STRATEGY OVERVIEW
The Fund will invest, under normal circumstances, at least 80% of its net assets primarily in small-capitalization companies, which the Fund defines as those companies with market capitalizations below $4 billion at the time of original purchase. The Adviser generally selects stocks of companies that have the following characteristics:
• a below average price/earnings ratio as compared with the average
price/earnings ratio of the equity securities in the Russell 2000 Value Stock
Index;
• above average projected earnings growth as compared to the average
projected earnings growth the equity securities in the Russell 2000 Value
Stock Index.
The Fund generally invests substantially all of its assets in common stocks and other equity securities, which can include convertible debt, exchange traded funds (ETFs) that invest primarily in equity securities, depository receipts, warrants, rights, equity interests in real estate investment trusts (REITs) and preferred stocks. The Fund invests roughly similar amounts of its assets in each security in the portfolio at the time of original purchase, although the portfolio is not systematically rebalanced. This approach avoids the overweighting of any individual security being purchased. The Adviser may sell portfolio stocks when they are no longer attractive based on their price or earnings growth potential.
The Fund may invest up to 30% of its assets in securities of companies
headquartered outside the United States. These investments will be made in
securities traded on an exchange outside the United States and/or American
Depository Receipts (“ADRs”), which are depository receipts for foreign
American Depository Receipts are negotiable
certificates that represent a given number of
shares of stock in a foreign corporation.
However, they are bought and sold in the
American securities market, just as stock is traded.
securities denominated in U.S. dollars and traded on U.S. securities markets or
available through a U.S. broker or dealer. ADRs may be purchased through“sponsored” or “unsponsored” facilities. A sponsored facility is established
jointly by the issuer of the underlying security and a depository, whereas a
depository may establish an unsponsored facility without participation by the
issuer of the depository security. Holders of unsponsored depository receipts
generally bear all the costs of such facilities and the depository of an unsponsored
facility frequently is under no obligation to distribute shareholder
communications received from the issuer of the deposited security or to pass
through voting rights to the holders of such receipts.
The Fund intends to diversify its investments in securities of companies
headquartered outside the United States across different countries, but the
percentage of Fund assets invested in particular countries or regions will change
from time to time based on the Adviser’s judgment. The Fund intends to invest in the securities of companies located in developed countries and, to a lesser extent,
those located in emerging markets, and the Fund may consider investments in
companies in any of the world’s developed or emerging stock markets.
OBJECTIVE
The Fund seeks long-term capital appreciation. The Fund’s goal is fundamental,
which means that it cannot be changed without shareholder approval. The
investment strategies described below are non-fundamental, which means that
they may be changed by action of the Board of Trustees of the Trust, without
shareholder approval.
Mutual fund investing involves risk. Principal loss is possible. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund invests in medium capitalization companies which involve additional risks such as limited liquidity and greater volatility. Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity.
The Cullen Small Cap Value Fund is a new fund with limited operating history.
