Aristotle Small Cap Equity Fund

Aristotle Small Cap Equity Fund

Ticker: ARSBX
CUSIP: 461 41Q 626
Inception: October 30, 2015
Managers: Dave Adams, CFA
Jack McPherson, CFA
Expense Ratio: 1.50% (Gross)
0.96% (Net)

Prospectus | Summary Prospectus | SAI | Fact Sheet

2018 Capital Gains Estimates

Quarterly Commentaries

2019: Q1
2018: Q1 | Q2 | Q3 | Q4
2017: Q1 | Q2 | Q3 | Q4

Investment Objective

The investment objective of the Aristotle Small Cap Equity Fund (the “Fund”) is to seek long-term capital appreciation.

The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval, upon at least 60 days’ prior written notice to shareholders.  There is no guarantee that the Fund will achieve its investment objective. The Fund’s investment strategies and policies may be changed from time to time without shareholder approval or prior written notice, unless specifically stated otherwise in the Prospectus or the Statement of Additional Information (“SAI”).
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Principal Strategies

Under normal circumstances, the Fund invests at least 80% of its net assets (including amounts borrowed for investment purposes) in equity securities of small capitalization companies.  The Fund’s investment advisor, Aristotle Capital Boston, LLC (the “Advisor”), considers small capitalization companies to be those companies that, at the time of initial purchase, have a market capitalization equal to or less than that of the largest company in the Russell 2000® Index during the most recent 12-month period.  The Russell 2000 Index is reconstituted annually. Because small capitalization companies are defined by reference to an index, the range of market capitalization of companies in which the Fund invests may vary with market conditions.  Investments in companies that move above or below the capitalization range may continue to be held by the Fund at the Advisor’s sole discretion.  The Fund’s investment in equity securities may include common stocks, depository receipts and exchange-traded funds (ETFs) that invest primarily in equity securities of small capitalization companies.  Depository receipts represent interests in foreign securities held on deposit by banks.  ETFs are investment companies that invest in portfolios of securities designed to track particular market segments or indices, the shares of which are brought and sold on securities exchanges.

The Fund seeks to meet its investment objective by investing primarily in equity securities of U.S. issuers but may invest up to 5% of its total assets in American Depository Receipts (ADRs).  ADRs are receipts that represent interests in foreign securities held on deposit by U.S. banks.

In pursuing the Fund’s investment objective, the Advisor employs a fundamental, bottom-up, research-driven approach to identify companies for investment for the Fund. The Advisor focuses on those companies that it believes are undervalued by the market relative to their fair value.  The Advisor seeks to identify high-quality businesses by focusing on companies with the following attributes: disciplined business plan; attractive business fundamentals; sound balance sheet; financial strength; experienced, motivated company management; reasonable competition; and/or record of long term value creation.

The Fund generally seeks favorable performance relative to its benchmark, the Russell 2000 Index.  However, the Advisor is not constrained by the composition of the Russell 2000 Index in selecting investments for the Fund.
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1 The Fund has an inception date of October 30, 2015.

The total annual operating expenses are 1.50%, and net operating expenses are 0.96%.

Returns for performance under one year are cumulative, not annualized. Short-term performance, in particular, is not a good indication of the Fund’s future performance, and an investment should not be made based solely on returns. Because of ongoing volatility, fund performance may be subject to substantial short-term changes.

Performance data quoted here represent past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end, please call (844) 274-7868.

The Fund’s advisor has contractually agreed to waive certain fees and/or absorb expenses through April 30, 2028 to the extent that the total annual operating expenses do not exceed 0.90% of the Fund’s average daily net assets. The Fund’s advisor may seek reimbursement from the Fund for waived fees and/or expenses paid for three years from the date of the waiver or payment. A redemption fee of 1.00% will be imposed on redemptions of shares within 30 days.


Top Ten Equity Holdings*

Security % of Portfolio
QTS Realty 2.1%
1-800-FLOWERS.COM 2.0%
Monro 2.0%
Euronet Worldwide 2.0%
Merit Medical Systems 1.9%
Bottomline Technologies 1.9%
National Bank Holdings 1.8%
Carter’s 1.7%
Mercury Systems 1.7%
Total 19.1%

View entire portfolio holdings here.

* Holdings as of March 31, 2019. Percentage weights are based on the total Fund and are subject to change.

Holdings are available within the last 12 months.

Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed as recommendations by the Fund, its Advisor or Distributor. 

An investment in the Fund is subject to risks, and you could lose money on your investment in the Fund. The principal risks of investing in the Fund include, but are not limited to, investing in small-cap companies and ETFs. Small companies carry additional risks because their earnings and revenues tend to be less predictable, and their share prices more volatile, than those of larger, more established companies. The shares of smaller companies tend to trade less frequently that those of larger, more established companies, which can adversely affect the pricing of these securities and the Fund’s ability to sell these securities. Read More…