Global Value Fund
The Advisory Research Global Value Fund invests in equity securities of companies located throughout the world, including the United States, that we believe are profitable, asset rich, conservatively capitalized and maintain high-quality balance sheets. The Advisory Research investment process focuses on the downside protection and upside potential of individual securities. Downside protection may be discovered through extensive fundamental analysis of companies in order to determine a security’s true net asset value. The team determines upside potential in a particular company through qualitative analysis utilizing senior management interviews, company visits and competitive analysis.
|Net Expense Ratio||1.10%|
|Gross Expense Ratio||2.37%|
|Portfolio Managers||Adam Steffanus,
Top Ten Holdings
|J.P. Morgan Chase & Co.||5.38%|
|Johnson & Johnson||5.02%|
|Honeywell International, Inc.||4.78%|
|Verizon Communications, Inc.||4.30%|
|Roche Holdings AG||3.64%|
|Taiwan Semiconductor Manufacturing Co., Ltd.||3.43%|
|CVS Health Corp.||3.38%|
|Wal-Mart de Mexico SAB de CV||2.85%|
Holdings are subject to change and risk.
Monthly Fund PerformancePerformance as of October 31, 2017
|1 Month||Year to Date||1 Year||3 Year||5 Year||Since Inception1|
Quarterly Fund PerformancePerformance as of September 30, 2017
|3 Months||Year to Date||1 Year||3 Year||5 Year||Since Inception1|
1Performance since inception is reported from 01/01/2009. The inception date of the Advisory Research Global Value Fund is 07/30/2010. Performance shown prior to 07/30/2010 is derived from the performance of a limited partnership account, which commenced on 01/01/2009 (the “Predecessor Account”). The predecessor entity was not registered under the 1940 Act. The fund will be managed in a materially equivalent manner to the predecessor. If the Predecessor Account were subject to the same requirements and restrictions as the Fund, the performance may have been adversely affected. Please see the prospectus for more information.
Performance for periods over one year is annualized. The performance data quoted presents past performance and post performance is not a guarantee of future results. Investment return and principal value of an investment 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. A redemption fee of 2.00% will be imposed on redemptions of Fund shares owned less than 90 days.
The Fund’s advisor has contractually agreed to waive its fees and/or absorb expenses of the Fund to ensure that total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, dividend expenses on short sales, acquired fund fees and expenses as determined in accordance with Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed “Net Expense Ratio” listed on the Portfolio tab. This agreement is in effect until March 1, 2017, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund, subject to limitations, for fees it waived and Fund expenses it paid for three years from the date of any such waiver or payment.
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
Principal Risks of Investing
Before you decide whether to invest in the Fund, carefully consider these risk factors and special considerations associated with investing in the Fund, which may cause investors to lose money.
Investment Risks: An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest.
Equity Risks: The value of securities held by the Fund may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests.
Foreign Investment Risks: The Fund’s investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers. Adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of its investments.
Currency Risks: Foreign securities that trade in, and receive revenues in, foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged.
Emerging Markets Risks: The Fund’s investments in foreign issuers in developing or emerging market countries involve exposure to changes in economic and political factors. The economies of most emerging market countries are in the infancy stage of capital market development. As a result, their economic systems are still evolving and their political systems are typically less stable than those in developed economies. Emerging market countries often suffer from currency devaluation and higher rates of inflation.
Management Risks: The Fund’s portfolio is actively managed. The Fund’s advisor applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results.
Non-Diversification Risks: The Fund is non-diversified, which means the Fund may focus its investments in the securities of a comparatively small number of issuers. Investment in securities of a limited number of issuers exposes the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number of issuers.
Finance Sector Risks: From time to time, the Fund may invest a significant amount of its total assets in the finance sector, which may be subject to specific risks. These risks include governmental regulation of the sector and governmental monetary and fiscal policies which impact interest rates and currencies and affect corporate funding and international trade.
Small- and Mid-Cap Company Risks: The securities of small- or mid-cap companies may be subject to more abrupt or erratic market movements and may have lower trading volumes or more erratic trading than securities of larger companies or the market averages in general.
Value Stock Risk: Value stocks involve the risk that the value of the security will not be recognized for an unexpectedly long period of time or that the security is not undervalued but is appropriately priced. The Fund’s focus on value investing may cause the Fund to underperform when growth investing is in favor.
ETF Risks: The risk of ETFs generally reflects the risk of owning shares of the underlying securities held by the ETFs, although the lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities. The Fund limits its investment in shares of other investment companies, including ETFs, to the extent allowed by the Investment Company Act of 1940, as amended (the “1940 Act”).
Prospectus and SAI
- Account Application
- IRA Application Form
- IRA Transfer Form
- Account Privileges Change Form
- Cost Basis Election Form
- Traditional IRA Custodial Agreement
- Roth IRA Custodial Agreement
Click here for a list of glossary terms
GLOBAL VALUE FUND MANAGEMENT
ADAM STEFFANUS, CFA
MANAGING DIRECTOR, PORTFOLIO MANAGER
Adam Steffanus, CFA has 19 years of investment experience and has served as a Managing Director of the firm and Portfolio Manager since 2017. Prior to joining Advisory Research, he was a co-lead Portfolio Manager at Credit Suisse Asset Management. Mr. Steffanus joined Credit Suisse in 2005 after receiving his MBA from The University of Chicago Booth School of Business. Prior to business school, Mr. Steffanus worked in private equity structuring leveraged buyout transactions. Mr. Steffanus is a CFA charterholder and an active member of the CFA institute and the CFA Society of Chicago.
MICHAEL VALENTINAS, CPA
MANAGING DIRECTOR, PORTFOLIO MANAGER
Michael Valentinas, CPA has 19 years of investment experience and has served as a Managing Director of the firm and Portfolio Manager since 2017. Prior to joining Advisory Research, he was responsible for leading the development of Credit Suisse HOLT’s stock selection framework and researching global trends in the equity markets. He joined HOLT Value Associates in 2001 after spending three years as a tax and compensation consultant for Arthur Andersen. He is a CPA and a graduate of DePaul University in Chicago, IL.
Advisory Research Funds are distributed by IMST Distributors, LLC.