, BA and Wake Forest University, MA. He previously worked for
Union First Market Bank as a Financial Services Advisor. He holds the Chartered
Financial Analyst®
designation.
Dr. Ivo
Kovachev
Senior
Fund Manager
JOHCM Emerging Markets Discovery Fund
(formerly, JOHCM Emerging Markets Small Mid Cap Equity Fund)
Dr. Ivo
Kovachev is Senior Fund Manager of JOHCM Emerging Small Cap Markets strategy and
joined JOHCM in March 2010. Prior to joining JOHCM, Ivo worked at Kinsale
Capital Management from 2005 to 2008, where
109
he
was Chief Investment Officer. Prior to this role, he spent ten years at Driehaus
Capital Management, from 1995 to 2005, most recently as Fund Manager for
Driehaus European Opportunity Fund. Together with Emery Brewer, Ivo co‑managed
the Driehaus International Discovery Fund from 2002 to 2005. During his tenure
with Driehaus Capital Management, he also contributed to the Emerging Markets
Growth investment process for many years. From 1995 to 1998, Ivo worked on and
then managed the Driehaus East Europe Fund. Ivo holds a MEng in Management
Information Systems from the Prague School of Economics, MSc in Technology and
Innovation Management from the University of Sussex. In addition, he holds a PhD
in Industrial and Development Policy. Ivo is also a Fulbright Scholar, having
attended the Thunderbird School of Global Management in Arizona (USA).
Robert
Lancastle, CFA
Senior
Fund Manager
JOHCM International Opportunities Fund
Robert
Lancastle joined JOHCM in February 2012 and is the Senior Fund Manager of the J
O Hambro Global Opportunities strategy (which launched in Q2 2012) and the J O
Hambro International Opportunities strategy (which launched in Q3 2016). Prior
to joining JOHCM, Robert worked for Orbis Investment Advisory from 2008 to 2012
as an Equity Analyst for the Orbis Global Equity strategy, focused on the
retail, media, technology, oil & gas, and insurance sectors.
Previously, Robert worked as a math and physics teacher at Wellington College.
Robert holds a BEng and MEng from Cambridge University and is a CFA
charterholder.
Christopher
J.D. Lees, CFA
Senior
Fund Manager
JOHCM Global Select Fund
JOHCM International Select Fund
Christopher
Lees joined JOHCM in September 2008. Christopher is the Senior Fund Manager for
the Funds’ Global and EAFE strategies. Before deciding to join JOHCM,
Christopher spent more than 19 years at Baring Asset Management, most recently
as Head of the firm’s Global Sector Teams. In addition to this role, Chris was
Baring’s Lead Global High Alpha Manager and Lead Manager for the EAFE
portfolios. Previously, he held positions as Senior Portfolio Manager, US Equity
Team in Boston and as an Analyst in the UK Stock Selection as well as the firm’s
Global Asset Allocation team. Chris is a CFA charterholder and holds a BSc with
Honours in Geography from London University, England and has lived and worked in
the US, Europe, and Asia.
Stephen
Lew, CFA
Senior
Fund Manager
JOHCM Emerging Markets Discovery Fund
(formerly, JOHCM Emerging Markets Small Mid Cap Equity Fund)
Stephen
Lew joined JOHCM in September 2013 and is Senior Fund Manager of the J O Hambro
Emerging Markets Small Cap strategy. He has over 15 years’ experience in
Emerging Markets equity fund management. Prior to joining JOHCM, from 2010 to
2012, Stephen was a Senior Portfolio Manager for Artio Global Investors. At
Artio, he was responsible for managing the Asia ex‑Japan sleeve of Artio
International Equity Fund, Artio International Equity Fund II, and separately
managed accounts. From 2005 to 2010, Stephen was the Senior Asia ex‑Japan
Analyst at Janus Capital Group. Between 1999 and 2005 he worked at Driehaus
Capital Management along-side Emery Brewer and Ivo Kovachev as the Asia ex‑Japan
Analyst. Stephen has a BA in Business Economics and Japanese from the University
of California, an MBA with concentration in Finance from the University of
Chicago, Graduate School of Business and a CFA charterholder. He is a native
Mandarin and conversational Japanese speaker.
110
Ben
Leyland, CFA
Senior
Fund Manager
JOHCM International Opportunities Fund
Ben
Leyland joined JOHCM in April 2006 as an analyst and was subsequently promoted
to Fund Manager for the JOHCM UK Opportunities Fund. Since 2012, Ben has been
the Senior Fund Manager of the J O Hambro Global Opportunities and since 2016.
The Senior Fund Manager of the J O Hambro International Opportunities strategy.
He was previously at Schroder Investment Management as a financial analyst in
their Pan‑European equity research department. Ben is a CFA charterholder and
holds a MA (Hons) in History from the University of Cambridge. He was vote one
of Financial News’s 40 under 40 Rising Stars in Asset Management,
2015.
Nudgem
Richyal, CFA
Senior
Fund Manager
JOHCM Global Select Fund
JOHCM International Select Fund
Nudgem
Richyal joined JOHCM in June 2008. Nudgem is a Senior Fund Manager for the
Funds’ Global and EAFE strategies. Additionally, Nudgem is the Senior Fund
Manager for JOHCM’s Global Sharia Compliant Equity Strategy. Prior to joining
JOHCM, Nudgem spent more than seven years at Baring Asset Management (working
closely with Christopher Lees), as an Investment Director within the Global
Equity Group and investment manager of one of the largest Latin American funds
in London (US $1.25 billion as of February, 2008). Further responsibilities
included the construction of a soft commodities portfolio and the development of
global sector strategies. Before Baring, he worked at Hill Samuel Asset
Management London for one year. Nudgem is a CFA charterholder and holds a First
Class BSc Honours Degree in Chemistry from the University of Manchester,
England.
James
Syme, CFA
Senior
Fund Manager
JOHCM Emerging Markets Opportunities Fund
James
Syme joined JOHCM in May 2011. James is Senior Fund Manager for the J O Hambro
Global Emerging Markets Opportunities strategy. Prior to joining JOHCM, James
spent five years at Baring Asset Management (“Baring”) as the Head of Global
Emerging Market Equities. At Baring, he and his colleague Paul Wimborne managed
the Baring Global Emerging Markets Fund and thirteen other funds and segregated
mandates with peak assets under management of over $4 billion. James
previously worked at SG Asset Management for nine years as a portfolio manager
and as Head of Global Emerging Markets. Previously, James was a portfolio
manager at Henderson Investors and an analyst at H Clarkson. James is a CFA
charterholder and holds a BA Honours Degree in Geography from the University of
Cambridge, England.
Paul
Wimborne
Senior
Fund Manager
JOHCM Emerging Markets Opportunities Fund
Paul
Wimborne joined JOHCM in April 2011. Paul is Fund Manager for the J O Hambro
Global Emerging Markets Opportunities strategy. Prior to joining JOHCM, Paul
spent over four years at Baring Asset Management (“Baring”) as an investment
manager in the Global Emerging Markets team led by James Syme. At Baring, Paul
was lead or deputy manager for fourteen emerging markets mandates with peak
assets under management of over $4 billion. He previously worked at Insight
Investment for three years as a fund manager in the Emerging Markets &
Asia team and for five years in the Emerging Markets team at Rothschild Asset
Management. Paul holds a BSc Honours Degree in Management and Chemical Sciences
from the University of Manchester Institute of Science and Technology, England
and is an affiliate member of the CFA.
111
The
SAI provides information about the portfolio managers’ compensation, other
accounts managed by the portfolio managers and the portfolio managers’ ownership
of Fund shares.
Administrator,
Transfer Agent, Custodian, and Distributor
The
Northern Trust Company, 50 South LaSalle Street, Chicago, Illinois 60603, serves
as the Funds’ Administrator and Fund Accounting Agent, Transfer Agent, and
Custodian. The Funds intend to enter into a distribution agreement with JOHCM
Funds Distributors, LLC (the “Distributor”), 3 Canal Plaza, Suite 100, Portland,
Maine 04101, to distribute shares of the Funds.
YOUR ACCOUNT
Pricing
Your Shares
When
you buy and sell shares of a Fund, the price of the shares is based on the
Fund’s net asset value per share (“NAV”) next determined after the order is
received.
Calculating the Fund’s NAV
The
NAV is calculated at the close of trading of the NYSE, normally 4:00 p.m.
Eastern time (“ET”)/3:00 p.m. Central time (“CT”), on each day that the NYSE is
open for business. The NYSE is closed on the following days: Saturdays and
Sundays; U.S. national holidays including New Year’s Day, Martin Luther
King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth
National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day. Your order to purchase or sell shares is priced at the next
NAV calculated after your order is received and deemed to be in good order by
the Funds’ Transfer Agent or a financial intermediary. Only purchase orders
received and deemed to be in good order by the Funds’ Transfer Agent before
4:00 p.m. ET/3:00 p.m. CT will be effective at that day’s NAV. On
occasion, the NYSE will close before 4:00 p.m. ET/3:00 p.m. CT. When that
happens, purchase requests received by the Funds or a financial intermediary
after the NYSE closes will be effective the following Business Day. The NAV of a
Fund may change every day.
A
purchase, redemption, or exchange request is considered to be “in good order”
when all necessary information is provided and all required documents are
properly completed, signed, and delivered. Requests must include the
following:
|
• |
|
The
account number (if issued) and Fund name; |
|
• |
|
The
amount of the transaction, in dollar amount or number of
shares; |
|
• |
|
For
redemptions and exchanges (other than telephone or wire redemptions), the
signature of all account owners exactly as they are registered on the
account; |
|
• |
|
Required
signature guarantees, if applicable; and |
|
• |
|
Other
supporting legal documents and certified resolutions that might be
required in the case of estates, corporations, trusts and other entities
or forms of ownership. Call 866‑260‑9549 (toll free) or 312‑557‑5913 for
more information about documentation that may be required of these
entities. |
Additionally,
a purchase order initiating the opening of an account is not considered to be in
“good order” unless you have provided all information required by the Funds’
“Customer Identification Program” as described below.
Valuing the Funds’ Assets
The
market value of a Fund’s investments is determined primarily on the basis of
readily available market quotations. Each Fund generally uses pricing services
to determine the market value of securities.
112
Non‑U.S.
securities, currencies, and other assets and liabilities denominated in non‑U.S.
currencies are translated into U.S. dollars at the prevailing exchange rate of
such currencies against the U.S. dollar as provided by an approved
independent pricing service.
In
compliance with Rule 2a‑5 of the 1940 Act, the Board has designated the Adviser
as the Funds’ “valuation designee” with responsibility for establishing fair
value when the price of a security is not readily available or deemed
unreliable. The Adviser, in its role as the valuation designee, has established
an internal committee (the “Committee”) comprised of select officers and staff
of the Adviser to discharge its responsibilities under the Trust’s valuation
procedures (the “Valuation Procedures”).
If
market quotations for a security are not available or market quotations or a
price provided by a pricing service do not reflect fair value, or if an event
occurs after the close of trading on the domestic or non‑U.S. exchange or market
on which the security is principally traded (but prior to the time the NAV is
calculated) that materially affects fair value, the Adviser, as valuation
designee, will value a Fund’s assets at their fair value according to the
Valuation Procedures approved by the Board of Trustees. For example, if trading
in a portfolio security is halted and does not resume before a Fund calculates
its NAV, such security’s fair value will be determined by the Adviser using the
Procedures, subject to oversight by the Board of Trustees.
In
addition, fair value pricing may be used if events materially affecting the
value of non‑U.S. securities occur between the time when the exchange on which
they are traded closes and the time when the NAV is calculated. The Fund
identifies possible fluctuations in international securities by monitoring the
increase or decrease in the value of a designated benchmark index. In the event
of an increase or decrease greater than predetermined levels, a Fund may use a
systematic valuation model provided by a third-party pricing service to fair
value its international equity securities.
Without
a fair value price, short-term investors could take advantage of the arbitrage
opportunity and dilute the NAV of long-term investors. Non‑U.S. markets in which
a Fund buys securities may be open on days the U.S. markets are closed, causing
a Fund’s NAV to change even though the Fund is closed. On days when the U.S.
markets are closed, a Fund’s shareholders will not be able to purchase or sell
Fund shares. While fair valuation of a Fund’s portfolio securities can serve to
reduce arbitrage opportunities, there is no assurance that fair value pricing
policies will prevent dilution of the NAV by short-term investors. Fair
valuation involves subjective judgments, and it is possible that the fair value
determined for a security may differ materially from the value that could be
realized upon the sale of the security.
How
to Purchase Shares
Shares
of the Funds have not been registered for sale outside of the United States.
This prospectus is not intended for distribution to prospective investors
outside of the United States. The Funds generally do not market or sell shares
to investors domiciled outside of the United States, even if the investors are
citizens or lawful permanent residents of the United States. Any non‑U.S.
shareholders generally would be subject to U.S. tax withholding on distributions
by the Funds. This prospectus does not address in detail the tax consequences
affecting any shareholder who is a nonresident alien individual or a non‑U.S.
trust or estate, corporation, or partnership. Investment in the Funds by
non‑U.S. investors may be permitted on a case‑by‑case basis, at the sole
discretion of the Funds.
You
may purchase shares directly from the Funds or through your broker or financial
intermediary on any day the NYSE is open, subject to certain restrictions
described below. Purchase requests received in good order by the Funds’ Transfer
Agent or a financial intermediary before 4:00 p.m. ET/3:00 p.m. CT (or before
the close of the NYSE) will be effective at that day’s share price. Purchase
requests received in good order by the Funds or a financial intermediary after
the close of trading on the NYSE are processed at the share price determined on
the following Business Day. You may invest any amount you choose, as often as
you wish, subject to the minimum initial and minimum additional investment as
stated in this prospectus. The Funds may
113
accept
initial investments smaller than the minimum initial investment amounts from
eligible retirement account investors and in connection with the Funds’
participation in third-party distribution platforms and in certain other
instances at their discretion.
Share Classes
The
Funds offer multiple share classes. Each Fund offers four classes of shares
through this Prospectus: Institutional, Advisor, Investor and Z Shares. Each
class of shares of each Fund has the same investment objective and investments,
but the different share classes have different expense structures and
eligibility requirements. Your financial intermediary can help you determine
which share class to purchase. You should choose a share class for which you are
eligible, with the expense structure that best meets your needs.
The
principal differences among the classes are as follows:
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
Advisor |
|
Investor |
|
Class Z |
Minimum
Initial Investment |
|
$1,000,000 |
|
None |
|
None |
|
$10,000,000 |
Minimum
Subsequent Investment |
|
None |
|
None |
|
None |
|
None |
Sub‑
Accounting/Sub‑ Transfer Agency Expenses |
|
Yes. Expenses may vary depending on the
arrangements with financial intermediaries that offer Fund shares.
Expenses are incurred pursuant to “fee for service” arrangements with
financial intermediaries. |
|
None |
|
None |
|
None |
Distribution
(Rule 12b‑1) Fees |
|
None |
|
0.10% |
|
0.25% |
|
None |
Sales
Charge (Load) |
|
None |
|
None |
|
None |
|
None |
Redemption
Fees |
|
None |
|
None |
|
None |
|
None |
Institutional Shares of the Funds are primarily
for institutional investors investing for their own or their customers’
accounts, and for investments made though financial institutions or
intermediaries that typically require sub‑accounting, sub‑transfer agency,
shareholder services payments and/or recordkeeping payments from the Fund for
some or all of their underlying investors (“sub‑transfer agency fees”).
Institutional Shares are expected to bear certain expenses associated with
sub‑transfer agency fees, which amounts may vary between the Funds. The minimum
initial investment for Institutional Shares is $1,000,000. If you purchase
Institutional Shares, you will not pay a sales charge at the time of purchase
and you will not pay a 12b‑1 fee. The Adviser, and, from time to time,
affiliates of the Adviser may also, at their own expense and out of their own
resources, provide additional cash payments to financial intermediaries who sell
shares of the Funds.
Your
financial intermediary can help you determine whether you are eligible to
purchase Institutional Shares. Eligible Institutional Share investors primarily
include:
|
• |
|
individuals
and institutional investors with a minimum initial investment of
$1,000,000; |
|
• |
|
employer
sponsored retirement plans, pooled investment vehicles, clients of
financial institutions or intermediaries which charge such clients a fee
for advisory, investment consulting, or similar services or have entered
into an agreement with the Funds or the Distributor to offer such shares
though an investment platform; |
|
• |
|
clients
of trust companies where the trust company is acting in fiduciary
capacity, as agent, or as custodian. |
|
• |
|
investors
through certain brokerage platforms in which an investor transacting
through a broker may be required to pay commission and/or other forms of
compensation to the broker; |
114
|
• |
|
officers,
trustees, and employees, and their immediate family members (i.e.,
spouses, children, grandchildren, parents, grandparents, and any dependent
of the person, as defined in Section 152 of the Internal Revenue Code
of 1986, as amended (the “Code”)), of the Funds and the Adviser, and its
subsidiaries and affiliates; |
|
• |
|
Any
trust or plan established as part of a qualified tuition program under
Section 529 of the Code, if a contract exists between the Distributor
and/or its affiliates and the state sponsor of the program or one of its
service providers, to provide the program: |
|
• |
|
services
relating to operating the program; and/or |
|
• |
|
Fund
shares for purchase which require sub‑transfer agency fees from the
Fund. |
|
• |
|
Advisory
programs where the shares are acquired on behalf of program participants
in connection with a comprehensive fee or other advisory fee arrangement
between the program participant and a registered broker dealer or
investment adviser, trust company, bank, family office, or multi-family
office (referred to as the “Sponsor”) on behalf of program participants
if: |
|
• |
|
the
program participant pays the Sponsor a fee for investment advisory or
related services, under a comprehensive fee or other advisory fee
arrangement; and |
|
• |
|
the
Sponsor or the broker-dealer through which the Fund’s shares are acquired
has an agreement with the Distributor. |
|
• |
|
Other
investors for which the Fund or the Distributor has pre‑approved the
purchase. |
Advisor Shares of the Funds are primarily for
certain individual investors, investments made through financial institutions or
intermediaries and institutional investors investing for their own or their
customers’ accounts. There is no minimum investment amount required for Advisor
Shares. If you purchase Advisor Shares of the Funds, you will not pay a sales
charge at the time of purchase or sub‑transfer agency fees, but you will pay a
12b‑1 fee not exceeding ten basis points (0.10%) of each Fund’s average daily
net assets. Your financial intermediary can help you determine if you are
eligible to purchase Advisor shares. The Adviser, and, from time to time,
affiliates of the Adviser may also, at their own expense and out of their own
resources, provide additional cash payments to financial intermediaries who sell
shares of the Funds.
Investor Shares of the Funds are primarily for
certain individual investors and investments made through financial institutions
or intermediaries. There is no minimum investment amount required for Investor
Shares. If you purchase Investor Shares of the Funds, you will not pay a sales
charge at the time of purchase or sub‑transfer agency fees, but you will pay a
12b‑1 fee not exceeding twenty-five basis points (0.25%) of a Fund’s average
daily net assets. Your financial intermediary can help you determine if you are
eligible to purchase Investor shares. The Adviser, and, from time to time,
affiliates of the Adviser may also, at their own expense and out of their own
resources, provide additional cash payments to financial intermediaries who sell
shares of the Funds.
Class Z
Shares of the Funds require a minimum initial investment of $10,000,000.
If you purchase Class Z Shares, you will not pay a sales charge at the time
of purchase, a 12b‑1 fee or sub‑transfer agency fee. The Adviser, and, from time
to time, affiliates of the Adviser may also, at their own expense and out of
their own resources, provide additional cash payments to financial
intermediaries who sell shares of the Funds.
The
following categories of investors and accounts may buy Class Z Shares of
each Fund, provided that they do not require or receive sub‑accounting or
recordkeeping payments from the Fund:
|
• |
|
Institutional
investors, including, but not limited to, employer-sponsored retirement
plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs), endowments,
foundations, insurance company general accounts, insurance company
separate accounts, local, city, and state governmental institutions, and
other tax‑exempt entities that meet the requirements for qualification
under Section 501 of the Code. |
115
|
• |
|
Unaffiliated
U.S. registered mutual funds including those that operate as “fund of
funds,” collective trust funds, investment companies or other pooled
investment vehicles. |
|
• |
|
Other
investors for which the Fund or the Adviser has pre‑approved the
purchase. |
The
following categories of investors and accounts qualify to buy Class Z
Shares of each Fund but the $10 million investment minimum is waived:
|
• |
|
Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs) that
invest through a record-keeper or third party retirement
platform. |
|
• |
|
Advisory
programs where the shares are acquired on behalf of program participants
in connection with a comprehensive fee or other advisory fee arrangement
between the program participant and a registered broker dealer or
investment adviser, trust company, bank, family office, or multi-family
office (referred to as the “Sponsor”) on behalf of program participants
if: |
|
• |
|
the
program participant pays the Sponsor a fee for investment advisory or
related services, under a comprehensive fee or other advisory fee
arrangement; and |
|
• |
|
the
Sponsor or the broker-dealer through which the Fund’s shares are acquired
has an agreement with the Distributor. |
|
• |
|
Any
trust or plan established as part of a qualified tuition program under
Section 529 of the Code, if a contract exists between the Distributor
and/or its affiliates and the state sponsor of the program or one of its
service providers, to provide the program: |
|
• |
|
services
relating to operating the program; and/or |
|
• |
|
Fund
shares for purchase which require sub‑transfer agency fees from the
Fund. |
|
• |
|
Clients
(other than defined contribution employer sponsored retirement plans) of
an institutional consultant where (a) the consultant has undertaken
to provide certain services directly to the client with respect to the
client’s investment in the Fund and (b) the Fund or the Distributor
has notified that consultant in writing that the proposed investment is
permissible. |
|
• |
|
Investment
companies or other pooled vehicles that are managed by the Adviser or its
affiliates. |
|
• |
|
Officers,
trustees, and employees, and their immediate family members (i.e.,
spouses, children, grandchildren, parents, grandparents, and any dependent
of the person, as defined in Section 152 of the Code, of the Funds
and the Adviser, and its subsidiaries and
affiliates. |
|
• |
|
Existing
institutional separate account clients of the Adviser or its
affiliates. |
|
• |
|
Investors
for whom the Fund or the Adviser determines that a strategic reason exists
for such a waiver. |
|
• |
|
Investors
with an account which the Fund or the Adviser believes will grow to meet
the investment minimum in the future. |
The
Funds reserve the right to modify or waive the eligibility requirements and
investment minimums at any time.
Customer Identification Program: Important
Information About Procedures for Opening an Account
Federal
law requires all financial institutions to obtain, verify, and record
information that identifies each person who opens an account. When you open an
account, the Funds will ask for your name, residential address, date of birth,
government identification number, and other information that will allow us to
identify you. For legal entity customers, we will also ask that any
individual(s) who, directly or indirectly, owns 25% or more of the entity and
one individual who has significant responsibility to control, manage, or direct
the legal entity be identified. The Funds also may ask to see your driver’s
license or other identifying documents.
116
If
we do not receive the required information, there may be a delay in processing
your investment request, which could subject your investment to market risk. If
we are unable to immediately verify your identity, the Funds may restrict
further investment until your identity is verified. Once the Funds are able to
verify your identity, your investment will be accepted and processed at the next
determined NAV. However, if we are unable to verify your identity, each Fund
reserves the right to close your account without notice and return your
investment to you at the NAV determined on the day in which your account is
liquidated. If we close your account because we are unable to verify your
identity, your investment will be subject to market fluctuation, which could
result in a loss of a portion of your principal investment. If your account is
closed at the request of governmental or law enforcement authorities, the Funds
may be required by the authorities to withhold the proceeds.
Purchases Through Financial Intermediaries
You
may make initial and subsequent purchases of shares of the Funds through a
financial intermediary, such as an investment adviser or broker-dealer, bank, or
other financial institution that purchases shares for its customers. The Funds
may authorize certain financial intermediaries to receive purchase and sale
orders on its behalf. Before investing in the Funds through a financial
intermediary, you should read carefully any materials provided by the
intermediary together with this prospectus.
When
shares are purchased this way, the financial intermediary may:
|
• |
|
charge
a fee for its services; |
|
• |
|
act
as the shareholder of record of the shares; |
|
• |
|
set
different minimum initial and additional investment
requirements; |
|
• |
|
impose
other charges, commissions, or restrictions; |
|
• |
|
designate
intermediaries to accept purchase and sale orders on the Funds’ behalf;
or |
|
• |
|
impose
an earlier cut‑off time for purchase and redemption
requests. |
Each
Fund considers a purchase or sale order as received when a financial
intermediary receives the order in proper form before 4:00 p.m. ET/3:00 p.m. CT
(or before the NYSE closes, if it closes before 4:00 p.m. ET/3:00 p.m. CT).
These orders will be priced based on the Fund’s NAV next computed after such
order is received by the financial intermediary.
Shares
held through an intermediary may be transferred into your name following
procedures established by your intermediary and the Funds. Certain
intermediaries may receive compensation from the Funds, the Adviser, or their
affiliates.
Compensation to Financial Intermediaries
It
is expected that Institutional Class, Advisor Class, Investor Class and
Class Z shares of the Funds will make payments, or reimburse the Adviser or
its affiliates for payments they make, to financial intermediaries that provide
certain administrative, recordkeeping, and account maintenance services
(sometimes referred to as “sub‑transfer agency” or “sub‑TA” services). The
amount of such payments and/or reimbursement is subject to the caps established
by the Board and is reviewed by the Trustees periodically.
Although
the nature and extent of sub‑transfer agency services provided to shareholders
and the amount of sub‑transfer agency fees charged to each class will vary among
financial intermediaries, Institutional Class, Advisor Class, Investor
Class and Class Z shares each bear sub‑accounting expenses on a
class-wide basis. This means that the sub‑transfer agency fees you bear as a
Fund shareholder may be greater than the sub‑transfer agency fees charged by
your financial intermediary to the Fund with respect to your investment. Advisor
Class
117
and
Investor Class shares may make sub‑transfer agency payments out of amounts
authorized under distribution plans to be adopted pursuant to Rule 12b‑1 under
the Investment Company Act of 1940.
The
Adviser also may, at its own expense and out of its own profits, provide
additional cash payments to financial intermediaries for sub‑transfer agency
services they provide to their clients or customers hold shares of the Fund.
Payments generally are based on either: (1) a percentage of the average
daily net assets of clients serviced by such financial intermediary, or
(2) the number of accounts serviced by such financial intermediary. These
additional cash payments also may be made as an expense reimbursement.
Additional
information concerning payments the Fund, the Adviser or their affiliates may
make to financial intermediaries, and the services provided by financial
intermediaries, can be found in the SAI under “Payments to Financial
Intermediaries.”
Fund Direct Purchases
You
also may open a shareholder account directly with the Funds. You can obtain a
copy of the New Account Application by calling the Funds at 866‑260‑9549 (toll
free) or 312‑557‑5913 on days the Funds are open for business. You may invest in
the following ways:
By Wire
To
Open a New Account:
|
• |
|
Complete
a New Account Application and send it to: |
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
IL 60680-4766
Telephone:
866‑260‑9549 (toll free) or 312‑557‑5913
Overnight Address:
JOHCM
Funds Trust
c/o
The Northern Trust Company
333
South Wabash Avenue
Attn:
Funds Center, Floor 38 Chicago, IL 60604
|
• |
|
You
must also call 866‑260‑9549 (toll free) or 312‑557‑5913 on days the Funds
are open for business to place an initial purchase via phone or provide an
initial purchase Letter of Instruction. |
|
• |
|
Wire
funds for your purchase. A wire will be considered made when the money is
received and the purchase is accepted by the Funds. Any delays that may
occur in receiving money, including delays that may occur in processing by
the bank, are not the responsibility of the Funds or the Transfer Agent.
Wires must be received prior to 4:00 pm ET to receive the current day’s
NAV. |
|
• |
|
Only
the listed street address should be used for overnight delivery, and not
the P.O. Box address. Please note that receipt by the US Post Office does
not constitute delivery to or receipt by the Funds or the Transfer
Agent. |
To
Add to an Existing Account:
|
• |
|
Call
866‑260‑9549 (toll free) or 312‑557‑5913 on days the Funds are open for
business or provide a subsequent purchase Letter of
Instruction. |
118
|
• |
|
Have
your bank wire federal funds or effect an ACH transfer
to: |
The
Northern Trust Company
Chicago,
Illinois
ABA
Routing No. 0710-00152
Northern
Trust Account #5201682900
Shareholder
Account #JOH1056 (ex. JOH10561234567)
Shareholder
Name:
By Directed Reinvestment
Your
dividend and capital gain distributions will be automatically reinvested unless
you indicate otherwise on your application.
|
• |
|
Complete
the “Choose Your Dividend and Capital Gain Distributions” section on the
New Account Application. |
|
• |
|
Reinvestments
can only be directed to an existing Fund
account. |
Other
Purchase Information
The
Funds reserve the right to limit the amount of purchases and to refuse to sell
to any person or intermediary. If your wire does not clear, you will be
responsible for any loss incurred by a Fund. If you are already a Fund
shareholder, the Fund reserves the right to redeem shares from any identically
registered account in the Fund as reimbursement for any loss incurred or money
owed to the Fund. You also may be prohibited or restricted from making future
purchases in the Funds.
Lost
Shareholders, Inactive Accounts, and Unclaimed Property
It
is important that the Funds maintain a correct address for each shareholder. An
incorrect address may cause a shareholder’s account statements and other
mailings to be returned to the Funds. Based upon statutory requirements for
returned mail, the Funds will attempt to locate the shareholder or rightful
owner of the account. If the Funds are unable to locate the shareholder, then
they will determine whether the shareholder’s account can legally be considered
abandoned. Your mutual fund account may be transferred to the state government
of your state of residence if no activity occurs within your account during the
“inactivity period” specified in your state’s abandoned property laws. The Funds
are legally obligated to escheat (or transfer) abandoned property to the
appropriate state’s unclaimed property administrator in accordance with
statutory requirements. The shareholder’s last known address of record
determines which state has jurisdiction. Please proactively contact the Transfer
Agent at 1‑866‑260‑9549 (toll free) or 312‑557‑5913 at least annually to ensure
your account remains in active status.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer Agent if
you wish to complete a Texas Designation of Representative form.
Information
Regarding Purchases of the JOHCM International Select Fund
The
JOHCM International Select Fund is publicly offered on a limited basis only. The
following groups are permitted to continue to purchase shares of each
Fund:
|
• |
|
Shareholders
of record of the Fund as of the Closing Date are able to continue to
purchase additional shares in their existing Fund accounts either directly
through the Fund or through a financial intermediary and may continue to
reinvest dividends or capital gains distributions from shares owned in the
Fund. |
119
|
• |
|
Group
employer benefit plans, including 401(k), 403(b), 457 plans, and health
savings account programs (and their successor, related, and affiliated
plans), which have the Fund available to participants on or before the
Closing Date, may continue to open accounts for new participants in the
Fund and purchase additional shares in existing participant accounts. New
group employer benefit plans, including 401(k), 403(b), and 457 plans, and
health savings account programs (and their successor, related, and
affiliated plans), may also establish new accounts with the Fund, provided
the new plans have approved and selected the Fund as an investment option
by the Closing Date and the plan has also been accepted for investment by
the Fund by the Closing Date. |
|
• |
|
Approved
fee‑based advisory programs may continue to utilize the Fund for new and
existing program accounts. The program sponsors must be accepted for
investment by the Fund by the Closing Date. |
|
• |
|
Approved
brokerage platforms where the Fund is included on the sponsor platform may
continue to utilize the Fund for new and existing program accounts. The
brokerage platforms must have been accepted for continued investment by
the Fund by the Closing Date. |
|
• |
|
Existing
independent wealth management (IWM) firms and bank trust companies that
have a client investment in the Fund at the time of the Closing Date can
continue to add new clients, purchase shares, and exchange into the Fund.
The Fund will not be available to new IWM and bank trust companies that do
not have a position in the Fund at the time of the Closing
Date. |
|
• |
|
Fund
of mutual fund sponsors that have an investment in the Fund as of the
Closing Date can continue to purchase shares of the
Fund. |
|
• |
|
Certain
financial intermediaries with whom the Adviser has a relationship,
provided that, in the judgment of JOHCM Funds Trust, the proposed
investment in the Fund would not adversely affect the Adviser’s ability to
manage the Fund effectively. |
|
• |
|
An
institutional consulting firm that has previously directed client assets
into the Fund may be allowed to recommend the Fund to its new and existing
clients who may in turn purchase shares of the Fund, provided that, in the
judgment of JOHCM Funds Trust, the proposed investment in the Fund would
not adversely affect the Adviser’s ability to manage the Fund
effectively. |
|
• |
|
Board
of Trustees and persons affiliated with the Fund’s investment adviser and
their immediate families would be able to purchase shares of the Fund and
establish new positions. |
In
general, the Fund will rely on a financial intermediary to prevent a new account
from being opened within an omnibus account established at that financial
intermediary if the account would not otherwise satisfy the conditions outlined
above. The Fund’s ability to monitor new accounts that are opened through
omnibus accounts or other nominee accounts is limited and the ability to limit a
new account to those that meet the above criteria with respect to financial
intermediaries may vary depending upon the capabilities of those financial
intermediaries.
Investors
may be asked to verify that they meet one of the exceptions above prior to
opening a new account in the Fund. The Fund may permit you to open a new account
if the Fund reasonably believe that you are eligible. If a shareholder opens a
new account in the Fund and is later determined to be ineligible for investment,
the Fund reserves the right to redeem the shares at their original NAV. The Fund
also may decline to permit you to open a new account if the Fund believes that
doing so would be in the best interests of either the Fund or its shareholders,
even if you would be eligible to open a new account under these
exceptions.
If
all shares of the Fund in an existing account are redeemed, the shareholder’s
account will be closed. Such former shareholders will not be able to buy
additional shares of either Fund or reopen their account.
The
Fund reserves the right to make additional exceptions or otherwise modify the
foregoing closure policy at any time.
120
How
to Redeem Shares
You
may redeem all or part of your investment in a Fund on any day the NYSE is open,
subject to certain restrictions described below. Redemption requests received by
the Funds’ Transfer Agent or a financial intermediary before 4:00 p.m. ET/3:00
p.m. CT (or before the NYSE closes if it closes before 4:00 p.m.
ET/3:00 p.m. CT) will be effective that day. Redemption requests received
by the Funds’ Transfer Agent or a financial intermediary after the close of
trading on the NYSE are processed at the NAV determined on the following
Business Day.
The
price you will receive when you redeem your shares will be the NAV next
determined after the Funds receive your properly completed order to sell. You
may receive proceeds from the sale by check, bank wire transfer, or direct
deposit into your bank account and in certain cases, payment may be made in
securities of a Fund as described in “Additional Information About Redemptions”.
Redemptions in‑kind are typically used to meet redemption requests that
represent a large percentage of a fund’s net assets in order to minimize the
effect of large redemptions on the fund and its remaining shareholders.
Redemptions in‑kind may be used regularly in circumstances as described above,
and may also be used in stressed market conditions. Redemption‑in‑kind proceeds
are limited to securities that are traded on a public securities market or are
limited to securities for which quoted bid and ask prices are available. They
are distributed based on a weighted-average pro‑rata basis of a Fund’s holdings
to the redeeming shareholder. Each Fund typically expects that it will take one
to three days following the receipt of your redemption request to pay out
redemption proceeds; however, while not expected, payment of redemption proceeds
may take up to seven days. The proceeds may be more or less than the purchase
price of your shares, depending on the market value of the Fund’s securities at
the time your redemption request is received. A financial intermediary may
charge a transaction fee to redeem shares. In the event that a wire transfer is
impossible or impractical, the redemption check will be sent by mail to the
designated account. The Funds typically expect to hold cash or cash equivalents
to meet redemption requests. A Fund also may use the proceeds from the sale of
portfolio securities to meet redemption requests if consistent with the
management of the Fund. These redemption methods will be used regularly and may
also be used in stressed market conditions. The Funds have in place a line of
credit that may be used to meet redemption requests during stressed market
conditions.
Redemptions Through a Financial Intermediary
If
you purchased shares from a financial intermediary, you may sell (redeem) shares
by contacting your financial intermediary.
Redeeming Directly from the Fund
If
you purchased shares directly from the Funds and you appear on Fund records as
the registered holder, you may redeem all or part of your shares using one of
the methods described below.
By Mail
|
• |
|
Send
a written request to: |
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
Illinois 60680-4766
Overnight Address:
JOHCM
Funds Trust
c/o
The Northern Trust Company
333
South Wabash Avenue
Attn:
Funds Center, Floor 38
Chicago,
IL 60604
121
|
• |
|
The
redemption request must include: |
|
1. |
The
number of shares or the dollar amount to be
redeemed; |
|
2. |
The
Fund account number; and |
|
3. |
The
signatures of all account owners
signed in the exact name(s) and any special capacity in which they are
registered. |
|
• |
|
A
Medallion Signature Guarantee (see below) is required but may be waived in
certain (limited) circumstances if: |
|
1. |
The
proceeds are to be sent elsewhere than the address of record,
or |
|
2. |
The
redemption is requested in writing and the amount is greater than
$100,000. |
|
• |
|
Only
the listed street address should be used for overnight delivery, and not
the P.O. Box address. Please note that receipt by the US Post Office does
not constitute delivery to or receipt by the Funds or the Transfer
Agent. |
By Wire
If
you authorized wire redemptions on your New Account Application, you can redeem
shares and have the proceeds sent by federal wire transfer to a previously
designated account.
|
• |
|
Call
the Transfer Agent at 866‑260‑9549 (toll free) or 312‑557‑5913 for
instructions. |
|
• |
|
The
minimum amount that may be redeemed by this method is
$250. |
By Telephone
Telephone
privileges are automatically established on your account unless you indicate
otherwise on your New Account Application.
|
• |
|
Call
866‑260‑9549 (toll free) or 312‑557‑5913 to use the telephone
privilege. |
|
• |
|
If
your account is already opened and you wish to add the telephone
privilege, send a written request to: |
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
Illinois 60680-4766
Overnight Address:
JOHCM
Funds Trust
c/o
The Northern Trust Company
333
South Wabash Avenue
Attn:
Funds Center, Floor 38
Chicago,
IL 60604
|
• |
|
The
written request to add the telephone privilege must be signed by each
owner of the account and must be accompanied by signature
guarantees. |
|
• |
|
Only
the listed street address should be used for overnight delivery, and not
the P.O. Box address. Please note that receipt by the US Post Office does
not constitute delivery to or receipt by the Funds or the Transfer
Agent. |
122
Neither
the Funds, the Transfer Agent, nor their respective affiliates will be liable
for complying with telephone instructions that they reasonably believe to be
genuine or for any loss, damage, cost, or expenses in acting on such telephone
instructions. You will bear the risk of any such loss. The Funds, the Transfer
Agent, or both, will employ reasonable procedures to determine that telephone
instructions are genuine. If the Funds and/or the Transfer Agent do not employ
such procedures, they may be liable for losses due to unauthorized or fraudulent
instructions. Such procedures may include, among others, requiring forms of
personal identification before acting upon telephone instructions, providing
written confirmation of the transactions, and/or digitally recording telephone
instructions. The Funds may terminate the telephone procedures at any time.
During periods of extreme market activity, it is possible that you may encounter
some difficulty in telephoning us. If you are unable to reach us by telephone,
you may request a sale by mail.
Medallion Signature Guarantee
Some
circumstances may require that your request to redeem shares be made in writing
accompanied by an original Medallion Signature Guarantee. A Medallion Signature
Guarantee helps protect you against fraud. You can obtain a Medallion Signature
Guarantee from most banks or securities dealers, but not from a notary public.
You should verify with the institution that it is an eligible guarantor prior to
signing. The recognized medallion program is Securities Transfer Agent Medallion
Program. SIGNATURE GUARANTEES RECEIVED FROM INSTITUTIONS NOT PARTICIPATING IN
THIS PROGRAM WILL NOT BE ACCEPTED. The Medallion Signature Guarantee must cover
the amount of the requested transaction. There are several different guarantee
amounts, so it is important to acquire a guarantee amount equal to or greater
than the amount of the transaction. If the surety bond of the Medallion
Guarantee is less than the transaction amount, your request may be
rejected.
An
original Medallion Signature Guarantee is generally required, but may be waived
in certain (limited) circumstances if any of the following applies:
|
• |
|
the
redemption is requested in writing and the amount redeemed is greater than
$100,000; |
|
• |
|
information
on your investment application has been changed, including the name(s) or
the address on your account or the name or address of a payee has been
changed within 30 days of your redemption
request; |
|
• |
|
proceeds
or shares are being sent/transferred from a joint account to an
individual’s account; or |
|
• |
|
proceeds
are being sent via wire or ACH and bank instructions have been added or
changed within 30 days of your redemption
request. |
If
your written request is for redemption greater than $5 million, call
866‑260‑9549 (toll free) or 312‑557‑5913 for Medallion Signature Guarantee
requirements.
Additional Information About Redemptions
The
Funds typically expect that they will pay redemption proceeds by check or
electronic transfer within seven (7) calendar days after receipt of a
proper redemption request although proceeds normally are paid within three
(3) Business Days. If you are redeeming shares that have been purchased via
ACH, the Funds may hold redemption proceeds until the purchase amount has been
collected, which may be as long as five (5) Business Days after purchase
date. For shares recently purchased by check, redemption proceeds may not be
available until the check has cleared which may take up to five (5) days
for the date of purchase. To eliminate this delay, you may purchase shares of a
Fund by wire. Also, when the NYSE is closed (or when trading is restricted) for
any reason other than its customary weekend or holiday closing or under any
emergency circumstances, as determined by the Securities and Exchange
Commission, the Funds may suspend redemptions or postpone payment of redemption
proceeds. The Funds typically expect to pay redemptions from cash, cash
equivalents, proceeds from the sale of Fund shares, any lines of credit, and
then from the sale of portfolio securities. These redemption payment methods
will be used in both regular and stressed market conditions.
123
At
the discretion of the Funds or the Transfer Agent, corporate investors and other
associations may be required to furnish an appropriate certification authorizing
redemptions to ensure proper authorization.
Generally,
all redemptions will be for cash. However, if you redeem shares worth over the
lesser of $250,000 or 1% of the NAV of a Fund, the Fund reserves the right to
pay part or all of your redemption proceeds in readily marketable securities
instead of cash at the discretion of the Fund. Shareholders may incur brokerage
charges on the sale of any securities distributed in lieu of cash and will bear
market rate until the security is sold. If payment is made in securities, the
Fund will value the securities selected in the same manner in which it computes
its NAV. This process minimizes the effect of large redemptions on a Fund and
its remaining shareholders. As with any security, a shareholder will bear taxes
on any capital gains from the sale of a security received in a redemption in
kind.
Involuntary Redemptions of Your Shares
If
your account balance drops below $1,000,000 in the case of Institutional Shares,
$25,000 in the case of Advisor Shares, $2,000 in the case of Investor Shares, or
$10,000,000 in the case of Class Z Shares because of redemptions you may be
required to sell your shares. The Funds will provide you at least thirty
(30) days’ written notice to give you sufficient time to add to your
account and avoid the sale of your shares.
How
to Exchange Shares
You
may exchange your shares for the same share class of another Fund on any
Business Day by contacting the Funds directly by mail or telephone by calling
1‑866‑260‑9549 (toll free) or 312‑557‑5913. The exchange privilege may be
changed or canceled at any time upon sixty (60) days’ written notice.
You
may also exchange your shares of one class of a Fund for shares of another class
of the same Fund, provided that you qualify as an eligible investor for the
requested class at the time of the exchange. Investors are responsible for
initiating an exchange request and all exchanges are subject to meeting any
investment minimum or eligibility requirements. If you hold shares through
a financial intermediary, your financial intermediary also may initiate an
exchange between share classes in certain circumstances. You should consult your
financial intermediary for details and read carefully any materials provided by
the intermediary along with this prospectus. The Funds do not charge a fee for
this privilege.
The
Funds reserve the right to eliminate this exchange privilege at any time at its
discretion and may refuse exchanges by any person or group if, in the Funds’
judgment, the Funds would potentially be adversely affected. Before making
an exchange request, you should read the prospectus carefully, particularly
since fees and expenses differ from one class to another. An exchange between
classes of shares of the same Fund is generally not taxable for federal income
tax purposes. Investors could realize a taxable gain or loss when
exchanging shares of a Fund for shares of another Fund. The Funds do not provide
tax advice; you should consult your own tax advisor. If you are exchanging
between accounts that are not registered in the same name, address, and taxpayer
identification number (TIN), there may be additional requirements.
The
exchange privilege is not intended as a vehicle for short-term or excessive
trading. The Funds may suspend or terminate your exchange privilege if you
engage in a pattern of exchanges that is excessive, as determined in the sole
discretion of the Funds. For more information about the Funds’ policy on
excessive trading, see “Market Timing Policy” below.
Market
Timing Policy
Each
Fund is intended to be a long-term investment. Excessive purchases and
redemptions of shares of a Fund in an effort to take advantage of short-term
market fluctuations, known as “market timing,” can interfere with long-term or
efficient portfolio management strategies and increase the expenses of the Fund,
to the
124
detriment
of long-term investors. Because each Fund invests its assets in non‑U.S.
securities, investors may seek to take advantage of time zone differences
between the non‑U.S. markets on which a Fund’s portfolio securities trade and
the time at which the NAV is calculated. For example, a market-timer may
purchase shares of a Fund based on events occurring after non‑U.S. market
closing prices are established but before the NAV calculation, that are likely
to result in higher prices in non‑U.S. markets the next day. The market-timer
would then redeem the Fund’s shares the next day when a Fund’s share price would
reflect the increased prices in non‑U.S. markets, realizing a quick profit at
the expense of long-term Fund shareholders.
Excessive
short-term trading may: (1) require a Fund to sell securities in the Fund’s
portfolio at inopportune times to fund redemption payments, (2) dilute the
value of shares held by long-term shareholders, (3) cause a Fund to
maintain a larger cash position than would otherwise be necessary,
(4) increase brokerage commissions and related costs and expenses, and
(5) generate additional tax liability. Accordingly, the Board of Trustees
has adopted policies and procedures that seek to restrict market timing
activity. Under these policies, the Funds periodically examine transactions that
exceed monetary thresholds or numerical limits within certain time periods. If a
Fund believes, in its sole discretion, that an investor is engaged in excessive
short-term trading or is otherwise engaged in market timing activity, a Fund
may, with or without prior notice to the investor, reject further purchase or
exchange orders from that investor, and disclaim responsibility for any
consequential losses that the investor may incur related to the rejected
purchases. Alternatively, the Funds may limit the amount, number, or frequency
of any future purchases or exchanges and/or the method by which an investor may
request future purchases and redemptions. A Fund’s response to any particular
market timing activity will depend on the facts and circumstances of each case,
such as the extent and duration of the market timing activity and the investor’s
trading history in the Fund. While the Funds cannot assure the prevention of all
excessive trading and market timing, by making these judgments, the Funds
believes it is acting in a manner that is in the best interests of
shareholders.
Financial
intermediaries may establish omnibus accounts with the Funds through which they
place transactions for their customers. Omnibus accounts include multiple
investors and typically provide the Funds with a net purchase or redemption. The
identity of individual investors ordinarily is not known to or tracked by the
Funds. The Funds will enter into information sharing agreements with certain
financial intermediaries under which the financial intermediaries are obligated
to: (1) enforce during the term of the agreement, a market-timing policy,
the terms of which are acceptable to the Funds; (2) furnish the Funds, upon
request, with information regarding customer trading activities in shares of the
Funds; and (3) enforce the Funds’ market-timing policy with respect to
customers identified by the Funds as having engaged in market
timing.
The
Funds apply these policies and procedures to all shareholders believed to be
engaged in market timing or excessive trading. While the Funds may monitor
transactions at the omnibus account level, the netting effect makes it more
difficult to identify and eliminate market-timing activities in omnibus
accounts. The Funds have no arrangements to permit any investor to trade
frequently in shares of the Funds, nor will it enter into any such arrangements
in the future.
Financial
intermediaries maintaining omnibus accounts with a Fund may impose market timing
policies that are more restrictive than the market timing policy adopted by the
Board of Trustees. For instance, these financial intermediaries may impose
limits on the number of purchase and sale transactions that an investor may make
over a set period of time and impose penalties for transactions in excess of
those limits. Financial intermediaries also may exempt certain types of
transactions from these limitations. If you purchased your shares through a
financial intermediary, you should read carefully any materials provided by the
financial intermediary together with this prospectus to fully understand the
market timing policies applicable to you.
Distribution
Plans
The
Funds have adopted a plan under Rule 12b‑1 that authorizes Advisor
Class and Investor Class shares to pay distribution fees. Fees under
the plan will not exceed 0.10% for Advisor shares and 0.25% for
125
Investor
shares. Because these fees are paid out of a Fund’s assets on an on‑going basis,
over time these fees will increase the cost of your investment and may cost you
more than paying other types of sales charges.
DIVIDENDS AND DISTRIBUTIONS
Fund
Policy
Each
Fund distributes substantially all of its net investment income to shareholders
in the form of dividends. The table below shows when each Fund intends to
declare and distribute income dividends to shareholders of record.
Distribution
Frequency
|
|
|
| |
Annually |
|
Monthly |
|
Quarterly |
JOHCM Emerging Markets Opportunities
Fund |
|
JOHCM Credit Income Fund* |
|
TSW Large Cap Value Fund |
|
| |
JOHCM Emerging Markets Discovery Fund |
|
JOHCM Global Income Builder Fund* |
|
|
|
| |
JOHCM Global Select Fund |
|
TSW High Yield Bond Fund* |
|
|
|
| |
JOHCM International Opportunities Fund |
|
| |
|
|
| |
JOHCM International Select Fund |
|
| |
|
|
| |
Regnan Global Equity Impact Solutions |
|
| |
|
|
| |
TSW Emerging Markets Fund |
|
| |
|
* |
The JOHCM Credit Income Fund, JOHCM Global
Income Builder Fund, and TSW High Yield Bond Fund each intend to declare
daily and pay monthly substantially all of their net investment income as
dividends to its shareholders. |
Each
Fund intends to distribute its net realized long-term capital gains and its net
realized short-term capital gains, if any, at least once a year. Each Fund may
distribute income dividends and capital gains more frequently, if necessary, in
order to reduce or eliminate federal excise or income taxes on the Fund. The
amount of any distribution varies and there is no guarantee a Fund will pay
either income dividends or capital gain distributions.
Income
dividends and capital gain distributions are automatically reinvested in
additional shares of a Fund at the applicable NAV on the distribution date
unless you request cash distributions on your application or through a written
request. If cash payment is requested, a check normally will be mailed within
five business days after the payable date.
Any
undelivered checks or checks that are not cashed for six months may be deemed
legally abandoned if an attempt to reach you to request a reissue of the check
is not successful. The proceeds will then be escheated (transferred) to the
appropriate state’s unclaimed property administration in accordance with
statutory requirements.
TAXES
Distributions
The
following information is provided to help you understand the federal income
taxes you may have to pay on income dividends and capital gains distributions
from a Fund, as well as on gains realized from your
126
redemption
of Fund shares. This discussion is not intended
or written to be used as tax advice. Because everyone’s tax situation is unique,
you should consult your tax professional about federal, state, local or non‑U.S.
tax consequences before making an investment in the Funds.
Each
Fund intends to qualify each year as a “regulated investment company” under
Subchapter M of the Code. By so qualifying, each Fund will not be subject to
federal income taxes to the extent that it timely distributes all of its net
investment income and any net realized capital gains.
For
federal income tax purposes, distributions of net investment income are taxable
generally as ordinary income although certain distributions of qualified
dividend income paid to a non‑corporate US shareholder may be subject to income
tax at the applicable rate for long-term capital gain.
Distributions
of net capital gains (that is, the excess of the net realized gains from the
sale of investments that a Fund owned for more than one year over the net
realized losses from investments that a Fund owned for one year or less) that
are properly reported by a Fund as capital gain dividends will generally be
taxable as long-term capital gain regardless of how long you have held your
shares in the Fund.
Distributions
of net realized short-term capital gain (that is, the excess of any net
short-term capital gain over net long-term capital loss), if any, will be
taxable to shareholders as ordinary income. Capital gain to a corporate
shareholder is taxed at the same rate as ordinary income.
If
you are a taxable investor and invest in the Funds shortly before it makes a
distribution, some of your investment may be returned to you in the form of a
taxable distribution. Fund distributions will reduce the NAV per share.
Therefore, if you buy shares after a Fund has experienced appreciation but
before the record date of a distribution of those gains, you may pay the full
price for the shares and then effectively receive a portion of the purchase
price back as a taxable distribution. This is commonly known as “buying a
dividend.”
Distributions
from the Funds (both taxable income dividends and capital gains) are normally
taxable to you as ordinary income or long-term capital gains, regardless of
whether you reinvest these distributions or receive them in cash (unless you
hold shares in a qualified tax‑advantaged plan or account or are otherwise not
subject to federal income tax). Due to the nature of the investment strategies
used, distributions by a Fund generally are expected to consist primarily of
income dividends and net realized capital gains; however, the nature of a Fund’s
distributions could vary in any given year.
The
Funds will mail to each shareholder after the close of the calendar year an
Internal Revenue Service (“IRS”) Form 1099 setting forth the federal income tax
status of distributions made during the year. Income dividends and capital gains
distributions also may be subject to state and local taxes.
Selling Shares
Selling,
redeeming or exchanging your shares may result in a realized capital gain or
loss, which is generally subject to federal income tax. In general, any gain or
loss realized upon a taxable disposition of shares will be treated as long-term
capital gain or loss if the shares have been held for more than 12 months.
Otherwise, the gain or loss on the taxable disposition of Fund shares will be
treated as short-term capital gain or loss. For individuals, any long-term
capital gains you realize from selling Fund shares currently are taxed at
preferential income tax rates. Short-term capital gains are taxed at ordinary
income tax rates. For shares acquired on or after January 1, 2012, the
Funds (or relevant broker or financial adviser) are required to compute and
report to the IRS and furnish to Fund shareholders cost basis information when
such shares are sold or exchanged. The Funds have elected to use the average
cost method, unless you instruct the Funds to use a different IRS‑accepted cost
basis method, or choose to specifically identify your shares at the time of each
sale or exchange. If your account is held by your broker or other financial
adviser, they may select a different cost basis method. In these cases, please
contact your broker or other financial adviser to obtain information with
respect to the available methods and
127
elections
for your account. You should carefully review the cost basis information
provided by the Funds and make any additional basis, holding period or other
adjustments that are required when reporting these amounts on your federal and
state income tax returns. Fund shareholders should consult with their tax
advisers to determine the best IRS‑accepted cost basis method for their tax
situation and to obtain more information about how the cost basis reporting
requirements apply to them.
Backup Withholding
By
law, you may be subject to backup withholding on a portion of your taxable
distributions and redemption proceeds unless you provide your correct Social
Security or taxpayer identification number and certify that: (1) this
number is correct, (2) you are not subject to backup withholding, and
(3) you are a U.S. person (including a U.S. resident alien). You also may
be subject to withholding if the IRS instructs the Funds to withhold a portion
of your distributions or proceeds. You should be aware that the Funds may be
fined by the IRS for each account for which a certified taxpayer identification
number is not provided. In the event that such a fine is imposed with respect to
a specific account in any year, the Funds may make a corresponding charge
against the account.
Tax Status for Retirement Plans and Other
Tax‑Advantaged Accounts
When
you invest in a Fund through a qualified employee benefit plan, retirement plan
or some other tax‑advantaged account, dividend and capital gain distributions
generally are not subject to current federal income taxes. In general, these
plans or accounts are governed by complex tax rules. You should ask your tax
adviser or plan administrator for more information about your tax situation,
including possible state or local taxes.
Medicare Tax
An
additional 3.8% Medicare tax may be imposed on distributions you receive from a
Fund and gains from selling, redeeming, or exchanging your shares.
SHAREHOLDER REPORTS AND OTHER INFORMATION
The
Funds will send one copy of prospectuses and shareholder reports to households
containing multiple shareholders with the same last name. This process, known as
“householding,” reduces costs and provides a convenience to shareholders. If you
share the same last name and address with another shareholder and you prefer to
receive separate prospectuses and shareholder reports, call the Funds at
866‑260‑9549 (toll free) or 312‑557‑5913 and we will begin separate mailings to
you within 30 days of your request. If you or others in your household invest in
the Funds through a broker or other financial intermediary, you may receive
separate prospectuses and shareholder reports, regardless of whether or not you
have consented to householding on your investment application.
128
FINANCIAL HIGHLIGHTS
The
following Financial Highlights tables are intended to help you understand the
financial performance of each class of shares of each Fund, as applicable, for
the past five fiscal years. Fund information for certain periods presented
represent the past financial information for the applicable Fund’s Predecessor
Fund. Some of this information reflects financial information for a single fund
share. The Funds did not offer Class Z shares during the periods
shown.
The
total returns in the table represent the rate that an investor would have earned
(or lost) on an investment in a particular class of shares of a Fund, assuming
reinvestment of all dividends and distributions. The financial information for
TSW Large Cap Value Fund for fiscal years ended October 31, 2021 and prior
were audited by the Predecessor Fund’s auditors. The financial information for
the fiscal period ended September 30, 2022 for the TSW Large Cap Value
Fund, and the financial information for all periods of the remaining series of
the Trust have been audited by PricewaterhouseCoopers, LLP, the independent
registered public accounting firm whose report, along with each Fund’s financial
statements, is included in the Trust’s Annual Report. You can obtain the Annual
Report, which contains more performance information, at no charge by calling
1‑866‑260‑9549.
129
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
| |
|
|
Advisor Shares |
|
|
|
Year Ended September 30, 2022 |
|
|
Period
Ended September 30, 2021(a) |
|
JOHCM
Credit Income Fund |
|
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
10.13 |
|
|
$ |
10.16 |
|
| |
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.32 |
|
|
|
0.24 |
|
Net
realized and unrealized losses from investments and foreign
currency |
|
|
(1.39 |
) |
|
|
(0.08 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.07 |
) |
|
|
0.16 |
|
| |
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
| |
From
net investment income |
|
|
(0.31 |
) |
|
|
(0.19 |
) |
From
net realized gains |
|
|
(0.06 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.37 |
) |
|
|
(0.19 |
) |
| |
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(1.44 |
) |
|
|
(0.03 |
) |
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.69 |
|
|
$ |
10.13 |
|
| |
|
|
|
|
|
|
|
Total
return |
|
|
(10.77 |
%) |
|
|
1.61 |
%(c) |
Ratios/Supplemental
data: |
|
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
9 |
|
|
$ |
10 |
|
Ratio
of net expenses to average net assets |
|
|
0.68 |
% |
|
|
0.69 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
3.34 |
% |
|
|
3.03 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
2.45 |
% |
|
|
4.39 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
48.18 |
% |
|
|
84.76 |
%(c) |
(a) |
For
the period from December 18, 2020, commencement of operations, to
September 30, 2021. |
(b) |
Net
investment income (loss) for the year ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
130
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Period
Ended September 30, 2020(a) |
|
JOHCM
Credit Income Fund |
|
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
10.15 |
|
|
$ |
9.95 |
|
|
$ |
10.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.03 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(1.40 |
) |
|
|
0.21 |
|
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.07 |
) |
|
|
0.53 |
|
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.32 |
) |
|
|
(0.32 |
) |
|
|
(0.04 |
) |
From
net realized gains |
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.38 |
) |
|
|
(0.33 |
) |
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(1.45 |
) |
|
|
0.20 |
|
|
|
(0.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.70 |
|
|
$ |
10.15 |
|
|
$ |
9.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(10.76 |
%) |
|
|
5.27 |
% |
|
|
(0.14 |
%)(c) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
5,961 |
|
|
$ |
5,224 |
|
|
$ |
4,989 |
|
Ratio
of net expenses to average net assets |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
|
0.65 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
3.46 |
% |
|
|
3.11 |
% |
|
|
2.85 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
2.35 |
% |
|
|
4.39 |
% |
|
|
5.47 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
48.18 |
% |
|
|
84.76 |
% |
|
|
5.72 |
%(c) |
(a) |
For
the period from August 17, 2020, commencement of operations, to
September 30, 2020. |
(b) |
Net
investment income (loss) for the year ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
131
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Advisor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Emerging Markets Opportunities Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
12.69 |
|
|
$ |
10.81 |
|
|
$ |
10.75 |
|
|
$ |
11.38 |
|
|
$ |
11.96 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.29 |
|
|
|
0.20 |
|
|
|
0.08 |
|
|
|
0.40 |
|
|
|
0.14 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(2.87 |
) |
|
|
1.81 |
|
|
|
0.40 |
|
|
|
(0.59 |
) |
|
|
(0.27 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(2.58 |
) |
|
|
2.01 |
|
|
|
0.48 |
|
|
|
(0.19 |
) |
|
|
(0.13 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.50 |
) |
|
|
(0.13 |
) |
|
|
(0.42 |
) |
|
|
(0.10 |
) |
|
|
(0.07 |
) |
From
net realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.34 |
) |
|
|
(0.38 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.50 |
) |
|
|
(0.13 |
) |
|
|
(0.42 |
) |
|
|
(0.44 |
) |
|
|
(0.45 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(3.08 |
) |
|
|
1.88 |
|
|
|
0.06 |
|
|
|
(0.63 |
) |
|
|
(0.58 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
9.61 |
|
|
$ |
12.69 |
|
|
$ |
10.81 |
|
|
$ |
10.75 |
|
|
$ |
11.38 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(21.18 |
%) |
|
|
18.64 |
% |
|
|
4.37 |
% |
|
|
(1.31 |
%) |
|
|
(1.30 |
%) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
65,363 |
|
|
$ |
81,462 |
|
|
$ |
75,971 |
|
|
$ |
83,555 |
|
|
$ |
99,577 |
|
Ratio
of net expenses to average net assets |
|
|
1.10 |
% |
|
|
1.12 |
% |
|
|
1.20 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
Ratio
of net investment income to average net assets |
|
|
2.55 |
% |
|
|
1.51 |
% |
|
|
0.81 |
% |
|
|
3.71 |
% |
|
|
1.15 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.11 |
% |
|
|
1.13 |
% |
|
|
1.20 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
Ratio
of expense recoupment to average net assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
(b) |
|
|
0.02 |
% |
Portfolio
turnover rate(c)
|
|
|
41.23 |
% |
|
|
38.60 |
% |
|
|
53.30 |
% |
|
|
35.35 |
% |
|
|
31.87 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Amount
rounds to less 0.005%. |
(c) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
132
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Investor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Emerging Markets Opportunities Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
12.67 |
|
|
$ |
10.80 |
|
|
$ |
10.74 |
|
|
$ |
11.36 |
|
|
$ |
11.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.28 |
|
|
|
0.19 |
|
|
|
0.08 |
|
|
|
0.41 |
|
|
|
0.12 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(2.88 |
) |
|
|
1.80 |
|
|
|
0.38 |
|
|
|
(0.60 |
) |
|
|
(0.27 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(2.60 |
) |
|
|
1.99 |
|
|
|
0.46 |
|
|
|
(0.19 |
) |
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.46 |
) |
|
|
(0.12 |
) |
|
|
(0.40 |
) |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
From
net realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.34 |
) |
|
|
(0.38 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.46 |
) |
|
|
(0.12 |
) |
|
|
(0.40 |
) |
|
|
(0.43 |
) |
|
|
(0.44 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(3.06 |
) |
|
|
1.87 |
|
|
|
0.06 |
|
|
|
(0.62 |
) |
|
|
(0.59 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
9.61 |
|
|
$ |
12.67 |
|
|
$ |
10.80 |
|
|
$ |
10.74 |
|
|
$ |
11.36 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(21.33 |
%) |
|
|
18.42 |
% |
|
|
4.26 |
% |
|
|
(1.37 |
%) |
|
|
(1.47 |
%) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
10,044 |
|
|
$ |
9,854 |
|
|
$ |
14,268 |
|
|
$ |
13,348 |
|
|
$ |
8,020 |
|
Ratio
of net expenses to average net assets |
|
|
1.25 |
% |
|
|
1.27 |
% |
|
|
1.35 |
% |
|
|
1.47 |
% |
|
|
1.49 |
% |
Ratio
of net investment income to average net assets |
|
|
2.43 |
% |
|
|
1.47 |
% |
|
|
0.76 |
% |
|
|
3.86 |
% |
|
|
1.01 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
1.35 |
% |
|
|
1.47 |
% |
|
|
1.49 |
% |
Ratio
of expense recoupment to average net assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
(b) |
|
|
0.02 |
% |
Portfolio
turnover rate(c)
|
|
|
41.23 |
% |
|
|
38.60 |
% |
|
|
53.30 |
% |
|
|
35.35 |
% |
|
|
31.87 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Amount
rounds to less 0.005%. |
(c) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
133
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Emerging Markets Opportunities Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
12.73 |
|
|
$ |
10.85 |
|
|
$ |
10.78 |
|
|
$ |
11.41 |
|
|
$ |
11.99 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.31 |
|
|
|
0.21 |
|
|
|
0.11 |
|
|
|
0.48 |
|
|
|
0.15 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(2.88 |
) |
|
|
1.81 |
|
|
|
0.39 |
|
|
|
(0.66 |
) |
|
|
(0.27 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(2.57 |
) |
|
|
2.02 |
|
|
|
0.50 |
|
|
|
(0.18 |
) |
|
|
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.52 |
) |
|
|
(0.14 |
) |
|
|
(0.43 |
) |
|
|
(0.11 |
) |
|
|
(0.08 |
) |
From
net realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.34 |
) |
|
|
(0.38 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.52 |
) |
|
|
(0.14 |
) |
|
|
(0.43 |
) |
|
|
(0.45 |
) |
|
|
(0.46 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(3.09 |
) |
|
|
1.88 |
|
|
|
0.07 |
|
|
|
(0.63 |
) |
|
|
(0.58 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
9.64 |
|
|
$ |
12.73 |
|
|
$ |
10.85 |
|
|
$ |
10.78 |
|
|
$ |
11.41 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(21.11 |
%) |
|
|
18.70 |
% |
|
|
4.56 |
% |
|
|
(1.21 |
%) |
|
|
(1.23 |
%) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
575,508 |
|
|
$ |
738,534 |
|
|
$ |
543,987 |
|
|
$ |
486,372 |
|
|
$ |
388,129 |
|
Ratio
of net expenses to average net assets |
|
|
1.02 |
% |
|
|
1.02 |
% |
|
|
1.10 |
% |
|
|
1.22 |
% |
|
|
1.24 |
% |
Ratio
of net investment income to average net assets |
|
|
2.70 |
% |
|
|
1.61 |
% |
|
|
1.04 |
% |
|
|
4.46 |
% |
|
|
1.26 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.03 |
% |
|
|
1.03 |
% |
|
|
1.10 |
% |
|
|
1.22 |
% |
|
|
1.24 |
% |
Ratio
of expense recoupment to average net assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
(b) |
|
|
0.02 |
% |
Portfolio
turnover rate(c)
|
|
|
41.23 |
% |
|
|
38.60 |
% |
|
|
53.30 |
% |
|
|
35.35 |
% |
|
|
31.87 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Amount
rounds to less 0.005%. |
(c) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
134
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Advisor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Emerging Markets Discovery Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
18.35 |
|
|
$ |
13.40 |
|
|
$ |
11.62 |
|
|
$ |
11.85 |
|
|
$ |
14.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.15 |
|
|
|
0.02 |
|
|
|
0.09 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(3.22 |
) |
|
|
5.00 |
|
|
|
1.70 |
|
|
|
(0.20 |
) |
|
|
(0.56 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(3.15 |
) |
|
|
5.01 |
|
|
|
1.85 |
|
|
|
(0.18 |
) |
|
|
(0.47 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.05 |
) |
|
|
(0.06 |
) |
|
|
(0.07 |
) |
|
|
(0.05 |
) |
|
|
(0.13 |
) |
From
net realized gains |
|
|
(4.77 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.55 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(4.82 |
) |
|
|
(0.06 |
) |
|
|
(0.07 |
) |
|
|
(0.05 |
) |
|
|
(1.68 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(7.97 |
) |
|
|
4.95 |
|
|
|
1.78 |
|
|
|
(0.23 |
) |
|
|
(2.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
10.38 |
|
|
$ |
18.35 |
|
|
$ |
13.40 |
|
|
$ |
11.62 |
|
|
$ |
11.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(23.44 |
%) |
|
|
37.50 |
% |
|
|
15.95 |
% |
|
|
(1.51 |
%) |
|
|
(4.50 |
%) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
8,946 |
|
|
$ |
15,209 |
|
|
$ |
14,365 |
|
|
$ |
415 |
|
|
$ |
751 |
|
Ratio
of net expenses to average net assets |
|
|
1.59 |
% |
|
|
1.63 |
% |
|
|
1.64 |
% |
|
|
1.64 |
% |
|
|
1.64 |
% |
Ratio
of net investment income to average net assets |
|
|
0.53 |
% |
|
|
0.06 |
% |
|
|
1.21 |
% |
|
|
0.15 |
% |
|
|
0.69 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.86 |
% |
|
|
1.94 |
% |
|
|
2.29 |
% |
|
|
2.66 |
% |
|
|
2.65 |
% |
Portfolio
turnover rate(b)
|
|
|
123.95 |
% |
|
|
163.54 |
% |
|
|
136.73 |
% |
|
|
133.43 |
% |
|
|
127.34 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
135
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Emerging Markets Discovery Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
18.38 |
|
|
$ |
13.42 |
|
|
$ |
11.64 |
|
|
$ |
11.87 |
|
|
$ |
14.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.09 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(3.24 |
) |
|
|
5.00 |
|
|
|
1.83 |
|
|
|
(0.21 |
) |
|
|
(0.55 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(3.15 |
) |
|
|
5.03 |
|
|
|
1.87 |
|
|
|
(0.17 |
) |
|
|
(0.46 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
(0.14 |
) |
From
net realized gains |
|
|
(4.77 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.55 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(4.84 |
) |
|
|
(0.07 |
) |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
(1.69 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(7.99 |
) |
|
|
4.96 |
|
|
|
1.78 |
|
|
|
(0.23 |
) |
|
|
(2.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
10.39 |
|
|
$ |
18.38 |
|
|
$ |
13.42 |
|
|
$ |
11.64 |
|
|
$ |
11.87 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(23.44 |
%) |
|
|
37.60 |
% |
|
|
16.09 |
% |
|
|
(1.42 |
%) |
|
|
(4.43 |
%) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
24,382 |
|
|
$ |
32,279 |
|
|
$ |
29,282 |
|
|
$ |
23,870 |
|
|
$ |
24,093 |
|
Ratio
of net expenses to average net assets |
|
|
1.49 |
% |
|
|
1.53 |
% |
|
|
1.54 |
% |
|
|
1.54 |
% |
|
|
1.54 |
% |
Ratio
of net investment income to average net assets |
|
|
0.71 |
% |
|
|
0.18 |
% |
|
|
0.33 |
% |
|
|
0.36 |
% |
|
|
0.69 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.76 |
% |
|
|
1.84 |
% |
|
|
2.19 |
% |
|
|
2.56 |
% |
|
|
2.48 |
% |
Portfolio
turnover rate(b)
|
|
|
123.95 |
% |
|
|
163.54 |
% |
|
|
136.73 |
% |
|
|
133.43 |
% |
|
|
127.34 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
136
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Advisor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Period
Ended September 30, 2018(a) |
|
JOHCM
Global Income Builder Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
|
$ |
9.71 |
|
|
$ |
10.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.32 |
|
|
|
0.31 |
|
|
|
0.21 |
|
|
|
0.31 |
|
|
|
0.29 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(1.92 |
) |
|
|
1.26 |
|
|
|
(0.11 |
) |
|
|
0.41 |
|
|
|
(0.30 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.60 |
) |
|
|
1.57 |
|
|
|
0.10 |
|
|
|
0.72 |
|
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.35 |
) |
|
|
(0.36 |
) |
|
|
(0.25 |
) |
|
|
(0.34 |
) |
|
|
(0.28 |
) |
From
net realized gains |
|
|
(0.22 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.57 |
) |
|
|
(0.36 |
) |
|
|
(0.30 |
) |
|
|
(0.34 |
) |
|
|
(0.28 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(2.17 |
) |
|
|
1.21 |
|
|
|
(0.20 |
) |
|
|
0.38 |
|
|
|
(0.29 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.93 |
|
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
|
$ |
9.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(15.19 |
%) |
|
|
16.01 |
% |
|
|
0.99 |
% |
|
|
7.66 |
% |
|
|
(0.06 |
%)(c) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
6,549 |
|
|
$ |
8,213 |
|
|
$ |
7,285 |
|
|
$ |
6,933 |
|
|
$ |
5,516 |
|
Ratio
of net expenses to average net assets |
|
|
0.82 |
% |
|
|
0.83 |
% |
|
|
0.93 |
% |
|
|
0.98 |
% |
|
|
0.98 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
2.52 |
% |
|
|
2.86 |
% |
|
|
2.14 |
% |
|
|
3.14 |
% |
|
|
3.50 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
0.98 |
% |
|
|
1.01 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.56 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
122.58 |
% |
|
|
92.03 |
% |
|
|
141.42 |
% |
|
|
54.70 |
% |
|
|
41.93 |
%(c) |
(a) |
For
the period from November 29, 2017, commencement of operations, to
September 30, 2018. |
(b) |
Net
investment income (loss) for the year ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
137
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Investor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Period
Ended September 30, 2019(a) |
|
JOHCM
Global Income Builder Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
|
$ |
10.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.30 |
|
|
|
0.30 |
|
|
|
0.20 |
|
|
|
0.06 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(1.92 |
) |
|
|
1.26 |
|
|
|
(0.12 |
) |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.62 |
) |
|
|
1.56 |
|
|
|
0.08 |
|
|
|
0.07 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.34 |
) |
|
|
(0.35 |
) |
|
|
(0.23 |
) |
|
|
(0.06 |
) |
From
net realized gains |
|
|
(0.22 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.56 |
) |
|
|
(0.35 |
) |
|
|
(0.28 |
) |
|
|
(0.06 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(2.18 |
) |
|
|
1.21 |
|
|
|
(0.20 |
) |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.92 |
|
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(15.38 |
%) |
|
|
15.88 |
% |
|
|
0.86 |
% |
|
|
0.75 |
%(c) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
53 |
|
|
$ |
61 |
|
|
$ |
81 |
|
|
$ |
77 |
|
Ratio
of net expenses to average net assets |
|
|
0.97 |
% |
|
|
0.98 |
% |
|
|
1.08 |
% |
|
|
1.13 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
2.35 |
% |
|
|
2.73 |
% |
|
|
2.01 |
% |
|
|
2.70 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
1.13 |
% |
|
|
1.16 |
% |
|
|
1.23 |
% |
|
|
1.63 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
122.58 |
% |
|
|
92.03 |
% |
|
|
141.42 |
% |
|
|
54.70 |
%(c) |
(a) |
For
the period from June 28, 2019, commencement of operations, to
September 30, 2019. |
(b) |
Net
investment income (loss) for the year ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
138
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Period
Ended September 30, 2018(a) |
|
JOHCM
Global Income Builder Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
|
$ |
9.71 |
|
|
$ |
10.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.22 |
|
|
|
0.33 |
|
|
|
0.30 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(1.92 |
) |
|
|
1.26 |
|
|
|
(0.11 |
) |
|
|
0.40 |
|
|
|
(0.30 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.59 |
) |
|
|
1.58 |
|
|
|
0.11 |
|
|
|
0.73 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.36 |
) |
|
|
(0.37 |
) |
|
|
(0.26 |
) |
|
|
(0.35 |
) |
|
|
(0.29 |
) |
From
net realized gains |
|
|
(0.22 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(0.58 |
) |
|
|
(0.37 |
) |
|
|
(0.31 |
) |
|
|
(0.35 |
) |
|
|
(0.29 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(2.17 |
) |
|
|
1.21 |
|
|
|
(0.20 |
) |
|
|
0.38 |
|
|
|
(0.29 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.93 |
|
|
$ |
11.10 |
|
|
$ |
9.89 |
|
|
$ |
10.09 |
|
|
$ |
9.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(15.11 |
%) |
|
|
16.12 |
% |
|
|
1.09 |
% |
|
|
7.77 |
% |
|
|
0.03 |
%(c) |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
60,002 |
|
|
$ |
89,897 |
|
|
$ |
75,835 |
|
|
$ |
105,634 |
|
|
$ |
28,206 |
|
Ratio
of net expenses to average net assets |
|
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.83 |
% |
|
|
0.88 |
% |
|
|
0.88 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
2.66 |
% |
|
|
2.96 |
% |
|
|
2.19 |
% |
|
|
3.42 |
% |
|
|
3.62 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
0.88 |
% |
|
|
0.91 |
% |
|
|
0.98 |
% |
|
|
1.08 |
% |
|
|
1.47 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
122.58 |
% |
|
|
92.03 |
% |
|
|
141.42 |
% |
|
|
54.70 |
% |
|
|
41.93 |
%(c) |
(a) |
For
the period from November 29, 2017, commencement of operations, to
September 30, 2018. |
(b) |
Net
investment income (loss) for the year ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
139
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Advisor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Global Select Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
21.39 |
|
|
$ |
17.28 |
|
|
$ |
16.41 |
|
|
$ |
16.73 |
|
|
$ |
15.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss)(a) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
(0.04 |
) |
|
|
0.10 |
|
|
|
0.07 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(5.22 |
) |
|
|
5.12 |
|
|
|
3.17 |
|
|
|
0.25 |
|
|
|
1.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(5.19 |
) |
|
|
5.13 |
|
|
|
3.13 |
|
|
|
0.35 |
|
|
|
1.74 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.18 |
) |
|
|
(0.06 |
) |
From
net realized gains |
|
|
(3.66 |
) |
|
|
(1.02 |
) |
|
|
(2.24 |
) |
|
|
(0.49 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(3.67 |
) |
|
|
(1.02 |
) |
|
|
(2.26 |
) |
|
|
(0.67 |
) |
|
|
(0.06 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(8.86 |
) |
|
|
4.11 |
|
|
|
0.87 |
|
|
|
(0.32 |
) |
|
|
1.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.53 |
|
|
$ |
21.39 |
|
|
$ |
17.28 |
|
|
$ |
16.41 |
|
|
$ |
16.73 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(30.52 |
%) |
|
|
30.60 |
% |
|
|
21.26 |
% |
|
|
2.66 |
% |
|
|
11.61 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
26,125 |
|
|
$ |
49,721 |
|
|
$ |
39,213 |
|
|
$ |
157,452 |
|
|
$ |
189,317 |
|
Ratio
of net expenses to average net assets |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.16 |
% |
|
|
1.16 |
% |
|
|
1.17 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.20 |
% |
|
|
0.04 |
% |
|
|
(0.28 |
%) |
|
|
0.63 |
% |
|
|
0.39 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.07 |
% |
|
|
1.08 |
% |
|
|
1.16 |
% |
|
|
1.17 |
% |
|
|
1.17 |
% |
Ratio
of expense recoupment to average net assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
(b) |
|
|
— |
(b) |
Portfolio
turnover rate(c)
|
|
|
54.44 |
% |
|
|
53.91 |
% |
|
|
40.21 |
% |
|
|
46.36 |
% |
|
|
24.81 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Amount
rounds to less 0.005%. |
(c) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
140
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
Global Select Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
21.46 |
|
|
$ |
17.32 |
|
|
$ |
16.44 |
|
|
$ |
16.76 |
|
|
$ |
15.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
— |
(b) |
|
|
0.10 |
|
|
|
0.09 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(5.24 |
) |
|
|
5.13 |
|
|
|
3.15 |
|
|
|
0.26 |
|
|
|
1.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(5.19 |
) |
|
|
5.16 |
|
|
|
3.15 |
|
|
|
0.36 |
|
|
|
1.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
(0.19 |
) |
|
|
(0.08 |
) |
From
net realized gains |
|
|
(3.66 |
) |
|
|
(1.02 |
) |
|
|
(2.23 |
) |
|
|
(0.49 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(3.69 |
) |
|
|
(1.02 |
) |
|
|
(2.27 |
) |
|
|
(0.68 |
) |
|
|
(0.08 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(8.88 |
) |
|
|
4.14 |
|
|
|
0.88 |
|
|
|
(0.32 |
) |
|
|
1.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.58 |
|
|
$ |
21.46 |
|
|
$ |
17.32 |
|
|
$ |
16.44 |
|
|
$ |
16.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(30.43 |
%) |
|
|
30.71 |
% |
|
|
21.43 |
% |
|
|
2.76 |
% |
|
|
11.76 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
255,895 |
|
|
$ |
523,270 |
|
|
$ |
422,745 |
|
|
$ |
225,884 |
|
|
$ |
335,636 |
|
Ratio
of net expenses to average net assets |
|
|
0.98 |
% |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.07 |
% |
Ratio
of net investment income to average net assets |
|
|
0.32 |
% |
|
|
0.13 |
% |
|
|
0.01 |
% |
|
|
0.66 |
% |
|
|
0.57 |
% |
Ratio
of gross expenses to average net assets |
|
|
0.99 |
% |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
Ratio
of expense recoupment to average net assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
(c) |
|
|
— |
(c) |
Portfolio
turnover rate(d)
|
|
|
54.44 |
% |
|
|
53.91 |
% |
|
|
40.21 |
% |
|
|
46.36 |
% |
|
|
24.81 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Amount
is less than $0.005 per share. |
(c) |
Amount
rounds to less 0.005%. |
(d) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
141
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
International Opportunities Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
11.82 |
|
|
$ |
10.48 |
|
|
$ |
10.65 |
|
|
$ |
10.71 |
|
|
$ |
11.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.17 |
|
|
|
0.22 |
|
|
|
0.17 |
|
|
|
0.24 |
|
|
|
0.20 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(2.03 |
) |
|
|
1.39 |
|
|
|
(0.09 |
) |
|
|
(0.10 |
) |
|
|
(0.02 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.86 |
) |
|
|
1.61 |
|
|
|
0.08 |
|
|
|
0.14 |
|
|
|
0.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.27 |
) |
|
|
(0.17 |
) |
|
|
(0.23 |
) |
|
|
(0.18 |
) |
|
|
(0.29 |
) |
From
net realized gains |
|
|
(1.38 |
) |
|
|
(0.10 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.37 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(1.65 |
) |
|
|
(0.27 |
) |
|
|
(0.25 |
) |
|
|
(0.20 |
) |
|
|
(0.66 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(3.51 |
) |
|
|
1.34 |
|
|
|
(0.17 |
) |
|
|
(0.06 |
) |
|
|
(0.48 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.31 |
|
|
$ |
11.82 |
|
|
$ |
10.48 |
|
|
$ |
10.65 |
|
|
$ |
10.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(17.89 |
%) |
|
|
15.39 |
% |
|
|
0.62 |
% |
|
|
1.42 |
% |
|
|
1.76 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
1,508 |
|
|
$ |
3,465 |
|
|
$ |
2,935 |
|
|
$ |
2,301 |
|
|
$ |
2,276 |
|
Ratio
of net expenses to average net assets |
|
|
0.88 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
Ratio
of net investment income to average net assets |
|
|
1.66 |
% |
|
|
1.83 |
% |
|
|
1.60 |
% |
|
|
2.29 |
% |
|
|
1.86 |
% |
Ratio
of gross expenses to average net assets |
|
|
3.34 |
% |
|
|
5.73 |
% |
|
|
9.42 |
% |
|
|
8.61 |
% |
|
|
8.23 |
% |
Portfolio
turnover rate(b)
|
|
|
68.19 |
% |
|
|
47.85 |
% |
|
|
64.62 |
% |
|
|
34.58 |
% |
|
|
57.05 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
142
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Investor Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
International Select Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
31.07 |
|
|
$ |
27.53 |
|
|
$ |
22.54 |
|
|
$ |
23.68 |
|
|
$ |
21.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.21 |
|
|
|
0.10 |
|
|
|
0.05 |
|
|
|
0.23 |
|
|
|
0.19 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(10.70 |
) |
|
|
4.25 |
|
|
|
5.11 |
|
|
|
(1.10 |
) |
|
|
1.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(10.49 |
) |
|
|
4.35 |
|
|
|
5.16 |
|
|
|
(0.87 |
) |
|
|
1.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.23 |
) |
|
|
(0.04 |
) |
|
|
(0.17 |
) |
|
|
(0.27 |
) |
|
|
(0.20 |
) |
From
net realized gains |
|
|
(2.62 |
) |
|
|
(0.77 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(2.85 |
) |
|
|
(0.81 |
) |
|
|
(0.17 |
) |
|
|
(0.27 |
) |
|
|
(0.20 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(13.34 |
) |
|
|
3.54 |
|
|
|
4.99 |
|
|
|
(1.14 |
) |
|
|
1.75 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
17.73 |
|
|
$ |
31.07 |
|
|
$ |
27.53 |
|
|
$ |
22.54 |
|
|
$ |
23.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(37.43 |
%) |
|
|
15.94 |
% |
|
|
23.02 |
% |
|
|
(3.59 |
%) |
|
|
8.97 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
376,893 |
|
|
$ |
800,457 |
|
|
$ |
643,607 |
|
|
$ |
588,729 |
|
|
$ |
551,489 |
|
Ratio
of net expenses to average net assets |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.23 |
% |
|
|
1.24 |
% |
|
|
1.25 |
% |
Ratio
of net investment income to average net assets |
|
|
0.82 |
% |
|
|
0.33 |
% |
|
|
0.20 |
% |
|
|
1.03 |
% |
|
|
0.83 |
% |
Ratio
of gross expenses to average net assets |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.23 |
% |
|
|
1.24 |
% |
|
|
1.25 |
% |
Portfolio
turnover rate(b)
|
|
|
58.91 |
% |
|
|
53.34 |
% |
|
|
43.51 |
% |
|
|
33.06 |
% |
|
|
26.06 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
143
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Year
Ended September 30, 2021 |
|
|
Year
Ended September 30, 2020 |
|
|
Year
Ended September 30, 2019 |
|
|
Year
Ended September 30, 2018 |
|
JOHCM
International Select Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
31.08 |
|
|
$ |
27.53 |
|
|
$ |
22.54 |
|
|
$ |
23.66 |
|
|
$ |
21.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(a)
|
|
|
0.27 |
|
|
|
0.18 |
|
|
|
0.11 |
|
|
|
0.28 |
|
|
|
0.27 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(10.69 |
) |
|
|
4.24 |
|
|
|
5.11 |
|
|
|
(1.09 |
) |
|
|
1.73 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(10.42 |
) |
|
|
4.42 |
|
|
|
5.22 |
|
|
|
(0.81 |
) |
|
|
2.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.30 |
) |
|
|
(0.10 |
) |
|
|
(0.23 |
) |
|
|
(0.31 |
) |
|
|
(0.26 |
) |
From
net realized gains |
|
|
(2.62 |
) |
|
|
(0.77 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(2.92 |
) |
|
|
(0.87 |
) |
|
|
(0.23 |
) |
|
|
(0.31 |
) |
|
|
(0.26 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(13.34 |
) |
|
|
3.55 |
|
|
|
4.99 |
|
|
|
(1.12 |
) |
|
|
1.74 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
17.74 |
|
|
$ |
31.08 |
|
|
$ |
27.53 |
|
|
$ |
22.54 |
|
|
$ |
23.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(37.27 |
%) |
|
|
16.24 |
% |
|
|
23.30 |
% |
|
|
(3.31 |
%) |
|
|
9.22 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
5,965,713 |
|
|
$ |
12,273,819 |
|
|
$ |
9,631,884 |
|
|
$ |
7,822,739 |
|
|
$ |
7,619,731 |
|
Ratio
of net expenses to average net assets |
|
|
0.98 |
% |
|
|
0.96 |
% |
|
|
0.98 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
Ratio
of net investment income to average net assets |
|
|
1.05 |
% |
|
|
0.57 |
% |
|
|
0.45 |
% |
|
|
1.27 |
% |
|
|
1.16 |
% |
Ratio
of gross expenses to average net assets |
|
|
0.98 |
% |
|
|
0.97 |
% |
|
|
0.98 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
Portfolio
turnover rate(b)
|
|
|
58.91 |
% |
|
|
53.34 |
% |
|
|
43.51 |
% |
|
|
33.06 |
% |
|
|
26.06 |
% |
(a) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(b) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
144
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Year
Ended September 30, 2022 |
|
|
Period
Ended September 30, 2021(a) |
|
Regnan
Global Equity Impact Solutions |
|
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
9.22 |
|
|
$ |
10.00 |
|
| |
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.02 |
|
|
|
(— |
)(c) |
Net
realized and unrealized losses from investments and foreign
currency |
|
|
(2.97 |
) |
|
|
(0.78 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(2.95 |
) |
|
|
(0.78 |
) |
| |
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(2.95 |
) |
|
|
(0.78 |
) |
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
6.27 |
|
|
$ |
9.22 |
|
| |
|
|
|
|
|
|
|
Total
return |
|
|
(32.00 |
%)(d) |
|
|
(7.80 |
%)(e) |
Ratios/Supplemental
data: |
|
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
7,357 |
|
|
$ |
1,868 |
|
Ratio
of net expenses to average net assets |
|
|
0.89 |
% |
|
|
0.89 |
%(f) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.28 |
% |
|
|
(0.61 |
%)(f) |
Ratio
of gross expenses to average net assets |
|
|
4.03 |
% |
|
|
8.76 |
%(f) |
Portfolio
turnover rate(g)
|
|
|
49.28 |
% |
|
|
4.30 |
%(e) |
(a) |
For
the period from August 23, 2021, commencement of operations, to
September 30, 2021. |
(b) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(c) |
Amount
is less than $0.005 per share. |
(d) |
The
Adviser reimbursed the Fund $7,869 during the period in connection with an
error. Such reimbursement was 0.13% to the Fund’s total return on the
payment date. |
(e) |
Not
annualized for periods less than one year. |
(f) |
Annualized
for periods less than one year. |
(g) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
145
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Period
Ended September 30, 2022(a) |
|
TSW
Emerging Markets Fund |
|
|
| |
Net
asset value, beginning of year |
|
$ |
10.00 |
|
| |
|
|
|
Income
(loss) from investment operations: |
|
|
| |
Net
investment income(b)
|
|
|
0.13 |
|
Net
realized and unrealized losses from investments and foreign
currency |
|
|
(2.88 |
) |
| |
|
|
|
Total
from investment operations |
|
|
(2.75 |
) |
| |
|
|
|
Change
in net asset value |
|
|
(2.75 |
) |
| |
|
|
|
Net
asset value, end of year |
|
$ |
7.25 |
|
| |
|
|
|
Total
return |
|
|
(27.50 |
%)(c) |
Ratios/Supplemental
data: |
|
|
| |
Net
assets, end of year (000’s) |
|
$ |
7,253 |
|
Ratio
of net expenses to average net assets |
|
|
0.99 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
1.88 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
2.22 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
11.47 |
%(c) |
(a) |
For
the period from December 21, 2021, commencement of operations, to
September 30, 2022. |
(b) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
146
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Period
Ended September 30, 2022(a) |
|
TSW
High Yield Bond Fund |
|
|
| |
Net
asset value, beginning of year |
|
$ |
10.00 |
|
| |
|
|
|
Income
(loss) from investment operations: |
|
|
| |
Net
investment income(b)
|
|
|
0.43 |
|
Net
realized and unrealized losses from investments and foreign
currency |
|
|
(1.67 |
) |
| |
|
|
|
Total
from investment operations |
|
|
(1.24 |
) |
| |
|
|
|
Less
distributions paid: |
|
|
| |
From
net investment income |
|
|
(0.44 |
) |
| |
|
|
|
Total
distributions paid |
|
|
(0.44 |
) |
| |
|
|
|
Change
in net asset value |
|
|
(1.68 |
) |
| |
|
|
|
Net
asset value, end of year |
|
$ |
8.32 |
|
| |
|
|
|
Total
return |
|
|
(12.75 |
%)(c) |
Ratios/Supplemental
data: |
|
|
| |
Net
assets, end of year (000’s) |
|
$ |
11,184 |
|
Ratio
of net expenses to average net assets |
|
|
0.65 |
%(d) |
Ratio
of net investment income to average net assets |
|
|
5.01 |
%(d) |
Ratio
of gross expenses to average net assets |
|
|
1.90 |
%(d) |
Portfolio
turnover rate(e)
|
|
|
31.64 |
%(c) |
(a) |
For
the period from October 26, 2021, commencement of operations, to
September 30, 2022. |
(b) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
147
FINANCIAL
HIGHLIGHTS
For
the periods indicated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Shares |
|
|
|
Period
Ended September 30, 2022(a) |
|
|
Year Ended October 31, 2021 |
|
|
Year Ended October 31, 2020 |
|
|
Year Ended October 31, 2019 |
|
|
Year Ended October 31, 2018 |
|
|
Year Ended October 31, 2017 |
|
TSW
Large Cap Value Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
asset value, beginning of year |
|
$ |
15.60 |
|
|
$ |
11.46 |
|
|
$ |
12.50 |
|
|
$ |
13.69 |
|
|
$ |
13.37 |
|
|
$ |
13.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income(b)
|
|
|
0.14 |
|
|
|
0.03 |
|
|
|
0.08 |
|
|
|
0.22 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Net
realized and unrealized gains (losses) from investments and foreign
currency |
|
|
(1.10 |
) |
|
|
4.74 |
|
|
|
(0.58 |
) |
|
|
0.39 |
|
|
|
1.35 |
|
|
|
1.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(0.96 |
) |
|
|
4.77 |
|
|
|
(0.50 |
) |
|
|
0.61 |
|
|
|
1.42 |
|
|
|
1.63 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions paid: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
From
net investment income |
|
|
(0.11 |
) |
|
|
(0.05 |
) |
|
|
(0.10 |
) |
|
|
(0.20 |
) |
|
|
(0.07 |
) |
|
|
(0.08 |
) |
From
net realized gains |
|
|
(1.82 |
) |
|
|
(0.58 |
) |
|
|
(0.44 |
) |
|
|
(1.60 |
) |
|
|
(1.03 |
) |
|
|
(1.29 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions paid |
|
|
(1.93 |
) |
|
|
(0.63 |
) |
|
|
(0.54 |
) |
|
|
(1.80 |
) |
|
|
(1.10 |
) |
|
|
(1.37 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in net asset value |
|
|
(2.89 |
) |
|
|
4.14 |
|
|
|
(1.04 |
) |
|
|
(1.19 |
) |
|
|
0.32 |
|
|
|
0.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year . |
|
$ |
12.71 |
|
|
$ |
15.60 |
|
|
$ |
11.46 |
|
|
$ |
12.50 |
|
|
$ |
13.69 |
|
|
$ |
13.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return |
|
|
(7.11 |
%)(c) |
|
|
42.90 |
% |
|
|
(4.25 |
%) |
|
|
6.38 |
% |
|
|
11.03 |
% |
|
|
13.32 |
% |
Ratios/Supplemental
data: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets, end of year (000’s) |
|
$ |
35,215 |
|
|
$ |
39,445 |
|
|
$ |
30,593 |
|
|
$ |
35,956 |
|
|
$ |
41,099 |
|
|
$ |
40,234 |
|
Ratio
of net expenses to average net assets |
|
|
0.78 |
%(d) |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
Ratio
of net investment income to average net assets |
|
|
1.03 |
%(d) |
|
|
0.24 |
% |
|
|
0.70 |
% |
|
|
1.78 |
% |
|
|
0.54 |
% |
|
|
0.56 |
% |
Ratio
of gross expenses to average net assets |
|
|
0.98 |
%(d) |
|
|
1.77 |
% |
|
|
1.88 |
% |
|
|
1.74 |
% |
|
|
1.68 |
% |
|
|
1.63 |
% |
Portfolio
turnover rate(e)
|
|
|
46.37 |
%(c) |
|
|
29.00 |
% |
|
|
64.00 |
% |
|
|
46.00 |
% |
|
|
60.00 |
% |
|
|
40.00 |
% |
(a) |
For
the period from November 1, 2021 to September 30,
2022. |
(b) |
Net
investment income (loss) for the period ended was calculated using the
average shares outstanding method. |
(c) |
Not
annualized for periods less than one year. |
(d) |
Annualized
for periods less than one year. |
(e) |
Portfolio
turnover is calculated at the fund level without regard to each class of
shares. |
148
JOHCM
Funds
Notice
of Privacy Policy & Practices
I.
SAFEGUARDING PRIVACY
We
recognize and respect the privacy expectations of each of our investors and we
believe the confidentiality and protection of investor information is one of our
fundamental responsibilities. New technologies have dramatically changed the way
information is gathered and used, but our continuing commitment to preserving
the security and confidentiality of investor information has remained a core
value of the Trust.
II.
INFORMATION WE COLLECT AND SOURCES OF INFORMATION
We
may collect information about our customers to help identify you, evaluate your
application, service and manage your account and offer services and products you
may find valuable. We collect this information from a variety of sources
including:
|
• |
|
Information
we receive from you on applications or other forms (e.g. your name,
address, date of birth, social security number and investment
information); |
|
• |
|
Information
about your transactions and experiences with us and our affiliates (e.g.
your account balance, transaction history and investment selections);
and |
|
• |
|
Information
we obtain from third parties regarding their brokerage, investment
advisory, custodial or other relationship with you (e.g. your account
number, account balance and transaction history. |
III.
INFORMATION WE SHARE WITH SERVICE PROVIDERS
We
may disclose all non‑public personal information we collect, as described above,
to companies (including affiliates) that perform services on our behalf,
including those that assist us in responding to inquiries, processing
transactions, preparing and mailing account statements and other forms of
shareholder services provided they use the information solely for these purposes
and they enter into confidentiality agreements regarding the information.
IV.
INFORMATION WE MAY SHARE WITH AFFILIATES
If
we have affiliates which are financial service providers that offer investment
advisory, brokerage and other financial services, we may (subject to Board
approval) share information among our affiliates to better assist you in
achieving your financial goals.
V.
SAFEGUARDING CUSTOMER INFORMATION
We
will safeguard, according to federal standards of security and confidentiality,
any non‑public personal information our customers share with us.
We
will limit the collection and use of non‑public customer information to the
minimum necessary to deliver superior service to our customers which includes
advising our customers about our products and services and to administer our
business.
We
will permit only authorized employees who are trained in the proper handling of
non‑public customer information to have access to that information.
We
will not reveal non‑public customer information to any external organization
unless we have previously informed the customer in disclosures or agreements,
have been authorized by the customer or are required by law or our
regulators.
We
value you as a customer and take your personal privacy seriously. We will inform
you of our policies for collecting, using, securing and sharing nonpublic
personal information the first time we do business and, except as described
below, every year that you are a customer of the Trust, or anytime we make a
material change to our privacy policy.
We
may combine a privacy notice with another document (for example, an account
statement, annual report, prospectus, trade confirmation) or may deliver the
notice electronically where appropriate consent has been obtained. We generally
will not deliver an annual notice as long as (i) we disclose non‑public
personal information only as described above policy, and (ii) we have not
changed our policies and practices with regard to disclosing non‑public personal
information from the policies and practices that were disclosed in the most
recent disclosure sent to consumers pursuant to this policy.
Investment
Adviser
JOHCM
(USA) Inc
53
State Street, 13th Floor
Boston,
Massachusetts 02109
Investment
Subadviser
Thompson,
Siegel & Walmsley LLC
6641
W. Broad Street, Suite 600
Richmond,
Virginia 23230
Custodian
The
Northern Trust Company
50
South LaSalle Street
Chicago,
Illinois 60603
Independent
Registered
Public
Accounting Firm
PricewaterhouseCoopers
LLP
One
North Wacker Drive
Chicago,
Illinois 60606
Legal
Counsel
Ropes
& Gray LLP
Prudential
Tower, 800 Boylston Street
Boston,
Massachusetts 02199
Distributor
JOHCM
Funds Distributors, LLC
3
Canal Plaza, Suite 100
Portland,
Maine 04101
For
Additional Information, call
866‑260‑9549
(toll free) or 312‑557‑5913
To
Learn More
Several
additional sources of information are available to you. The Statement of
Additional
Information
(“SAI”), incorporated into this prospectus by reference, contains detailed
information on Fund policies and operations.
Additional
information about a Fund’s investments is available in the Trust’s annual and
semi-annual report to shareholders. The Trust’s annual reports contain
management’s discussion of market conditions and investment strategies that
significantly affected a Fund’s investment return during its last fiscal
year.
Call
the Funds at 866‑260‑9549 (toll free) or 312‑557‑5913 between the hours of 8:30
a.m. and 7:00 p.m. Eastern time on days the Funds are open for business to
request free copies of the SAI and the Trust’s annual and semi-annual reports,
to request other information about the Funds and to make shareholder inquiries.
You may also visit the Funds on the web at www.johcm.com to obtain free copies
of the Trust’s SAI and annual and semi-annual reports. Or, write to the Trust
at:
JOHCM
Funds Trust
c/o
The Northern Trust Company
P.O.
Box 4766
Chicago,
Illinois 60680-4766
You
may obtain reports and other information about the Funds on the EDGAR Database
on the SEC’s internet site at http://www.sec.gov, and copies of this information
may be obtained, after paying a duplicating fee, by electronic request at the
following e‑mail address:
[email protected].
Investment
Company Act File Number: 811‑23615