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: 1.01% (Gross)
0.90% (Net)

Prospectus | Summary Prospectus | SAI | Fact Sheet

2022 Capital Gains Estimates

Quarterly Commentaries

2023: Q1 | Q2 |

2022: Q1 | Q2 | Q3 | Q4

2021: Q1 | Q2 | Q3 | Q4

2020: Q1 | Q2 | Q3 | Q4

2019: Q1 | Q2 | Q3 | Q4

2018: Q1 | Q2 | Q3 | Q4

2017: Q1 | Q2 | Q3 | Q4
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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 (approximately $16.7 billion during the 12-month period ended December 31, 2022).  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 in the Advisor’s sole discretion. The Fund’s investments 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 bought 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 by the Fund. The Advisor focuses on those companies that it believes have high-quality businesses that are undervalued by the market relative to what the Advisor believes to be 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 a 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 Russell 2000® Index measures the performance of the small cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The volatility (beta) of the Fund may be more or less than the index. It is not possible to invest directly in this index.

The total annual operating expenses are 1.01%, and net operating expenses are 0.90%.

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, 2024 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 fiscal 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 of purchase.

Fund Holdings*

Top Ten Holdings % of Fund
Acadia Healthcare 2.6%
Huron Consulting Group 2.5%
Merit Medical Systems 2.4%
Dycom Industries 2.4%
Advanced Energy Industries 2.0%
Itron 1.8%
Belden 1.8%
AerCap Holdings 1.8%
MACOM Technology Solutions 1.8%
Chemed 1.6%
Total 20.7%

* Top Ten Holdings as of June 30, 2023. Percentage weights are based on the total Fund excluding cash and cash equivalents and are subject to change. For a full list of all holdings, click here

Quarterly Fund Holdings for the last fiscal year are available via the Annual Report, Semi-Annual Report and Schedule of Investments and can be found here.

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, market risk, equity risk, small-cap company risk, sector focus risk, recent market events risk, real estate investment trusts (REITs) risk, value-oriented investment strategies risk, foreign investment risk, management and strategy risk, exchange-traded funds (ETFs) risk and cybersecurity risk.

Market Turbulence Resulting from COVID-19 – The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. To learn more about the Principal Risks of Investing in the Fund, please reference the prospectus.